Raising kids isn’t cheap—but Uncle Sam is throwing a few more bones your way in 2025. The new tax law includes some adjustments to popular tax credits for parents.
Here’s what’s new:
👉 Child Tax Credit Bumps Up to $2,200
This is a $200 increase over last year. BUT—and this is important—not all families will feel it. The refundable part (the part that can boost your refund even if you owe nothing) is still capped at $1,700 per child. So, if your tax liability is already low, the extra $200 may not change your refund.
👉 Childcare Credit Now Up to $1,500 per Child
For working parents who pay for childcare, this credit got juiced. It now covers 50% of qualified expenses, up from 35%. That means up to $1,500 per child—though still only for two kids max, no matter how many you have in real life.
👉 Adoption Credit Goes Partially Refundable
If you adopted a child this year, the credit is now refundable up to $5,000. That means more real money in your pocket—even if you owe no tax. Please consider forwarding this email to someone you know who’s going through the adoption process or is a foster parent and could benefit from this information! May God bless all adopted parents and foster parents, as well as all adopted children and foster children.
These are some of the most powerful credits in the code. Don’t miss your chance to benefit from these new “upgrades” to these powerful tax credits.
Interested in reducing your tax burden in 2025 and beyond? Our tax reduction consulting service is designed to help you take full advantage of recent changes in tax law. To schedule a meeting with an Easy Tax Service Professional, please call 928-775-7000 Ext 0 and speak with our receptionist.