The Child Tax Credit begins January 1, 2025, but payment timing depends on how you claim it

The Child Tax Credit for 2025 becomes available on January 1, 2025. However, when you actually receive money depends on your choice: you can claim the full credit on your 2025 tax return (filed in early 2026), or you can receive advance monthly payments starting in July 2025 if you enroll in the IRS program. Most families do one or the other, not both.

The credit itself is worth up to $2,000 per child under 17. If you have not yet filed your 2024 tax return, the IRS uses that return to calculate your 2025 advance payments. If you have not filed in years, you may need to file a 2024 return first to be included in the advance payment program.

Key Takeaways

  • Advance monthly payments of the Child Tax Credit run from July through December 2025 if you enroll; the remainder comes when you file your 2025 tax return in 2026.
  • You do not have to take advance payments—you can wait and claim the full credit on your tax return instead, which some families prefer for simplicity.
  • The IRS uses your most recent tax return to calculate advance payment amounts, so filing your 2024 return before the deadline helps ensure accuracy.
  • You can change your advance payment amount, pause payments, or opt out entirely through the IRS Child Tax Credit Update Portal at any time during the year.
  • If your income changes significantly in 2025, you may owe money back when you file your return, so keeping records of advance payments matters.

How advance payments work from July through December 2025

If you choose to receive advance payments, the IRS sends money monthly from July 2025 through December 2025. The amount depends on your 2024 income and the number of children under 17 in your household. Payments go directly to your bank account or by check, depending on how you filed your 2024 return.

The advance payment is not the full credit. It covers roughly half of what you are may have access to to based on your income. The other half comes when you file your 2025 tax return in early 2026. For example, if you are due a $2,000 credit per child, you might receive about $1,000 across the six months of advance payments, then claim the remaining $1,000 when you file.

You do not have to enroll in advance payments. If you prefer to receive the entire credit at once on your tax return, you can skip the advance program and claim it all in 2026. This route is simpler if your income is unstable or if you want to avoid any possibility of owing money back.

What happens if your income changes during 2025

The IRS calculates your advance payment based on your 2024 tax return. If your 2025 income is significantly higher than 2024, you may receive more in advance payments than you are actually may have access to to. When you file your 2025 return in 2026, you will have to repay the overpayment.

The amount you must repay depends on your final 2025 income. If your income stays roughly the same, there is usually no repayment. If it rises substantially—such as from a new job or bonus—the repayment can be several hundred dollars. This is why tracking your advance payments throughout the year matters.

You can adjust or pause your advance payments at any time using the IRS Child Tax Credit Update Portal. If you expect your income to rise, you can reduce your monthly payment amount or stop receiving advances altogether. This prevents overpayment and the need to repay later.

How to enroll in advance payments or manage your account

Enrollment in advance payments is automatic if you filed a 2024 tax return and the IRS has your current banking information. You do not need to do anything—payments will arrive in July 2025. If you filed by mail or your address has changed, check your mail in June 2025 for a notice from the IRS confirming your payment details.

To change your payment amount, pause payments, or opt out entirely, use the IRS Child Tax Credit Update Portal at irs.gov. You will need to log in with your IRS online account credentials. The portal lets you update your income estimate, add or remove children, change your banking information, or stop advance payments altogether. Changes take effect within a few days.

If you did not file a 2024 tax return, you can still claim the Child Tax Credit on your 2025 return filed in 2026. However, you will not receive advance payments in 2025. Filing your 2024 return before the deadline (usually April 15) allows the IRS to include you in the advance payment program for 2025.

Income limits and phase-out rules for 2025

The Child Tax Credit begins to reduce if your income exceeds certain thresholds. For 2025, the phase-out starts at $400,000 for married couples filing jointly and $200,000 for single filers. The credit reduces by $50 for every $1,000 (or fraction thereof) of income above these limits.

This means if you earn $401,000 as a married couple, your credit is $50 less per child than the full $2,000. The reduction continues as income rises. At very high incomes, the credit may be eliminated entirely, though this affects only a small percentage of families.

Your 2024 income determines your advance payment amount for 2025. If you expect your 2025 income to be significantly different, you can update your estimate in the IRS portal to adjust your monthly payments.

What documents you need to receive the credit

To claim the Child Tax Credit, you need a valid Social Security number for each child you are claiming. The child must be under 17 at the end of 2025, a U.S. citizen, national, or resident alien, and claimed as a dependent on your tax return. You also need proof of the child's relationship to you (birth certificate, adoption papers, or court order).

For advance payments, the IRS uses information from your 2024 tax return. If your return is incomplete or missing information, the IRS may not calculate your payment correctly. If you have questions about what the IRS has on file, you can contact the IRS directly or use the Child Tax Credit Update Portal to verify your information.

Keep records of all advance payments you receive in 2025. The IRS will send you a notice showing the total amount paid. You will need this when you file your 2025 return to ensure the IRS credits the payments correctly against your final tax liability.

Frequently Asked Questions

Do I have to take advance payments, or can I wait until I file my tax return?

You can choose either option. Advance payments run July through December 2025, but you can opt out and claim the full credit on your 2025 tax return instead. Some families prefer waiting because it is simpler and avoids the risk of owing money back if income changes. Use the IRS Child Tax Credit Update Portal to decline advance payments.

What if I did not file a 2024 tax return?

You will not receive advance payments in 2025, but you can still claim the Child Tax Credit on your 2025 return filed in 2026. Filing your 2024 return before the deadline allows the IRS to include you in the advance payment program. If you need help filing past returns, contact a local tax preparation service or the IRS directly.

Can I change my advance payment amount during the year?

Yes. Log into the IRS Child Tax Credit Update Portal and adjust your income estimate or payment amount. You can also pause or stop payments entirely. Changes usually take effect within a few days. This is useful if your income changes or if you want to avoid overpayment.

What happens if I receive too much in advance payments?

If your 2025 income is higher than your 2024 income, you may owe some of the advance payments back when you file your 2025 return. The amount depends on how much higher your income is. You can reduce this by updating your income estimate in the IRS portal before the end of the year.

How do I know if my payment arrived?

The IRS sends payments by direct deposit or check based on how you filed your 2024 return. If you enrolled in advance payments, watch for deposits starting in July 2025. The IRS will mail a notice showing the payment schedule and amount. If a payment does not arrive, contact the IRS or check the Child Tax Credit Update Portal for your payment status.