There is $1 billion in unclaimed tax refunds from 2021, according to the United States Internal Revenue Service (IRS). There’s less than a month left for taxpayers to claim the Child Tax Credit they qualified for in that year before the opportunity disappears. The US Department of the Treasury has resources available on its website to assist qualifying parents or guardians who neglected to claim their credits when filing their 2021 tax return, and who knows? You may get a payment soon that you were unaware you were due for.
$3,600 or $3,000 CTC for 2021: How long does it take to be credited?
The Child Tax Credit (CTC) for 2025 is $2,000 per child, and of that, $1,700 is refundable under the Additional Child Tax Credit (ACTC). However, in 2021, the amounts were higher, and the IRS reports that roughly $1 billion in unclaimed tax refunds remain from that year. The tax agency only allows three years for taxpayers to realize they can claim, so this is your last chance.
Expect to be credited within 21 days, barring complications with tax returns
For those income tax filers who have claimed the 2021 CTC and want to know when they’ll be paid out, there is no specific date available. However, there is a time frame indication of 21 days, meaning that after filing your income tax return electronically, the CTC should be credited within three weeks. If you filed a paper return, the waiting period is up to six weeks. If your return is flagged by the IRS, expect it to take longer.
Eligibility criteria for the 2021 $3,600 or $3,000 Child Tax Credit
The CTC in 2021 was expanded under COVID-19 conditions. This meant that more people had access to the funds at a time when the economy was under pressure. Many people were losing employment, businesses were suffering due to no or low turnover, and the rate of inflation increased. The funds from the IRS were a welcome boost for Americans under stress.
Expanded 2021 CTC requirements
- The age limit was under 18 years.
- The credit was issued to individuals even if they had no income, and it was fully refundable.
- The income limits were $75,000 for single taxpayers, $112,500 for heads of household, and $150,000 for married couples filing their taxes jointly, meaning the credit amount would start to drop for those earning above the threshold.
Eligibility criteria for the 2025 $2,000 CTC
Moving away from the 2021 Child Tax Credit, let’s look at the eligibility for the CTC in 2025. The expanded criteria no longer apply as these were applied only during special circumstances under COVID-19 conditions. However, there are still millions of American parents and guardians with minors in their households who will benefit greatly from the $2,000 CTC or the refundable ACTC of $1,700. These are the 2025 eligibility conditions:
- Parents or guardians must earn below the income threshold to qualify for the full amount.
- Parents must live in the US for more than half the year.
- Children must have been below 17 years old at the end of the tax year.
- The child must have a provable, close family relationship to the claimant and live with them for at least half the year.
- The child must not provide their own financial support.
- The child must have a valid Social Security number.
- The child must be listed as a dependent on the tax return.
The IRS has resources available on its website to assist with tracking refunds, with the main one being the “Where’s My Refund?” tool. Taxpayers waiting for credits or refunds, or those busy with their returns ahead of the April 15, 2025, tax filing deadline, are reminded to only rely on official, trustworthy sources of information and beware of scammers using the tax season as an opportunity to steal from taxpayers or the United States Internal Revenue Service. Don’t trust everything you read on social media.