$1,000 CTC Monthly Payments in 2025 – Check Eligibility & Payment Details

$1,000 CTC Monthly Payment in 2025: Know Eligibility and Important Details

The Child Tax Credit (CTC) is a very important tax benefit for families with children in the US. In 2025, many parents want to know if they will get the $1,000 CTC every month again. While the CTC is currently limited to $2,000 per child annually at the federal level, some states are expanding the scheme and offering additional benefits. Let’s understand this in detail.

Aspect	Details
Current CTC Amount	Up to $2,000 per qualifying child under 17 years old
Refundable Portion	Up to $1,700 per child if the credit exceeds tax owed
Income Threshold	Phase-out starts at $200,000 for single filers and $400,000 for married couples
Future Projections	If no changes are made, CTC may return to $1,000 per child after 2025
Possible Expansion	Some lawmakers are advocating for a $1,000 monthly CTC
How to Claim	File Schedule 8812 with IRS Form 1040

What is CTC?

The Child Tax Credit (CTC) is a tax benefit provided by the government to help with the cost of raising children. In 2025, you can get a credit of up to $2,000 for each child, of which up to $1,700 can be refunded – that is, even if you don’t owe tax, you can still get this money back.

Who is eligible to get the CTC?

To be eligible for CTC, these conditions must be met:

• The child must be under 17 years of age.
• The child must be a US citizen or a resident alien.
• You must show him as a dependent on your tax return.
• The child must have lived with you at least half the time in the year.
• You must have a source of income.

Will there be a $1,000 CTC per month in 2025?

It has not been decided yet. There is a discussion going on in the Congress whether to start a payment of $1,000 (for children under 6 years) and $500 (for older children) every month like before.

What is the difference between 2021 and 2025?

In 2021, under the American Rescue Plan, children used to get $300 and $250 every month. But that scheme ended in 2022. There is now talk of bringing back a similar scheme but no new law has been passed yet.

Income limits and phase-out rules

• If you are single and your income is above $200,000, the CTC starts decreasing.
• For married couples, the limit is $400,000.
• The credit of $50 is reduced for every $1,000 of additional income.

How to claim $1,000 monthly CTC?

If this scheme applies or you want to take the existing CTC, follow these steps:

1. Prepare documents:

• SSN or ITIN for children
• Proof of income (W-2, 1099)
• Previous tax returns (if any)

2. File Form 1040:

• Fill Schedule 8812 along with the tax form.

3. Get help with free tax filing:

• Government services like IRS Free File or VITA can help.

Difference between Refundable and Non-Refundable CTC

• $1,700 of the $2,000 is refundable, meaning you can get this amount even if your tax is zero.
• For this, you need to earn at least $2,500.

CTC benefits available at the state level

Some states also offer CTC on their own:

• New York: Offers $1,000 for children under 4 years of age and $500 for 4-16 years.
• California, Colorado and Vermont: Offer additional credits under different schemes in their respective states.

Impact of CTC on families

According to 2021 data:

• About 3.7 million children were lifted out of poverty.
• More than 90% of families used this amount to pay for essential expenses like rent, food, and electricity bills.

Frequently Asked Questions (FAQs)