There's no reason to wait to file your taxes, especially if you're expecting to get money back from the IRS in the form of a tax refund. If you're a parent looking to claim the child tax credit, however, you might be aware that it can delay your refund in some cases, but with less than a month left until Tax Day, you might not know if that's even still an issue.
The child tax credit allows parents to lower the amount they owe in taxes each year, depending on how many eligible children they can claim as dependents, in an effort to help manage the costs of raising a family.
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Under the current rules, the credit can both decrease the amount you might owe in taxes down to $0 and increase the amount that you might get back as a refund. However, it's that latter possibility, known as a "refundable tax credit," that might result in your not getting your full tax refund right away.
Read on to find out why and when you'll get your tax refund if you've already filed and claimed the child tax credit. For more on tax season, find out if your state offers its own child tax credit and how to track your tax refund from the IRS to your bank account.
How much money could I get from the child tax credit?
Under the current federal-level credit, you can receive up to $2,000 per dependent child under age 17 from the child tax credit. The child tax credit is nonrefundable, meaning you can't receive that $2,000 if it's more than the taxes that you owe.
However, if you claim the child tax credit and have no tax liability, you can get $1,700 per child back in a separate tax break known as the additional child tax credit. If that happens, you'll run into a slight potential delay.
The credit's current value was set as a temporary expansion by the Tax Cuts and Jobs Act of 2017 and will last through the end of 2025. If Congress does not pass another expansion by then, it will revert from the current $2,000 to the value set by permanent law: $1,000 per dependent child.
When will I get my refund if I claim the additional child tax credit?
An example of the schedule 8812 form you'll complete to claim the child tax credit.
If you are claiming the additional child tax credit, the IRS is required by law to not release the money for your tax refund until the middle of February, as a check on fraud. The IRS says that if you file online with direct deposit and claim the earned income tax credit or additional tax credit, you should receive your tax refund by March 3, 2025. So at this point in tax season, if you still need to file your return you shouldn't have any delay to worry about as far as the child tax credit goes.
None of that would have applied to you if you only opted for the standard child tax credit, the nonrefundable one that merely lowers your tax due. In that case, you wouldn't be owed any extra money due to the credit and so wouldn't be subject to the rules about checking for for fraud.
For more to prepare yourself for tax season, find out what the future might hold for home energy tax credits.