The $300 Child Tax Credit (CTC) deposit for 2025 is an essential financial benefit for millions of American families. Although the $300 monthly payments from 2021 are no longer available, the annual credit still offers up to $2,000 per qualifying child when you file your tax return. This guide explains everything you need to know about the 2025 CTC deposit, including eligibility, refund timelines, and how to claim your payment.
What Is the $300 CTC Deposit for 2025?
The Child Tax Credit (CTC) is a federal tax benefit designed to help families with the cost of raising children. In 2025, the maximum credit remains $2,000 per qualifying child, with up to $1,700 refundable through the Additional Child Tax Credit (ACTC).
Why Is It Called the $300 CTC?
The term “$300 CTC” originates from the 2021 COVID relief program under the American Rescue Plan Act. During that year, families received monthly advance payments of up to $300 per child under 6 and $250 per child aged 6 to 17. However, these advance payments ended in December 2021, and the CTC returned to its original annual format.
In 2025, no monthly payments will be issued. Instead, the CTC is included in your federal tax refund when you file your tax return.
CTC Deposit Date & Time for 2025
The $300 CTC for 2025 is not a separate payment but part of your federal tax refund. This means that to receive it, you must file your 2025 tax return in 2026.
Expected Deposit Timeline
- File Early: Tax returns can be filed starting January 2026.
- IRS Processing: Refunds are usually processed within 21 days of e-filing.
- Direct Deposit: Opting for direct deposit ensures faster refund delivery.
Example:
If you file your return on January 25, 2026, and the IRS accepts it immediately, your refund (including CTC) could be deposited by February 15, 2026.
Eligibility Criteria for the 2025 CTC Deposit
To qualify for the CTC in 2025, you must meet certain IRS requirements:
1. Age Requirement
Your child must be under 17 years old at the end of the tax year.
2. Relationship Test
The child must be related to you as:
- Son, daughter, stepchild, or foster child
- Sibling, stepsibling, or a descendant (e.g., grandchild, niece, or nephew)
3. Residency Requirement
The child must have lived with you for more than half the year. Exceptions include temporary absences for school, medical care, or military service.
4. Support Test
You must have provided more than 50% of the child’s financial support during the year.
5. Citizenship Status
Your child must be a U.S. citizen, U.S. national, or resident alien with a valid Social Security Number (SSN) issued before the due date of your tax return.
6. Income Thresholds
The CTC begins to phase out at the following adjusted gross income (AGI) levels:
- $200,000 for single taxpayers and heads of household
- $400,000 for married couples filing jointly
The credit is reduced by $50 for every $1,000 over these income limits.
How to Claim the CTC and Receive Your Payment
To claim the CTC and receive your payment, follow these steps:
File Form 1040: Use Form 1040 and attach Schedule 8812 (Credits for Qualifying Children).
Submit Electronically: Use IRS e-file or an approved tax preparer for faster processing.
Choose Direct Deposit: Opting for direct deposit reduces the refund wait time by several days.
Direct Deposit Changes: Faster Processing in 2025
The IRS has announced that starting in 2025, direct deposit change requests will be processed faster.
Online direct deposit change requests will be processed within 1 day (down from 30 days).
In-person requests will also be expedited, ensuring quicker updates to payment information.
What Happened to the $300 Monthly CTC Payments?
The $300 monthly CTC payments were part of the 2021 expansion under the American Rescue Plan Act. During that time:
- Families received up to $300 per child under 6 and $250 per child aged 6-17 from July to December 2021.
- These payments were advance credits, reducing the overall CTC amount received at tax time.
However, these payments were temporary and ended in December 2021. For 2025, the CTC remains an annual credit provided after filing your tax return.
Tips to Avoid Delays and Get Your CTC Payment Faster
Double-Check Dependent Information: Ensure your child’s name and SSN match IRS records.
Use IRS-Approved Software: E-file your return for faster processing.
Avoid Paper Filing: Paper returns can take up to 8 weeks to process.
State-Level Child Tax Credits in 2025
In addition to the federal CTC, some U.S. states offer their own child tax credits to provide extra support to families.
Examples of State Programs
- California: Young Child Tax Credit (YCTC) offers up to $1,083 for families with children under 6.
- Colorado: Provides a refundable child tax credit for children under 6, based on income levels.
- New York: Empire State Child Credit offers $100 to $330 per child depending on age and income.
To find out if your state offers a child tax credit:
Visit your state’s Department of Revenue website.
Consult a certified tax preparer familiar with your state’s laws.
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