As many Americans have already filed and closed the books on the 2024 tax season, now is a good time to start looking ahead to the 2025 tax year. No matter your tax situation, you're likely looking for ways to minimize your taxes owed and keep more of your hard-earned money in your pocket. The good news? Many families could qualify for a number of tax credits for the 2025 tax year that can offset the costs of childcare, housing, education and more.
So, which family tax credits should you be aware of in 2025 and heading into 2026? From the Earned Income Tax Credit to the Child Tax Credit, we're covering some key options below — along with some qualifying criteria that can help you determine which credits you may qualify for.
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Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is available at the federal level, and is designed to help families falling within certain income levels minimize their taxes owed. More specifically, this refundable credit allows families to lower their tax liability while receiving up to $8,046 for the 2025 tax year (that's a notable increase of more than $300 compared to 2024).
In order to qualify for the EITC in 2025, your total household income must fall at or below the limit imposed by the IRS. This specific limit can vary based on the total number of dependents in your household, as well as other factors (including your filing status). Still, those who qualify (even those with no children or dependents) could receive a refundable credit in the coming tax year.
For 2025, it is also worth noting that the IRS will no longer approve the EITC for households with investment income exceeding $11,950 for the entire year.
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Adoption Tax Credit
For families that adopted a child in 2025, a notable credit worth looking into is the Adoption Tax Credit. Specifically, this federal tax credit is meant to help offset some of the costs associated with adopting a child. Unlike the Earned Income Tax Credit, the Adoption Tax Credit is non-refundable — meaning it can reduce your tax liability to zero, but no refund will be issued for anything left over. Remaining funds from this credit, however, can be carried forward to another year's return.
More specifically, the Adoption Tax Credit for 2025 can be worth as much as $17,280 (an increase of around $350 compared to the 2024 tax year). However, the total amount of the credit is based on your income, and there are exceptions. A “qualified child” under this credit refers to somebody under the age of 18 who is physically or mentally incapable of caring for themselves. Qualifying expenses for this credit may include:
- Adoption and related attorney fees
- Court expenses
- Travel costs related to the adoption
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Child and Dependent Care Tax Credit
Another tax credit worth looking into for many families is the Child and Dependent Care Tax Credit (CDTC), which is designed to help offset some of the costs related to paying for childcare. This includes such expenses as:
- Daycare
- Preschool
- Before- and after-school programs
- Babysitters and nannies
Basically, any expense related to paying another person to care for a child or dependent so that a taxpayer can work qualifies under the CDTC. Like the Adoption Tax Credit, the CDTC is non-refundable — but qualifying families for the 2025 tax year may be eligible for a credit of up to $3,000 for one qualifying person or $6,000 for two qualifying persons.
This credit is largely based on adjusted gross income, with taxpayers earning between $0 and $15,000 receiving the highest credits. And though there is no income limit on who can receive this credit, the lowest amounts are disbursed to those earning more than $43,000 per year.
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Child Tax Credit
Perhaps the credit that most families are wondering about in 2025 is the Child Tax Credit, which has been in the news recently as Republican lawmakers have aimed to increase the credit amount. As of June 2025, the IRS has announced that the Child Tax Credit's refundable portion will be $1,700 for this tax year — remaining unchanged from 2024. However, time will tell whether a proposed increase to $2,000 will be passed.
In order to qualify for this credit, taxpayers need to have at least one qualifying child with a Social Security number who will be under the age of 17 by the end of the tax year.
Taxpayers should also keep in mind that, in some states, they may be eligible for a child tax credit at the state level as well.
Get More Help with Your Tax Planning
Navigating the world of family tax credits can be confusing, but by being aware of these common credits and their eligibility requirements, you can determine which may apply to your situation. In the meantime, if you have questions or need further guidance when it comes to claiming a tax credit, you can always consult with an experienced and knowledgeable tax planner or tax preparation specialist.
If you have any questions or would like additional information, please contact our tax department.