The IRS has started sending out letters to millions of families about the Child Tax Credit, and if you have kids at home, this is one piece of mail you should not toss in the recycling bin.
The letters are part of an annual push to make sure eligible families actually claim the money they are owed.
The credit can be worth up to $2,000 per qualifying child, and up to $1,700 of that can come back to you as a refund even if you owe no federal tax.
That refundable portion is the part many families miss.
Here is the catch that trips people up every year: you generally have to file a tax return to get the money, even if you earn little or nothing.
Some parents assume that because their income is low, filing is pointless.
That assumption can cost them a four-figure check.
The letters going out now are meant to flag families who may qualify but did not claim the credit, or who may have missed a recent change.
If you get one, treat it as a nudge, not junk mail.
For 2025 returns being filed in early 2026, the credit stays at $2,000 per qualifying child under 17.
There is also a $500 credit for other dependents, which can cover older kids, college students, or relatives you support.
Income limits still apply, and the credit starts phasing out once your adjusted gross income passes $200,000 for single filers or $400,000 for married couples filing jointly.
The IRS typically cannot issue refunds that include the Earned Income Tax Credit or the Additional Child Tax Credit before mid-February.
So if your refund feels late, that may be the reason, not a problem with your paperwork.
A few practical steps can protect your money.
Double-check that you and your ex-partner are not both claiming the same child, since that is one of the most common reasons a return gets flagged.
Make sure your direct deposit info is correct.
And if you moved recently, update your address so any IRS letter actually reaches you.
The IRS does not text you asking for bank details to "release" your credit, and it does not demand payment by gift card.
If someone calls claiming you must pay to unlock child tax credit money, hang up.
If you are unsure whether you qualify, free filing help is available through IRS Free File and the Volunteer Income Tax Assistance program.
Both can walk you through the paperwork at no cost.
Our take: the Child Tax Credit is one of the few breaks that puts real money back in working families' pockets, and it is sitting there unclaimed for too many households.
If a letter shows up, spend twenty minutes on it.
Final Thoughts
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