Child Tax Credit 2025 Update: What Families Need To Know

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The child tax credit (CTC) offers a partially refundable tax break for families with children under 17. For tax year 2025, the credit is worth up to $2,200 per child, including $1,700 that can be refunded. Here’s how it works and who can claim it.

Child Tax Credit: At a Glance

• Maximum credit: $2,200 per qualifying child
• Refundable amount: $1,700
• Ages that qualify: Children under 17 on Dec. 31, 2025
• Income phaseout: Begins at $200,000 for single parents and $400,000 for married couples filing jointly
• How to file: Use Form 1040 or 1040-SR and attach Schedule 8812

What Is the Child Tax Credit?

The CTC is a partially refundable tax credit that delivers up to $2,200 per qualifying child, with the first $1,700 of that as refundable. The CTC reduces the amount of taxes owed and can also put money in your pocket in the form of a tax refund. 

The additional child tax credit (ACTC) refers to the refundable portion of the CTC and taxpayers must have earned income of at least $2,500 to claim this portion.  

The credit for other dependents is a separate credit, also filed on Schedule 8812. It is a non-refundable credit offering up to $500 for each qualifying dependent over the age of 17, including adult children, elderly parents and other people you support financially. 

Who Qualifies for the Child Tax Credit

• Children under the age of 17 as of Dec. 31, 2025
• Offspring, stepchildren, eligible foster children, siblings, step-siblings, half-siblings, grandchildren, nieces and nephews of the taxpayer and/or their spouse — if married, filing jointly
• Must’ve lived with the taxpayer more than half the year
• Not paid for more than 50% of their own necessities — food, shelter, clothing, etc.
• Claimed as a dependent on taxpayer’s return
• Not filed a joint return that tax year or only filed to claim a refund of taxes withheld or estimated taxes paid
• Is a U.S. citizen, U.S. national or U.S. resident alien
• Has a valid Social Security number (SSN)
• Has not been claimed as a dependent by another taxpayer

What Changed for the Child Tax Credit in 2025

In 2025, the CTC increased to $2,200, up from $2,000 in 2024. It will adjust for inflation in 2026 and beyond under new tax laws.

The refundable amount remains the same, as do income thresholds for phase-outs. 

Child Tax Credit Income Limits

The table below shows when the child tax credit starts to phase out and when it’s no longer available, based on your modified adjusted gross income (MAGI).

How Much Is the Credit — and How Refundability Works  

• Taxpayers filing for the 2025 tax year can claim up to $2,200 per child through the CTC, which can reduce their tax bill to zero.
• If you qualify for the ACTC, you may receive a refundable credit of up to $1,700 per child, even if you don’t owe any taxes. To qualify, you must have at least $2,500 in earned income.
• The ACTC is calculated as 15% of your earned income above $2,500, up to the $1,700 maximum per child. Earned income generally includes wages from employment or self-employment, as well as certain disability payments.

Good To Know

Non-refundable credits can reduce your tax bill to zero, while refundable credits can result in a refund even if you don’t owe taxes.

Real-Life Examples: What Families Actually Get  

Imagine a two-income household — married, filing jointly — earning $250,000 with 14- and a 16-year-old. The 16-year-old has a job in a fast-food restaurant and is only filing their own return to claim their taxes withheld. The parents still provide 100% of both teens’ food, shelter, clothing, healthcare and other expenses.  

Their tax bill with above-the-line deductions and the standard deduction is $4,000. Because the couple falls below the $400,000 threshold, they can claim the full $4,400 — $2,200 for each child — to reduce their tax bill and claim $400 as a refundable credit. 

Here’s another example — a family has one child, age 3 and earns $420,000, filing jointly. They can only claim a credit of $1,200, which can be used to reduce their tax bill or as a refundable credit. 

Common Reasons Families Lose or Miss the Credit

• Child dependent does not have a valid SSN at the time of filing
• Child is 17 or older at the end of the tax year
• MAGI is above the allowable threshold
• Child is claimed as a dependent on someone else’s tax return, such as a divorced parent
• Person claiming the child did not pay for more than 50% of their support throughout the year
• Taxpayer does not have earned income of at least $2,500 to qualify for the ACTC

How To Claim the Child Tax Credit

Claiming the CTC and ACTC is fairly easy, whether or not you itemize deductions.

1. Fill out Form 1040 to find your adjusted gross income (AGI) on line 11a.
2. Bring that number over to Form 8812.
3. On line 4 of Form 8812, enter the number of qualifying children under age 17, along with their SSNs. Multiply line 4 by $2,200.
4. List other dependents on line 6 to claim the other dependent credit, if it applies.
5. Complete lines 9 through 12 to determine if you qualify for the CTC.
6. Once you’ve completed all steps on Form 8812, move your allowable credits to line 19 on your 1040 form.

You don’t need to share proof that you are responsible for more than 50% of the child’s care, but it’s a good idea to have this information available in case of an audit. 

Pro Tip

E-filing can simplify the math on your forms, reduce the odds of a mistake and potentially speed processing times. 

Child Tax Credit vs. Credit for Other Dependents

Children and other relatives who are 17 or older don’t qualify for the CTC. But you may be able to claim the ODC credit of $500 for other dependents.

The same rules apply, except the other dependent: 

• Does not need to be a relative
• Must live with you the entire year
• Cannot earn more than $5,200

To claim the credit for other dependents for an adult child, the child must: 

• Be under age 19, or a full-time student under age 24
• Live with you for more than half the year
• Not provide more than half of their own financial support

Planning Tips for Families Near the Income Cutoff

If you’re close to the income threshold that would disqualify you from claiming the CTC, careful tax planning throughout the year can help you qualify in 2026.

Consider: 

• Increasing pre-tax contributions to retirement plans like a 401(k) to the maximum limits
• Avoid capital gains
• Defer income, if possible
• Increase dependent care flexible spending account (FSA) contributions
• Increase health savings account (HSA) contributions

If you’re close to the threshold, small changes can have a big impact on your household’s AGI, since these moves reduce your AGI dollar-for-dollar above the line. 

Key Takeaways

• The CTC and ACTC put money in the pockets of families with children through a partially refundable tax credit.
• The credit phases out at $200,000 AGI for single filers and $400,000 for couples.
• For 2025, the CTC increased to $2,200 from $2,000 in 2024. The refundable portion remains the same at a maximum of $1,700.

Josephine Nesbit and Daria Uhlig contributed to the reporting for this article.

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