Avoid These 2025 Mistakes to Keep Your Additional Child Tax Credit Refund

Every year, millions of U.S. taxpayers claim the Child Tax Credit to help ease the financial burden of raising children. For 2024 filings, you can receive up to $2,000 per child under 17, with an Additional Child Tax Credit (ACTC) refund of up to $1,700 available for eligible low-income families—even if you don’t owe taxes. However, even small errors on your tax return can delay or even cause you to lose this refund. This article explains the common mistakes to avoid in 2025 and offers practical advice to ensure you receive your full refund.

Understand the Basics

Before filing your taxes, it’s important to know the key details of the Child Tax Credit:

• Credit Amount:
  For 2024, the credit is up to $2,000 per qualifying child under the age of 17.
• Income Limits:
  The credit begins to phase out if your adjusted gross income exceeds $200,000 (if single) or $400,000 (if married filing jointly).
• Refundable Portion (ACTC):
  The Additional Child Tax Credit is refundable up to $1,700, meaning you could receive this amount even if you do not owe any taxes.

Common Mistakes That Could Cost You Your Refund

1. Not Verifying Child Eligibility

To claim the Child Tax Credit, your child must meet IRS requirements:

• The child must be under 17 years of age at the end of the tax year.
• The child must have lived with you for more than half the year.
• The child should not file a tax return independently.

Because these requirements can be confusing, consider using trusted tax software or hiring a qualified tax preparer to ensure you meet all eligibility criteria.

2. Missing the Child’s Social Security Number

A frequent error is filing your return without your child’s Social Security Number (SSN). For new parents, SSN applications for newborns can take one to six weeks. Filing without an SSN can result in missing out on the credit entirely. If you’re waiting on your baby’s SSN, it’s wise to request an extension for your tax filing. Remember, any taxes owed still need to be paid by the original deadline to avoid penalties.

3. Filing Too Early

While early filing is encouraged, be aware that the IRS will not issue ACTC refunds before mid-February. If you file your return before February 22, you can monitor your refund’s progress via the IRS “Where’s My Refund?” portal. Planning your filing date can help manage expectations and avoid unnecessary follow-ups.

Expert Advice for a Smooth Filing

According to Erin Collins, the National Taxpayer Advocate, many low-income families lose thousands of dollars by not knowing how to properly claim this credit. Here are three expert tips:

• Double-check eligibility: Verify that each child meets the IRS qualifications.
• Confirm all Social Security Numbers: Ensure you have all required SSNs before submitting your return.
• Consider professional help: Use reputable tax software or consult a tax professional to minimize errors.

• Read Also:
• Maximize Your 2025 Child Tax Credit Refund! Avoid Pitfalls
• How to Avoid Mistakes and Secure Your Additional Child Tax Credit Refund in 2025
• When Will You Receive Your TCA Florida April 2025 Payment Benefits?

Frequently Asked Questions

Q1: What is the Additional Child Tax Credit (ACTC)?
A: The ACTC is the refundable portion of the Child Tax Credit that can provide up to $1,700 per qualifying child, even if you don’t owe any taxes.

Q2: Who qualifies for the Child Tax Credit?
A: To qualify, your child must be under 17 at the end of the tax year, live with you for more than half the year, and not file a tax return independently, among other IRS criteria.

Q3: How much can I receive for the Child Tax Credit and ACTC?
A: For 2024 filings, you can claim up to $2,000 per child under 17, with the ACTC offering an additional refund of up to $1,700 for eligible low-income families.

Q4: What are the common mistakes that could cost me my ACTC refund?
A: Key mistakes include not verifying that your child meets the IRS eligibility requirements, filing without your child’s Social Security Number, and filing too early before the IRS starts issuing ACTC refunds.

Q5: What should I do if I don’t have my child’s Social Security Number yet?
A: If your child’s SSN has not arrived (which can take one to six weeks), consider requesting a filing extension. However, ensure any taxes owed are paid by the original deadline to avoid penalties.

Q6: How can I check the status of my refund?
A: Once you file your return (after mid-February, when ACTC refunds begin to be issued), you can track your refund through the IRS “Where’s My Refund?” portal.

Q7: What income limits affect the Child Tax Credit?
A: The credit begins to phase out if your adjusted gross income exceeds $200,000 for single filers or $400,000 for married couples filing jointly.

Q8: Is it advisable to use tax software or a tax professional when filing?
A: Yes. Tax software or a professional can help ensure you meet all eligibility requirements and avoid common errors, thereby maximizing your refund.

Final Thoughts

A small mistake on your tax return can cost you thousands of dollars in lost refunds. By understanding the requirements of the Child Tax Credit and taking steps to avoid common pitfalls, you can ensure you receive your rightful refund in 2025. Stay informed, check your details carefully, and don’t hesitate to seek professional guidance if you’re unsure about any part of the process.