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The Internal Revenue Service (IRS) has several tax credit and deduction options that can be claimed when filing the Tax Return. One of them is the Child Tax Credit (CTC), intended for families with qualifying children.

To access this benefit, a series of conditions must be met, such as the child’s age, the taxpayer’s income, relationship, and residence, among other criteria.

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What are the Child Tax Credit requirements?

Among the main requirements that taxpayers who want to receive the CTC must meet are:

  • The taxpayer and each child must have a valid Social Security number (SSN) for work, issued before the filing deadline
  • The child must be under 17 years old at the end of the fiscal year
  • Must be:
    • Child
    • Stepchild
    • Adopted Child
    • Sibling
    • A Descendant of Any of the Above
  • The minor cannot have provided more than half of their own support during the year
  • Must have lived with the taxpayer for more than half the year
  • Must be claimed as a dependent on the tax return
  • Must not file a joint return
  • Must be a citizen or resident alien

The credit sets a limit of $200,000 in annual income for a single return or $400,000 for a joint return. If these thresholds are exceeded, the amount is reduced.

What is the refundable amount of the Child Tax Credit?

The CTC is a nonrefundable tax credit. However, part of this benefit may be refundable through the (ACTC). For tax year 2025, the CTC is up to $2,200 per qualifying child.

The ACTC allows up to $1,700 per child as a refund for those who meet the requirements. To access this tax benefit, it is necessary to:

  • Have earned at least $2,500 in work income
  • Meet the CTC conditions
  • Have part of the credit that could not be used to reduce the tax owed

Other credits compatible with the Child Tax Credit: important information

Receiving the Child Tax Credit does not prevent you from applying for other IRS tax benefits if you also meet their requirements.

Among the main compatible credits are:

  • Earned Income Tax Credit (EITC): intended for workers and families with low or moderate income.
  • Child and Dependent Care Credit: helps offset expenses for the care of children or dependents so the taxpayer can work
  • American Opportunity Tax Credit (AOTC): for certain higher education expenses of eligible students
  • Lifetime Learning Credit (LLC): benefit for higher education and training expenses
  • Credit for Other Dependents (ODC): although it cannot be claimed for the same child who receives the Child Tax Credit, it can be used for other dependents who do not qualify for the CTC