Although this year’s cost of living is lower than in previous years, the Internal Revenue Service of the United States (IRS) is working to lessen the financial vulnerability of many families who are unable to meet their basic needs or afford food products because of a lack of income.
In order to assist families with children under the age of 17, the Administration established the Child Tax Credit (CTC), a tax benefit that enables them to claim a tax deduction.
As previously announced by the Internal Revenue Service, this benefit will continue to be available through 2025, helping thousands of American homes with children under the age of 17 who are affected by the economy.
However, not everyone in this scenario will be eligible for this state assistance; in other words, they will need to fulfill a number of rules and restrictions set by the Administration itself, which will choose which families will receive this tax credit based on their individual circumstances.
The IRS Child Tax Credit is available to whom?
According to the institutions, the CTC is intended for families with dependent children, given that specific conditions are satisfied. In fact, each eligible child with a valid Social Security number to work in the United States may claim the credit, according to the IRS’s official website. Families will be subject to some requirements, though:
Age: at the end of the tax year, be younger than 17.
Relationship: be a direct descendant (grandchild or nephew), brother, sister, half-brother, half-sister, stepbrother, stepsister, adopted child, or kid.
- Dependency: be listed on the taxpayer’s tax return as a dependent.
- Residence: have spent more than half of the year residing with the taxpayer.
- Financial assistance: obtain a minimum of 50% of the taxpayer’s funds.
- Be a citizen, national, or resident alien of the United States.
- Status as a married couple and filing status: do not file a joint return with your spouse for the tax year, or do so solely to obtain a refund of estimated tax payments or income tax withheld.
- Social Security: own a current Social Security number that was issued prior to the filing deadline for your taxes and is required for work.
Similarly, the IRS Free File program offers free tax software to taxpayers whose income falls below specific levels. People with an annual adjusted gross income (AGI) of up to USD 84,000 can use this tool.
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Applying for the Children Under 17 Credit with the IRS
Taxpayers must fill out the following forms, include all pertinent information on their tax return, and provide the necessary supporting paperwork as asked by the authorities in order to be eligible for the Child Tax Credit in 2025:
- The typical form used to file a personal income tax return in the United States is Form 1040.
- Credits for Eligible Children and Other Dependents, Schedule 8812: This form needs to be filled out and sent with the return.
On the US Internal Revenue Service’s official website, you may find the forms you need to apply for the Child Tax Credit.
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For the beneficiary’s application to not be delayed or rejected, accurate information must be submitted. The IRS also provides other materials, including a compilation of the relevant CTC information and a guide to frequent errors made while filing for the benefit.