The Child Tax Credit (CTC) continues to be one of the largest tax breaks available to families in America. In the case of 2025, families with qualifying children can get credits of up to $3,650 or $3,090 each, depending on the age of the child and other variables.
As May disbursements loom, many families are wanting to know if they qualify and when they may get paid.
The 2025 Child Tax Credit Explained
After an overhaul that’s been introduced in late 2024, the child tax credit looks very different. For tax year 2025, the maximum credit is $3,650 (for children ages 0 through 5) and $3,090 (for children ages 6 through 17).
These amounts are inflation adjusted since last year to better support families who are dealing with increased costs.
In contrast to the temporary expanded monthly payment system put in place during the pandemic, the current structure mainly operates as a tax credit that is claimed when processing annual tax returns. But some qualifying families could get advance payments, based on data from past tax returns.
Eligibility Requirements
To qualify for the full Child Tax Credit in 2025, families must hit all these benchmarks:
The child has to be under 18 Years old at end of the tax year.
The child must be a citizen, national or resident alien of the United States
The child should have a valid Social Security Number
The child needs to have lived with the taxpayer for over half of the tax year
Half of the child’s financial support must be provided by the taxpayer
Income thresholds also apply. The credit phasing-out starts in 2025 for single filers whose modified adjusted gross income (MAGI) is above $200,000, and for joint filers with MAGI above $400,000.
May 2025 Payment Distribution
Vote in this poll The IRS said eligible families who had chosen advance payments would start seeing these deposits coming on May 15, 2025. These payments are part of the total credit you are expected to receive, based on information from your most recent tax return.
Families that submitted their 2024 tax returns by the April deadline can expect their payments to be processed automatically. This delay will impact those who filed extensions, or who may have changes in their filing status that result in delays.
Checking Your Payment Status
The IRS also has made some enhancements to its Child Tax Credit Update Portal, a tool that helps families keep tabs on their payment status. To check your status:
Visit the IRS website at irs. gov
Go on with the webpage of “Child Tax Credit Update Portal”
Authenticate using an existing IRS online account or through security questions
After logging in, you will see your:
Eligibility status
Payment history
Expected payment dates
Payment amounts
For families encountering technical issues with the online portal, the IRS has set up a specialized CTC helpline at 800-908-4184, with extended hours while payments are being issued.
Changes That Could Impact Your Credit
A number of life changes can affect your eligibility or how much you’ll get from the child tax credit. If you’ve had any of the following life changes since you filed your most recent tax return, you need to update your information on the IRS portal:
Birth or adoption of a child
Change in your filing status (marriage, divorce, separation)
Significant income changes
Disruption to primary residence or custody arrangements
Keeping this information up to date will help ensure that accurate amounts are paid and also help eliminate any potential repayment obligations when next year’s tax return is filed.
Direct Deposit Vs. Paper Checks
Direct Payments to Bank AccountsThe IRS strongly encourages families to receive their Child Tax Credit payments through direct deposit. When it comes to direct deposit, it has many benefits:
Quicker access to funds (usually 2-3 days sooner than that of paper checks)
“End of delays with mail delivery.
Reduced risk of payment loss or theft
Lower processing costs for the government–
Families that haven’t provided direct deposit information will receive paper checks, which tend to take 7 to 10 business days to arrive after the date the payment is issued.
People Who Don’t File Taxes and the Child Tax Credit
Families not required to file tax returns because their incomes are too low may still qualify for the Child Tax Credit. The IRS kept its simplified filing tool for non-filers, a basic submission that would help the agency determine eligibility for the credits and disburse payments.
Non-filers can use this tool by doing the following:
Confirm information for qualifying children (SSN, date of birth, relationship)
Have a good postal address or bank account details for payment
Fill out the US IRS easy online form
Community organizations in many cities still provide free assistance for families going through this process.
Impact on Other Benefits
Many families also want to know how receiving Child Tax Credit payments may affect their eligibility for other government benefits. The silver lining is that these payments are not considered income for eligibility purposes:
Medicaid
Supplemental Nutrition Assistance Program (SNAP)
Supplemental Security Income (SSI)
TANF: Temporary Assistance for Needy Families
Public housing assistance
This avoids families from losing these important benefits as a result of receiving their Child Tax Credit payment as one of several benefits.
Planning for Future Payments
The current structure of the Child Tax Credit is scheduled to stay in place until 2026, unless Congress passes more legislation. Families can then plan their finances accordingly, having that approximate amount of credit that will arrive.
Financial advisers have a few strategies for maximizing the benefit of these payments:
Even better, saving for future education costs
Meeting immediate needs related to housing, utility bills and food
Paying off high-interest debt
Building emergency savings
Text #8 – 8 things you can do to impact a child’s life
State-Based Supplement to Federal Credits
A number of states have their own supplemental child tax credits that go beyond the federal program. These state programs differ widely in eligibility and benefits.
Other states with planned significant supplement programs in 2025 include California, Colorado, Maryland, Massachusetts, New York, and Vermont. Families among these states should contact their state tax agencies for details on any added benefits they might be eligible for.
Avoiding Common Pitfalls
The Child Tax Credit system, though helpful, is fraught with potential pitfalls that families should know about:
“Parents should work together with shared custody situations.
Incomes that fluctuate around the phaseout thresholds will impact the amounts of credit
Residency situations in other countries can make a differense in eligibility
Missing or incorrect identifying information can slow payment
These and other complicated situations are better planned out with the help of a tax professional.
Protecting Against Fraud
Sadly tax credit programs tend attract scammers out looking to take advantage of those who receive them. The IRS has noted some common scams related to the Child Tax Credit:
Fake emails or texts purporting to be from the IRS
Calls asking for personal or financial information
Allows organizations to pay to receive their payments quickly
Phony government portals to carry out cyber scams
Keep in mind that the IRS never initiates contact with taxpayers by email, text message or social media to request personal or financial information. Any Child Tax Credit official communication will come by mail from the IRS or by the official IRS Web site.
With May 2025 payments being a significant financial lifeline for countless families, the Child Tax Credit remains a cornerstone of support for American households.
Understanding eligibility requirements, payment timelines and steps for checking payment status can help families make the most of this benefit and how to best incorporate it into their financial planning.
To ensure that you have the most current information on the Child Tax Credit, always check for official communications from the IRS or speak to a qualified tax professional who can advise you based on your specific situation.
