As tax season approaches, many families in Huntsville and Madison County are asking about the Child Tax Credit for 2025 and how it may impact their refund. At All Star Tax Pros, we want to make sure you understand what’s changed—and what hasn’t—so you can file with confidence.

What Is the Child Tax Credit in 2025?

For the 2025 tax season, the Child Tax Credit has returned to its standard structure and is no longer issued as monthly payments.

For eligible taxpayers, the credit is worth up to:

• $2,000 per qualifying child
• Children must be under age 17 at the end of the tax year
• The credit is claimed when you file your tax return—not paid in advance

How Much of the Credit Is Refundable?

A portion of the Child Tax Credit may be refundable through the Additional Child Tax Credit.

For the 2025 filing season:

• Up to $1,700 per child may be refundable, depending on income
• Refundability is based on earned income, not total income

This means even if you don’t owe taxes, you may still receive part of the credit as a refund.

Income Limits for the Child Tax Credit

The Child Tax Credit begins to phase out when income exceeds:

• $400,000 for married couples filing jointly
• $200,000 for single filers, heads of household, and married filing separately

Families earning below these thresholds may qualify for the full credit.

Important Changes From Prior Years

Families who received advance monthly payments in 2021 should note:

• ❌ No advance Child Tax Credit payments
• ❌ No IRS Letter 6419
• ✅ The credit is claimed entirely on your tax return

This simplifies filing but makes accuracy more important—especially for families with changing income or dependents.

Common Mistakes We See

When filing the Child Tax Credit, taxpayers often run into issues such as:

• Claiming a child who no longer qualifies
• Incorrect Social Security numbers
• Misunderstanding custody or dependency rules
• Overlooking refundable portions of the credit

These mistakes can delay refunds or trigger IRS notices.

Why Work With a Professional Tax Preparer?

Free filing tools may work for simple returns, but they don’t provide guidance when tax situations get more complex. Working with a professional helps ensure:

• Every eligible credit is claimed
• Filing errors are avoided
• Refunds are processed faster
• IRS issues are minimized

Get Help From a Local Tax Professional

At All Star Tax Pros, we help families across Huntsville and Madison County understand tax credits, maximize refunds, and file accurate returns year after year.

If you have questions about the 2025 Child Tax Credit, dependents, or your eligibility, we’re here to help.

Schedule your tax appointment today and file with confidence.