If you claim the Child Tax Credit, be aware that your refund may take a little longer than usual. Although you can send your tax return right away, the IRS takes time to review these cases. But don’t worry, the wait is worthwhile: this credit is ideal for families with children.
The limit for each child under the age of 17 is $2,000. However, there is one caveat: if you have no tax debts, you can only claim $1,700 per child under the Additional Child Tax Credit. This section is critical, and for this reason, the IRS takes a little longer to process it.
The IRS is processing child tax credits: Why the delay?
The IRS is not evil, just distrustful. To prevent fraud, the law requires them to withhold refunds for the Additional Credit until mid-February. If you submitted everything online via direct deposit, the money will most likely arrive in your account before March 3, 2025.
Now, if you only claim the standard credit (which reduces your tax debt), your refund will arrive quickly. But if you wanted more, be patient. Of course, don’t sleep: this increased benefit will expire in 2025. If Congress does not renew it, it will revert to $1,000 per child.
Now, there’s a trick you should try: The Additional Credit is refundable, which means they will return it to you even if you do not owe taxes.
However, it is precisely this advantage that causes the delay. Is it worthwhile? For many families, the answer is yes. $1,700 per child is no small accomplishment.
Other tax credits that American families can claim from the IRS
In addition to the Child Tax Credit (CTC), which is already a great goal for families with children, there are other tax credits that could add extra points on the tax return in 2025. Here are some:
Earned Income Tax Credit (EITC): This is like a reward for working. If your family has low or moderate income, you can receive a loan that, in some cases, even gives you money back. And if you have children, the amount goes up. Let it go!
Child and Dependent Care Credit: If you pay for daycare, babysitting or care for your children (or even for an adult dependent), this credit helps you recover part of that money. It’s like reimbursement for those expenses that break your soul.
American Opportunity Tax Credit (AOTC): If you have a child in college, this credit can reimburse you up to $2,500 for tuition, books and materials. It is for the first four years of higher education, so if your kid is at that stage, take advantage of it!
Lifetime Learning Credit (LLC): This is another education credit, but it has no year limit. If you or someone in your family is studying (even if it is a course or training), you can recover up to $2,000 per return. Ideal for those who are in “eternal learning” mode.
Saver’s Credit: If you are saving for retirement (in an IRA or 401(k)), this credit rewards you with a percentage of what you contributed. It depends on your income, but if you qualify, it’s like the IRS saying, “Okay, keep it up.”
Adoption Credit: If your family is in the adoption process, this credit helps you with the associated expenses. It is a considerable amount, so if you are in that, don’t miss it.
Residential Energy Credits: If you made improvements to your home to make it more efficient (solar panels, new windows, etc.), you can receive credits for that. It’s like the IRS rewards you for being eco-friendly.
Premium Tax Credit (PTC): If you purchased health insurance through the Marketplace and meet the income requirements, this credit helps lower the cost of premiums. Health and savings, all in one.
