3 Changes Coming to the Child Tax Credit
Written by
Josephine Nesbit
Edited by
Angela Corry
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President Donald Trump has signed the “Big, Beautiful Bill” into law, a sweeping tax cut and spending package. The new law includes several changes to the Child Tax Credit (CTC), a tax benefit designed to help families offset the cost of raising children.
Here’s what families need to know about the new rules and how they may affect eligibility and benefit amounts.
Boosted Child Tax Credit
As of 2024, the CTC provided up to $2,000 per qualifying child under the age of 17, with up to $1,600 of that amount being refundable. The new law boosted the credit up to $2,200. However, the additional $200 only applies to the non-refundable portion of the credit, meaning it primarily benefits families with enough taxable income to use the full credit.
The White House announced that the new law delivers the largest tax cut in American history for middle- and working-class households. Meanwhile, left-leaning think tank The Center for Budget and Policy Priorities pointed out that the credit would leave out children whose parents work for low pay while giving higher-income families the full amount.
According to the Center on Poverty and Social Policy at Columbia University, a two-parent household with two children would need a minimum annual income of $48,000 to be eligible for the full credit.
Inflation Adjustment
Another change made to the CTC is that it will now adjust annually for inflation. This means the maximum credit amount, currently $2,200 per qualifying child, will increase each year based on changes in the cost of living. Prior to this update, the CTC remained flat at $2,000.
Social Security Number Requirement
Previously, families of children with Social Security numbers were eligible, regardless of their immigration status, but that has now changed.
The new law now restricts eligibility to parents or guardians who have a valid Social Security number. This will block non-citizens from claiming the credit, even if their children are American citizens.
According to a new study by Boston University School of Public Health and Drexel University Dornsife School of Public Health, this could strip eligibility from at least 2.6 million children in mixed-immigration status families.
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