Mistake 3: Overlooking the Expanded Child Tax Credit

If you have children under age 17, pay close attention. The “One Big Beautiful Bill Act” increased the maximum Child Tax Credit (CTC) for the 2025 tax year. If you rely on old numbers or outdated software, you might underclaim what you are owed.

• New Maximum Credit: Up to $2,200 per qualifying child (up from $2,000 previously).
• Refundable Portion: Up to $1,700 is refundable (the “Additional Child Tax Credit”), meaning you can get this money back even if you owe zero income tax.

The Mistake: Failing to double-check the ages of your children. A child must be under age 17 at the end of 2025 to qualify for the full credit. If your child turned 17 during the year, they qualify for the smaller “Credit for Other Dependents” ($500), not the full $2,200.