Most taxpayers are aware that they can claim certain IRS tax credits on their income tax returns, but do they all know that two “small” mistakes when submitting could cost them their refund? All individuals or couples who file jointly should be aware of how filing with incorrect or missing information will mean that their submission won’t be processed with the desired outcome.
Taxpayers are looking forward to their IRS refunds
Tax season 2025 is in full swing and taxpayers who are due some form of refund from the Internal Revenue Service are looking forward to being paid out. Most already have some idea of what they plan to use the funds for, so they’ll be disappointed or inconvenienced if the refund doesn’t materialize as expected.
Millions of Americans claim tax credits from the IRS each year and the funds are a welcome payback for faithfully keeping up with taxes for the financial year. But these millions also need to be aware of how to claim correctly, otherwise, they could lose their credit or refund or have to wait longer for it.
There are two main mistakes that people make when submitting their returns that could affect their eligibility for this one credit in particular, which is explained below.
The Child Tax Credit and how it benefits American taxpayers
The Child Tax Credit (CTC) is the second-most common IRS credit in the United States, with only the Earned Income Tax Credit (EITC) going out to more people. In 2023, approximately 40 million people claimed the CTC, and this was only successfully paid out to tax filers who completed their returns without errors or oversights.
The CTC amount available this year is $2,000 per qualifying child. Of this, $1,700 is a refundable portion called the Additional Child Tax Credit (ACTC). This means that taxpayers are eligible for a credit against their taxes of $2,000 per child between the ages of birth and 17 years. If their tax liability is settled and there’s an amount left over, this will be paid out in cash up to $1,700.
The CTC decreases for taxpayers who earn more
Keep in mind, however, that the CTC amount decreases according to your adjusted gross income: if it exceeds $200,000 (for single tax filers) or $400,000 (for couples filing jointly), the credit amount goes down incrementally according to how far above the earning threshold they are.
2 Mistakes you must not make if you want your ACTC paid out
If you make either of these mistakes when filing your income tax return and claiming the CTC, it could jeopardize your chances of having the ACTC paid out, or you will have to wait longer for it.
Falling for one of the common tax scams could also risk your chances of receiving your tax refund.
Eligibility requirements for children under the CTC/ACTC
Your child (or minor dependent) must meet the criteria below set out by the IRS for you to be eligible to claim the Child Tax Credit. If they don’t and you mistakenly claim the CTC anyway, you will lose out.
- The child must have been under 17 years of age at the end of the tax year.
- The child must live with the taxpayer for at least half of the year.
- The child must not provide for their own living or file their own tax return.
Missing Social Security number
It’s vital to include the child’s correct Social Security number (SSN). This should have been received within six months of birth. If this is missing on the tax return, the credit won’t be granted. You may have an opportunity to rectify this, though, so it’s not all lost if you can submit the correct and valid SSN. However, the refund payment will be delayed in these cases.
If you realize that you don’t have this information, you should rather delay the return or ask for an extension rather than submit without the child’s SSN.
There’s another reason why your tax refund may be delayed, which is the upheaval in the Internal Revenue Service due to staff cuts implemented by Elon Musk and the Department of Government Efficiency (DOGE).