How You Can Qualify For the Proposed $2,500 Child Tax Credit

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On May 22, 2025, the U.S. House of Representatives passed a bill that would, among other provisions, boost the child tax credit to as much as $2,500. This would represent an increase from the current $2,000 maximum, which itself was an increase over the $1,000 limit in place before 2017.

Although the bill still has to pass the Senate — which is not guaranteed — here’s what you’ll need to know about how to qualify for the newly enhanced credit.

Permanent $2,000 Credit

The current $2,000 child tax credit is set to expire at the end of 2025, and it will take an act of Congress to extend it. If the “Big, Beautiful Bill” doesn’t become law, the child tax credit will revert to a maximum of $1,000. However, if the bill passes, the new minimum of $2,000 will become permanent, with no set expiration date. The bill would also permanently index the maximum amount to inflation, beginning in 2029. 

Enhanced $2,500 Credit

From 2025 to 2028, the bill allows for a maximum credit of $2,500 that is not indexed to inflation. The idea behind the increase is that the current $2,000 amount has not been adjusted for inflation since it was enacted in 2017, making $2,500 a more appropriate level. If the $2,500 is not extended by future legislation, it will revert to the current $2,000 level. However, that amount will then be indexed to inflation annually.

How To Qualify

Here are the requirements to qualify for the child tax credit as outline in the Big, Beautiful Bill:

• The qualifying child must be 17 years or younger.
• The child must be a dependent and a U.S. citizen, national or permanent resident.
• Both the child and the parent must have a Social Security number.
• You must file a tax return to claim the credit.
• After the first $2,500 of income, the credit is calculated as 15% of AGI until it reaches the maximum and/or begins to phase out for higher-income taxpayers.
• The credit begins to phase out once your MAGI exceeds $400,000 for married couples filing jointly, or $200,000 for all other filers.
• Only $1,700 of the tax credit is refundable. This means that unless your tax liability exceeds the amount of the credit, you won’t qualify for the full amount.

The Social Security number requirement is one of the major new provisions of the bill, and it’s somewhat controversial as it may exclude some low-income families. 

Things To Consider

Although the “Big, Beautiful Bill” passed the House, it still must pass the Senate before it becomes law. It’s entirely possible that the legislation dies in the Senate or that it undergoes substantial revisions. It’s important to keep this in mind if you’re planning to take advantage of the credit. 

Critics of the bill also highlight that the lowest-income earners in America — the ones that could use the credit the most — won’t qualify for enhanced provisions of the child tax credit. This is because many lower-income earners don’t have any tax liability at all, which restricts them to the $1,700 refundable credit maximum. According to the Center on Budget and Policy Priorities (CBPP), joint filers would have to earn $48,550 to qualify for the full tax credit under the new bill, up from $36,800 under current law. 

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