Cassie Divelbliss
Aug 14, 2025
What Benefits Can I Receive for My Children on My Taxes?
This is a common question a majority of parents have when filing their yearly taxes. Below are some answers on some of the areas that are affected when claiming a child on your tax return.
Q: What Are the General Rules for Claiming a Child as a Dependent?
A: A qualifying child must be your son, daughter, stepchild, eligible foster child, brother, sister, half-sister, half-brother, stepbrother, stepsister, adopted child, or the child of one of these. They must be under age 19 or under 24 if they are a full-time student. There is no age restriction for dependents who are disabled. They must live with you for more than half a year and receive more than half of their financial support from you. A dependent can only be claimed on one taxpayer's return per year.
Q: What Is a Child Tax Credit (CTC)?
A: With the passing of the One Big Beautiful Bill Act, the Child Tax Credit for 2025 was increased to $2,200 per qualifying child under age 17 at the end of the year. This credit is taken against your tax liability for a reduction in tax owed. The credit is limited or phased out for tax returns with over $200,000 of gross income for single filers or $400,000 for married filing jointly. Up to $1,700 of the child tax credit is refundable, meaning you may receive it as a refund even if you don't owe any taxes.
Q: Is There a Credit for Dependent Children Age 17 or Over?
A: Yes. The credit for dependents age 17 or over is the Credit for Other Dependents. This non-refundable credit is $500 per dependent and follows the same income phase-out rules as the CTC.
Q: What Is the Child and Dependent Care Credit?
A: The Child and Dependent Care Credit is a credit for working parents who file as single or for married couples filing jointly who both work. The credit is calculated on Form 2441 with your Form 1040 and is based on the amounts paid for the care of dependent children under the age of 13. The maximum eligible expenses for 2025 are $3,000 for one qualifying child or $6,000 for two or more qualifying children. If your adjusted gross income (AGI) is not over $15,000, you may multiply your eligible expenses by 35% to calculate your credit. The credit percentage is gradually reduced to 20% if your AGI is over $43,000. You cannot claim the credit for payments made to your spouse, the child's parent, your own child under age 19, or any dependent listed on your tax return. This credit is a non-refundable credit, meaning there must be a tax balance owed to receive the benefit of the credit.
In summary, there are a few different benefits that children can bring to your tax return. Keeping up with the correct reporting of children on your tax return is important year to year, especially as they age and may no longer qualify as dependents. If you have questions about your child's dependent status, please reach out to your tax professional who will be able to assist in the proper reporting of your children.