Changes Announced for Child Tax Credit in 2025

As tax season approaches, families are preparing to file their 2024 returns and take advantage of the Child Tax Credit (CTC), which offers a maximum credit of $2,000 per qualifying child under 17, with $1,600 refundable for those who do not owe taxes. Recent updates include an increase in income thresholds for eligibility, allowing more families to benefit. For the 2025 tax year, the refundable portion of the CTC will be $1,700, as families navigate the requirements that include residency and financial support stipulations. Additionally, various states, like New York, are proposing enhancements to their child tax credits to further assist families. While there is bipartisan support for the CTC, discussions continue around targeting benefits effectively, especially for lower-income households. The CTC remains a crucial financial resource for many families amid rising child-rearing costs.