IRS is giving a tax credit of $2,000 in April 2025: Know how you can take advantage
In April 2025, the US income tax agency IRS (Internal Revenue Service) is giving a great opportunity, so that you can reduce your tax bill or get money directly as a refund. This includes two big tax credits – Child Tax Credit (CTC) and Recovery Rebate Credit (RRC).
If you have children or you missed the 2021 stimulus check, then this time you can claim up to $2,000 per child and $1,400. But keep in mind, for this you have to file your tax on time.
Topic | Details |
---|---|
Child Tax Credit (CTC) | Up to $2,000 per qualifying child under 17; up to $1,700 refundable through the ACTC. |
Recovery Rebate Credit | Up to $1,400 per eligible individual who missed the 2021 stimulus payment; must file a 2021 return by April 15, 2025. |
Earned Income Tax Credit | Up to $7,830 for low- to moderate-income workers in 2024. IRS Source |
Filing Deadlines | April 15, 2025: Deadline for 2024 tax returns and RRC via 2021 return. October 15, 2025: Extended deadline if filed for extension. |
Refund Options | Direct deposit (fastest) or mailed check, depending on tax filing method and selected preference. |
What is Child Tax Credit (CTC)?

This credit is for families who are taking care of children. With this tax credit you get tax relief and some amount can be received directly as a refund.
Key points:
- You can get up to $2,000 in credit per qualifying child.
- Up to $1,700 of that amount can be refunded if you don’t pay that much in taxes.
- The child must be under 17 years old (by the end of 2024).
- The child must be a U.S. citizen and have lived with you for at least 6 months of the year.
- If your annual income is less than $200,000 (single filers) or $400,000 (joint filers), you may be eligible for the full credit.
Example: A couple with two children and an annual income of $390,000 can get up to $4,000 in Child Tax Credit.
What is the Recovery Rebate Credit (RRC)?
If you didn’t receive the third stimulus check of 2021, you can still claim up to $1,400 through the Recovery Rebate Credit.
Who is eligible?
- Those who did not receive the full stimulus payment in 2021.
- Those whose income was eligible for 2021.
- Those who were not claimed as a tax dependent by someone else that year.
Deadline: Must file 2021 tax return by April 15, 2025.
Earned Income Tax Credit (EITC) – Another Chance
This credit is often missed, but it is one of the biggest tax reliefs.
How much can you get?
Up to $7,830 (for the 2024 tax year)
Who can claim it?
People with low or moderate incomes, whether or not they have children.
Income limit examples:
- Single and no children: Up to $18,591
- Married and three children: Up to $63,398
Step-by-step process for claiming IRS tax credits

1.Gather the necessary documents:
- W-2, 1099 forms, children’s Social Security numbers, and proof of living together
2. File online or with tax software:
- Use TurboTax, H&R Block or IRS Free File.
3. Choose direct deposit:
- This is the fastest way to get a refund.
4. Check the status on the IRS website:
- Use the “Where’s My Refund” tool.
How to take full advantage of tax credits?
- File on time so your refund isn’t delayed.
- Make sure all Social Security numbers and income are correct.
- Check your previous tax filings, too; you may have missed a credit or stimulus.
- Get free help from the IRS or consult a tax professional.
Frequently Asked Questions
Q: If I don’t work in 2024, will I be eligible for the Child Tax Credit?
A: No, this credit generally requires at least some income. But you may still be eligible for other refundable credits.
Q: What if my income changes in 2024?
A: Changes in your income may affect your eligibility for the tax credit. The IRS’s interactive tool can help you figure this out.
Q: Is this $2,000 credit new?
A: No, this is part of the existing Child Tax Credit that you can claim when you file your 2024 taxes (in 2025).
Q: What if I don’t file by April 15, 2025?
A: You can apply for an extension which will give you time till October 15, 2025. But for RRC (credit for 2021), you must file by April 15, 2025.