Child Tax Credit is a credit given to parents having children who are not able to bear the expenses of their children. This credit is given to the parents to fulfil the education of their child, feed them healthy food, and maintain their standard of living. Usually, the parents are given up to $2000 for Each Child till the age of 17. Recently, the Department of Internal Revenue Service (IRS) has decided to increase the amount of Child Tax Credit to $3600. This benefit is given to the families based on their taxes paid and the level of their income.
$3600 Child Tax Credit 2025
Many families have children but are not able to bear their full expenses. Few parents are not able to afford the Education or their Medications due to low income. To nullify this, the government of the U.S. started an initiative to provide child tax credit and offer money to those families who have children below 17 years of age. The American Rescue Plan Act (ARPA) recently has increased its amount and has also expanded the eligibility criteria due to most of the families qualify. The new regulations have stated that the parents who have filed the taxes and have not claimed it yet, even they are eligible for this credit.
This year the ARPA have increased the amount for CTC and parents can claim up to $3600 for children aged 6 or below. For the children aged between 6 to 17, the parents can claim up to $3000 per child. It is up to them whether they want to sponsor the education or want to pay food or medication bills. Moreover, some families do not owe any taxes, they are also eligible for child tax credit.
$3600 Child Tax Credit Payment Overview
Article On | $3600 Child Tax Credit |
Country | USA |
Department | Internal Revenue Department |
Eligibility | The child must be below 18 years of age |
Amount | $3600 |
Payment Mode | Direct Deposits and Physical Checks |
Program Name | Child Tax Credit (CTC) |
Category | Government Aid |
Official Website | Irs.gov |
Eligibility for $3600 Child Tax Credit
The eligibility to claim the child tax credit is as follows:
- The families claiming the child credit must be the permanent resident of the U.S.
- The child or children for whom the family is claiming the tax credit must be below 18 years of age to qualify.
- The applicants must be the biological parents of the child.
- The child who is applying must have a valid social security number.
When can you claim the $3600 Child Tax Credit?
In the earlier times, the families could withdraw the CTC on their tax returns annually. The concept of CTC was that the dependents would receive the benefit of CTC if the tax credit was more than the tax liability. Further, the ARPA also introduced a temporary plan where the parents were allowed advanced payments which were disbursed monthly. However, after some time this benefit was cancelled in December 2021. Now, there is no specific date to claim your CTC, families can claim it anytime they want to in the financial year. Although, you cannot use the whole amount at one single time altogether.
Benefits of Child Tax Credit
There are various benefits a family and the child can enjoy from the Chil Tax Credit. The primary benefit is that the education of the children is not harmed due to lack of income. Moreover, if a child is suffering from any medical disease, parents through CTC can easily bear their medical expenses.
It also helps to provide healthy and clean meals to the children to keep them safe from various diseases. Altogether, it helps families to sustain the rising costs of raising a child. Now that there has been an increase in the price of the claim it has become easier for the families to keep their children healthy and happy. With this benefit, the parent does not take their children as a liability on them.
Recent Update on $3600 Tax Credit
The news about the increase in Child Tax Credit is all over the internet. However, there is no evident or confirmed announcement of this increase by the officials. This confusion has happened due to the last expansion that happened in the year 2021, initiated by the American Rescue Plan Act. However, this concept of advance payments ended in 2021 itself. Until there is a confirmed announcement made from the end of the IRS, families should not believe any rumour.
Families to maximize the benefits of the Child Tax Credit, should understand the mechanism of its working in deep. There is no confirmed announcement of the expansion or increase in the amount, so it is advised to not fall for traps and stay away from fraud.
FAQs
Will I receive the CTC monthly?
No, you will not receive the CTC monthly as it is a one-time payment from the taxes you have paid.
Am I eligible for this CTC?
If you have a child aged between 6 to 17 then your child is eligible. It is also important for you to meet the income thresholds set by your state.
How much amount will I receive if I have two children?
You are eligible to receive $3600 for each child, irrespective of the quantity of children.
Mary Pashak is a financial journalist with 4 years of experience writing about finance and current news. She covers the latest market trends and important economic events. Working with MV News, Mary provides clear and easy-to-understand articles that help readers stay updated on financial topics. Her goal is to make complex financial news more accessible to everyone.