The Internal Revenue Service (IRS) confirmed that it will grant a one-time payment of up to $1,700 to families who meet certain requirements and complete a form in 2025. This is a financial assistance linked to the Child Tax Credit (CTC), one of the most relevant programs for reducing the tax burden on households with dependent children under 17 years of age. Below, all the details to understand how to access this benefit, what are the eligibility conditions and what could happen with the credit during the new presidency of Donald Trump.
What is the Child Tax Credit and why is it granted?
The Child Tax Credit is a program that the IRS offers to families with the goal of providing tax relief and financial support. During the pandemic, this assistance was temporarily increased, reducing child poverty and helping millions of families cope with financial hardship. However, following the end of those increases, the credit returned to $2,000 per child, although for the 2024 tax year (for which returns are filed in 2025) a one-time payment of $1,700 was confirmed in certain cases, primarily for taxpayers who meet specific requirements and file the appropriate documentation.
This benefit is intended to reduce the tax burden on households with children. In general, it is available to those with dependents under 17 years of age, in order to receive an additional deduction or refund on their tax returns.
The one-time payment of $1,700: how it works and who it is aimed at
According to official information, the $1,700 will be granted as a refund or credit applicable to families claiming the Child Tax Credit, provided that they correctly complete their Form 1040 and comply with the conditions established by the IRS. This amount is intended to supplement assistance to households with qualifying children, so that those who apply will get immediate tax relief or a refund when they file their tax return.
Who qualifies?
- The child must be under the age of 17 at the end of the tax year.
- The child must be a biological child, stepchild, adopted child, sibling, step-sibling, or lineal descendant (such as a grandchild or niece or nephew).
- The child must not have contributed more than half of his or her own support during the year.
- The family must have lived with the child for more than half of the year.
- The child must have a valid Social Security number (SSN).
- The taxpayer must claim the child as a dependent on his or her tax return.
- Both the child and the taxpayer must be U.S. citizens or legal U.S. residents.
Also, there are income limits to receive the full amount. In most cases, the credit begins to be reduced if income exceeds $200,000 (or $400,000 for married filing jointly).
How to file the form and obtain the benefit`s IRS
To receive this one-time payment of $1,700, you must file Form 1040, which corresponds to the individual tax return in the United States. In this form, personal data and information about dependents must be included. Additionally, Schedule 8812 (Credits for Qualifying Children and Other Dependents) must be attached to reflect the Child Tax Credit claim.
In case you have been previously rejected or need a new review by the IRS, you can complete Form 8862, also available on the official IRS website. It is important to remember that a misstatement or improper claim could lead to a penalty of up to 20% of the amount claimed.
Changes in 2025: the impact of Trump’s second presidency
Since Donald Trump returned to the White House, some taxpayers are wondering if this will bring immediate modifications to the Child Tax Credit. The reality is that the Tax Cuts and Jobs Act (TCJA) of 2017 provided that several of its tax benefits, including increasing the child credit to $2,000, would expire at the end of 2025 if Congress does not take additional steps to extend them.
Experts such as Adam Brewer, a tax attorney with AB Tax Law, note that there is a broad bipartisan consensus to keep the credit at $2,000, so it will most likely be extended. However, if no legislative agreement is reached, the credit could revert to a maximum of $1,000 per child beginning in 2026. This uncertainty has led families to be on the lookout for any last-minute regulatory changes.
The importance of this financial support
Inflation, rising housing costs and the cost of basic products such as food have increased the financial needs of millions of families. Various reports indicate that around 48 million adults are in a vulnerable situation, which is why the Child Tax Credit plays a key role in mitigating child poverty and guaranteeing the economic stability of households.
In addition, political leaders and social activists highlight the relevance of providing support to parents who, at times, must assume the total cost of child support without a high income. According to the testimony of some families during a recent hearing in the House of Representatives, every dollar received through the Child Tax Credit can make a difference when facing debts and basic expenses.
Final Recommendations and Cautions
- Verify eligibility: Before filing, make sure the child meets all the criteria.
- Fill out the form accurately: To avoid penalties, it is essential not to make mistakes when filing Form 1040 and the corresponding schedules.
- Consult official sources: The IRS website (IRS.gov) offers Spanish and other language versions, as well as interactive tools to verify eligibility.
- Plan for the long term: With the possibility of legislative changes at the end of 2025, taxpayers should stay informed and, if necessary, adjust their withholding or estimated payments.
Ultimately, the Child Tax Credit and the one-time $1,700 payment represent remarkable relief for families with qualifying children. While the future of the credit after 2025 depends on Congressional action, in the short term this benefit is a critical alternative for those seeking a reduction in their tax burden or an additional refund when filing their return. For this reason, it is important to understand the requirements, fill out the forms correctly, and keep abreast of the latest updates announced by the IRS and federal authorities.
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