Child Tax Credit

The Child Tax Credit is a federal tax benefit designed to help families with dependent children. For every qualifying child under age 17 (at the end of the tax year), eligible families may reduce their federal income tax liability by an amount up to the credit’s limit.

If the credit amounts to more than your tax liability, part of it may be refundable (if you qualify) through what is called the Additional Child Tax Credit (ACTC).

How Much Is It for 2025?

For the 2025 tax year (returns typically filed in 2026) the generally accepted headline figures are:

• Up to $2,200 per qualifying child.
• The refundable portion (ACTC) is up to $1,700 per qualifying child.

So if you have one qualifying child, you might reduce your tax bill by as much as $2,200 (assuming you meet all eligibility criteria) and, if your tax liability is low or zero, you might receive up to $1,700 as a refund from this credit (depending on your income and other factors).

Changes From Previous Years & What to Know

• Prior to 2025 (post-2017 changes), the standard maximum was $2,000 per child under many rules.
• In 2025 the increase to $2,200 is part of a law that made the $2,000 (and the rules around it) more permanent, and also indexed it for inflation moving forward.
• The phase-out thresholds: For single filers the limit is $200,000 of modified adjusted gross income (MAGI); for married filing jointly it’s $400,000. Above those income levels the credit begins to be reduced.

Who Qualifies?

General eligibility requirements include (for the 2025 CTC):

• The child must be a “qualifying child”: under age 17 at the end of the tax year, a dependent, living with you for more than half the year, not providing more than half of their own support, and a U.S. citizen, U.S. national or U.S. resident alien.
• The taxpayer (you) must meet income and filing status conditions: if your MAGI is above the threshold, the credit is reduced.
• The child must have a valid Social Security Number (SSN) that is valid for employment by the due date of your tax return.
• Only one taxpayer may claim the credit for the child.

How the Refundable Portion Works (ACTC)

• Even if your tax liability is low or zero, you might still receive a refund from the credit if you qualify for the refundable part. For 2025 this refundable maximum is $1,700 per qualifying child.
• The refundable amount is typically based on a formula tied to your earned income above a base amount (for previous years). It’s wise to check instructions when filing.
• The actual amount you get may be less than the full $1,700 if your earnings or other factors restrict it.

Important Things to Watch

• Phase-out: If your income exceeds the thresholds ($200K single / $400K married filing jointly), your credit starts to reduce by $50 for each $1,000 of income above the threshold.
• Valid SSN: Both you (or at least one of you if married filing jointly) and the child must meet the SSN/identity requirements. Some recent rules require stricter SSN usage.
• Filing required: You must file a tax return to claim the credit, even if you don’t owe any tax.
• Not the same as payments: Under the 2021 temporary expansion, some families received monthly advance payments of the child tax credit. However, for 2025 the credit is applied when you file your tax return (not through monthly payments).
• Future changes: The $2,200 limit is set to be indexed for inflation-starting in 2026. However, tax law is subject to change, so future years might see adjustments.

Example Scenario

Let’s say you’re a single filer with one child under age 17. Your MAGI is under $200,000 (so you qualify for full amount). You file your 2025 return in 2026. You could claim the full $2,200 credit. If you owe little to no tax, you might receive up to $1,700 as a refund (depending on your earned income and other tax credits).

If instead your MAGI is, say, $210,000, you may see a reduced credit (because you’re above the $200K threshold) — the calculation would reduce your maximum credit amount accordingly.

The Child Tax Credit for 2025 offers meaningful relief for families raising children under age 17. With a maximum of $2,200 per qualifying child and up to $1,700 refundable potentially, it can make a real difference. However, the actual benefit depends on your income, tax liability, and whether you meet all the eligibility rules.

If you’re a parent or guardian, it’s wise to:

• Ensure you and your child meet the eligibility criteria (age, SSN, residency)
• Keep an eye on your income levels relative to the phase-out thresholds
• File your taxes on time and correctly claim the credit via the proper forms (e.g., Form 1040 and Schedule 8812)
• Consider consulting a tax professional if your situation is complex (e.g., multiple children, divorced/separated, low income, mixed-status household).
  

  Frequently Asked Questions (FAQs) about the 2025 Child Tax Credit (CTC)

  1. How much is the Child Tax Credit for 2025?

  The Child Tax Credit for 2025 is up to $2,200 per qualifying child under the age of 17. The refundable portion — known as the Additional Child Tax Credit (ACTC) — is up to $1,700 per qualifying child.

  2. Who qualifies for the Child Tax Credit in 2025?

  To qualify, you must:

  • Have a qualifying child under 17 at the end of 2025.
  • The child must be your dependent, live with you for more than half the year, and have a valid Social Security Number (SSN).
  • You must have earned income and be a U.S. citizen or resident alien.
  • Your Modified Adjusted Gross Income (MAGI) must be under $200,000 (single) or $400,000 (married filing jointly) to receive the full credit.

  3. What happens if my income is higher than the limit?

  If your income exceeds $200,000 (single) or $400,000 (married filing jointly), your Child Tax Credit will be reduced by $50 for every $1,000 of income above those thresholds.

  4. Is the 2025 Child Tax Credit refundable?

  Yes, it can be partially refundable. Even if you owe no federal income tax, you might still receive up to $1,700 per child as a refund through the Additional Child Tax Credit (ACTC).

  5. How do I claim the Child Tax Credit for 2025?

  You must file a 2025 federal income tax return (Form 1040) and include Schedule 8812 to claim the credit. The IRS will determine whether you qualify for the refundable portion.

  6. Can I get monthly advance payments like in 2021?

  No. The advance monthly payments program from 2021 has ended. For 2025, the credit will be applied when you file your tax return, not through monthly deposits.

  7. What if my child was born in 2025?

  You can still claim the Child Tax Credit for your 2025-born child — as long as the child meets all eligibility criteria (U.S. citizen/resident, valid SSN, dependent, etc.) by December 31, 2025.