The Internal Revenue Service (IRS) has confirmed that it will send a one-time refund of $1,700 per child to eligible families in 2025. The IRS provides financial assistance to millions of American families through the Child Tax Credit (CTC), one of its most important tools. In addition to reducing the tax burden, this benefit helps households financially, which supports stable families and children’s development.
Who is eligible?
To qualify for these payments, an individual must have filed a 2021 tax return and been eligible for the Recovery Rebate Credit (RRC), but didn’t claim it. The IRS will use internal data to determine who is eligible and will make direct deposits to which payments will be sent automatically.
Another important aspect to note is that the IRS will send a separate letter to eligible taxpayers notifying them of the payment. If an individual is unsure of their eligibility or needs more information about their payments, the IRS website will provide all the necessary information.
To further understand who is eligible, a few other requirements must be met, including but not limited to
– The dependent must be under the age of 17 at the end of the tax year.
– The dependent must not have contributed more than half of his or her own support
– The dependent must have lived with the taxpayer for more than half of the year.
What if I haven’t filed my 2021 tax return?
Taxpayers who haven’t filed their 2021 tax return have until April 15, 2025, to do so. The IRS has stated that these taxpayers may still be eligible for a refund, including the RRC.
Do I need to do anything to receive my payment?
In order to receive this benefit, taxpayers must complete Form 1040, which is the standard document used for filing tax returns. It is important to note that this process is only available to eligible individuals. After that, the IRS will automatically process payments if you qualify.
How will I receive my payment?
Payments will be made by direct deposit, provided you provided your bank account information to the IRS with your 2021 tax return. The other option will be a paper check.
When will I receive my payment?
The IRS states that status updates should appear within 24 hours after electronically filing a current year return, 3-4 days after electronically filing a prior year return, and 4 weeks after filing a paper return. Individuals can check the status of their refund online. The IRS began sending out payments in late February 2025, so you can expect to receive your refund in the coming weeks.
The $1,700 payment is a welcome relief for eligible taxpayers
This special payment is designed to bridge the gap between advance payments and the actual credit amount. While millions of taxpayers will receive these payments, it is important to understand the process, eligibility criteria and timeline.
The IRS has also confirmed that payments will be sent automatically and that taxpayers will not need to do much other than file their tax returns. Taxpayers should also note that payment amounts can vary, but they can expect to receive up to $1,700. While the IRS processes the refunds, individuals can check the status of their refund on the IRS website.
This payment comes as a relief to eligible individuals and provides a significant boost to their financial security. It is important to note that as the financial industry evolves, taxpayers must ensure that they stay informed and adapt to changes as they may impact their financial situation.