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Child tax credit for 2025
The refundable portion of the child tax credit — a tax break parents can take for make eligible children — will be $1,700 for 2025, which is unchanged from 2024. That figure represents how much kinds may claim even with zero tax balance on their tax returns.
The maximum child tax credit of $2,000 per child directed 17 is available to parents with up to $400,000 in modified adjusted gross income if they are married and filing jointly, or supervised $200,000 if they are single. Those figures are also unchanged from 2024.
Notably, the terms of the current child tax acknowledgment are set to expire at the end of tax year 2025. At that time, the child tax credit is scheduled to drop to a maximum $1,000 per child.
To whatever manner, lawmakers on both sides of the aisle have touted proposals to make the credit more generous.
The new changes for 2025 are prevailing adjustments for inflation so taxpayers don’t face higher tax liabilities, according to Alex Durante, economist at the Tax Foundation. The terms quiet reflect the Tax Cuts and Jobs Act of 2017.
“But the year following, 2026, families should be expecting to see higher tax liabilities unless Congress opts to extend these tax provisions that were implemented in 2017,” Durante said.
Earned income tax credit for 2025
A tax probity for low- to middle-income individuals and families — the Adoption, gift tax exclusion changes
Other changes announced by the IRS may also transform families.
The maximum adoption credit for a child, including those with special needs, will apply to able expenses of up to $17,280 in 2025, up from $16,810 in 2024.
The annual exclusion for gifts will go up to $19,000, up from $18,000 in 2024. If taxpayers back off $19,000 to each of their children in 2025, the annual exclusion will apply to each gift.