Should You Opt Out of the Child Tax Credit?

For the 2025 tax year, you cannot opt out of monthly Child Tax Credit payments because there aren’t monthly advance payments anymore. The Child Tax Credit (CTC) is a tax benefit that can reduce your federal income tax and possibly increase your refund if you qualify. It's claimed when you file your tax return, and knowing how it works now can help you make the most of this benefit.

Key takeaways 

• You can’t opt out of the Child Tax Credit in 2025 because advance monthly payments have ended.
• The Child Tax Credit is claimed when you file your tax return, with up to $2,000 per qualifying child.
• Understanding current eligibility rules can help you plan your refund with confidence. 

What you need to know about the Child Tax Credit (tax year 2025)

The Child Tax Credit (CTC) helps eligible families reduce their federal income tax and, in some cases, receive part of the credit as a refund. For tax year 2025, the base credit is up to $2,000 per qualifying child under age 17, with up to about $1,700 refundable depending on your tax liability. These rules are based on current IRS guidance for the 2025 tax year.

What’s changed since the 2021 Child Tax Credit expansion 

The expanded Child Tax Credit and monthly advance payments offered in 2021 were temporary and are no longer available. For 2025:

• Monthly payments are no longer issued.
• The IRS Child Tax Credit Update Portal is inactive, so there’s no mechanism to opt out.
• The credit is now claimed only when filing your federal tax return.
• Credit amounts and refund rules have reverted to standard tax law.

Because of these changes, families do not need to opt out — there is simply nothing to unenroll from. 

Why this matters

Understanding these updates helps families plan for tax time and avoid confusion over outdated information. All eligible families claim the credit when filing their return, so the focus is on ensuring accurate documentation of dependents and Social Security numbers. 

According to IRS filing data, tens of millions of families claim the Child Tax Credit each year, making it one of the most widely used federal tax benefits for households with children. 

How the Child Tax Credit works today

The way the Child Tax Credit works today is more straightforward than it was in the past. Understanding who qualifies, how income limits apply, and when you receive the credit can help you set clear expectations at tax time.

Who qualifies?

To claim the Child Tax Credit on your 2025 return, you must meet the following requirements: 

• You must have a qualifying child under age 17 at the end of the year.
• The child must live with you more than half the year.
• You must list the child as a dependent on your federal tax return.
• Both you (and your spouse if filing jointly) and your child generally must have a valid Social Security number (SSN) to receive the credit.  

Income limits and phaseouts

For 2025, the CTC begins to phase out when your income exceeds about $200,000 if filing individually or $400,000 if filing jointly.

If your income is above that, you may see the credit reduced gradually.  

Refundable portion

Under current IRS rules, you may be able to receive part of the credit as a refund if it exceeds your tax amount owed (called the Additional Child Tax Credit). The IRS determines eligibility and refundability based on earned income and filing details.  

How you receive it

Unlike in 2021, you won’t get monthly payments throughout the year. Instead, eligible families claim the credit when they file their federal income tax return — typically by April of the following year.  

Because tax credits directly affect refunds and filing outcomes, even small rule changes can impact how much you receive — or when you receive it. That’s why understanding the current Child Tax Credit rules matters before you file. 

When might someone not want to claim the Child Tax Credit?

Even though you can’t opt out of the Child Tax Credit for 2025, there are a few situations where thinking strategically matters: 

1. Your tax filing situation

If your tax liability is zero or very low, you still might qualify for the refundable portion of the CTC, but you won’t get it until you file your return. Make sure your return is accurate and complete to maximize your benefit.  

2. Your income changes year-to-year

Your eligibility for the full credit amount can vary if your income rises or falls. You might want to talk with a tax professional if you expect major income changes.

3. SSN requirements

If your child or you don’t have required SSNs, you may not qualify for the federal CTC — but some states offer their own child-related tax benefits that do accept ITINs. Consider checking your state options.  

How families often plan around the Child Tax Credit

Because the Child Tax Credit is now received at tax time instead of monthly, many households factor it into annual planning — such as catching up on bills, rebuilding savings, or offsetting other tax costs. Understanding when the credit arrives can help families avoid relying on money they won’t receive until after filing. 

FAQs about the Child Tax Credit

This information is especially helpful for parents and caregivers filing a federal tax return for the 2025 tax year who want to understand how current Child Tax Credit rules apply to their household. 

Can I still get monthly Child Tax Credit checks?

No. The advance monthly Child Tax Credit payments were only available in 2021. All CTC benefits for 2025 must be claimed when you file your tax return.  

What form do I use to claim the CTC?

The IRS requires taxpayers claiming the Child Tax Credit to file Form 1040 and complete Schedule 8812, which calculates both the credit and any refundable portion.  

Do I have to be employed to qualify?

You don’t need to be employed, but some earned income may be required to qualify for the refundable portion of the credit.  

Does the CTC affect my refund timing?

If you claim refundable credits like the CTC, the IRS generally cannot issue that portion of your refund before mid-February due to fraud-prevention rules. 

More on taxes:

➢ Tax Guide: How to File Your Taxes
➢ 9 Things You Need to Know About Tax Refunds
➢ 8 Reasons Filing a Tax Extension Makes Sense
➢ Earned Income Tax Credit: What Is It and Who Qualifies? 

Sources

1. IRS: Child Tax Credit