Child Tax Credit 2025 and 2026: How Much Is It and What's Changed?
Here's what you need to know about the federal child tax credit (CTC) for 2025 and 2026.
The federal child tax credit (CTC) is a key benefit that helps families offset the costs of raising children.
For years, data show that the CTC has provided tax relief to millions of households, with eligibility based on income, filing status, and the number of qualifying children. The credit is partially refundable, meaning some families can receive a refund even if their tax bill is low or zero.
For the 2025 tax year, the CTC is seeing changes as part of President Trump’s tax and spending bill, often referred to as the “big beautiful bill.” The legislation, enacted on July 4, 2025, increases the maximum credit from $2,000 to $2,200 per child and indexes the amount to inflation.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
However, new rules also tighten eligibility by requiring that both the parent (and spouse, if filing jointly) and the child have a Social Security number to claim the credit. This shift may affect some immigrant and mixed-status families.
Here’s what you need to know about the enhanced federal child tax credit and how the latest changes could impact your family’s finances.
Overview
How does the federal child tax credit (CTC) work?
The federal child tax credit is a key tax break that provides qualifying households up to $2,200 per child under 17.
While your eligibility depends on your income, child's age, and other factors — you may be able to claim this benefit even if you aren't required to file a tax return.
- As a partially refundable tax credit, if the CTC exceeds taxes owed, families may receive up to $1,700 per child as a refund for the 2025 tax year. This portion is called the Additional Child Tax Credit.
- Taxpayers may qualify for the full amount for each child if they earn $200,000 as an individual filer or $400,000 for joint filers. The credit phases out completely for incomes above that threshold.
The child tax credit has reportedly supported as many as 40 million U.S. families each year. This figure may be impacted due to new Social Security Number (SSN) requirements implemented by Trump’s new 2025 tax law. (More on that below).
Child Tax Credit 2025
What is the maximum Child Tax Credit amount per child for tax year 2025?
- The maximum child tax credit amount is up to $2,200 per qualifying child.
- The refundable portion of the CTC is up to $1,700 for the 2025 tax year (returns you'll file in early 2026).
Note: The refundable portion is indexed to inflation. So, it may increase slightly annually. But for your 2025 federal income tax return, the refundable portion remains unchanged from the previous year, while the maximum full credit amount increased by $200.
Additional Child Tax Credit
Is the Child Tax Credit refundable and what is the maximum refund amount?
Your child tax credit can lower your tax liability this year by up to $2,200 per qualifying child. However, this tax credit isn’t refundable.
That means if you owe less than $2,200 in taxes, you won’t get the unused portion of the credit as a refund.
However, the additional child tax credit (ACTC) allows you to receive up to a maximum of $1,700 per child as a refund this upcoming tax season. You can receive the maximum amount of the ACTC after your tax bill is reduced to zero.
If you want to find out your CTC amount before you file, you can calculate this using the IRS' Interactive Tax Assistant tool online.
Child Tax Credit 2026
As mentioned, the IRS recently announced 2026 inflation adjustments for the child tax credit and several other popular family tax credits.
So, for 2026 (returns you'll typically file in early 2027), the maximum credit will remain at $2,200 per qualifying child, and the refundable portion of the CTC will stay at up to $1,700 per child.
Going forward, due to the new GOP 2025 tax bill, the full CTC amount will be indexed to inflation, not just the refundable portion.
For more information, see: IRS Reveals Family Tax Credit Amounts for 2026.
How to Qualify for the CTC
Child tax credit qualifications
Not everyone will qualify for the child tax credit, and your income isn’t the only determining factor. The Trump administration just tightened eligibility requirements; now, parents and children must have a Social Security Number (SSN) to qualify for the credit in 2025.
The following must apply for your household to qualify for the CTC:
Age: The child must be under age 17 at the end of the year.
Relationship: The child must be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild).
Financial Support: Children cannot provide more than half of their financial support during the year.
Residency: Children claimed under the CTC must live with you for over half a year.
Dependent Status: The child must be claimed as a dependent on your tax return.
Citizenship: The child must have been a U.S. citizen, U.S. national, or U.S. resident alien during the tax year. For the first time, single parents who don’t have a Social Security number do not qualify. That means, if a parent does not have a SSN but a child does, that child does not qualify for the child tax credit.
Income: Parents or guardians can't exceed certain income limits. The credit amount is reduced depending on income until it phases out completely.
What are the Social Security Number (SSN) requirements for the Child Tax Credit?
New 2025 Trump/GOP tax law rules have tightened identification requirements.
For the Child: The child must now have a valid Social Security Number issued by the due date of the tax return. An Individual Taxpayer Identification Number (ITIN) isn't enough for the child to qualify for the $2,200 credit.
For the Parents: The taxpayer claiming the credit (and their spouse, if filing jointly) must also now have a valid SSN.
Mixed-Status Impact: Under the new tax law, if a parent uses an ITIN rather than an SSN, the family is generally ineligible for the CTC, even if the child has a valid SSN. In the case of a joint return, at least one spouse must have a valid SSN.
Child tax credit qualifying income
As mentioned, the child tax credit amount you can expect on your refund will depend on your modified adjusted gross income (MAGI).
Once your income reaches a certain limit, the credit amount will decrease or completely phase out.
The credit amount will be reduced by $50 for every $1,000 above your income cap.
For instance, your child tax credit will begin to phase out once your MAGI exceeds:
- $200,000 for a single filer, head of household, or qualifying widower.
- $400,000 for those married filing jointly.
- $200,000 for those married, filing separately.
Child tax credit for non-filers:
Just as the CTC has a phase-out threshold, it also has a phase-in amount.
To qualify for the credit, families must earn at least $2,500 per year, and the CTC then phases in a rate of 15% per dollar earnings over that amount.
Additionally, if you have three or more qualifying children, you may be eligible for other tax breaks like the Earned Income Tax Credit (EITC).
How to Claim the Child Tax Credit
Claiming the child tax credit
You can claim the child tax credit by entering your children or dependents on your federal income tax return (Form 1040). You’ll attach a completed Schedule 8812 (Credits for Qualifying Children and Other Dependents).
That IRS form will also help you determine how much of the CTC you’re eligible for and if you will receive additional tax credits. (Note: If you use tax software, the system will walk you through this with prompts. If you use a tax preparer, they will handle this for you.)
Related
-
$100 Fee Turning Away Visitors from National ParksDiscover how the new $100 fee will impact your experience visiting 11 of America's most popular parks.
-
Is Mechanical Breakdown Insurance Better Than an Extended Car Warranty?More insurers are starting to offer mechanical breakdown insurance to new car owners. What is it and should you buy it?
-
What to Do When You Bank Lowers Your APYWhy banks lower APYs, options you can explore when it happens and whether more rate cuts are on the horizon.
-
Are You Afraid of an IRS Audit? 8 Ways to Beat Tax Audit AnxietyTax Season Tax audit anxiety is like a wild beast. Here’s how you can help tame it.
-
States That Tax Social Security Benefits in 2026Retirement Tax Not all retirees who live in states that tax Social Security benefits have to pay state income taxes. Will your benefits be taxed?
-
10 Cheapest Places to Live in WashingtonProperty Tax Is Washington your go-to ski destination? These counties combine no income tax with the lowest property tax bills in the state.
-
To Retire Rich, Stop Chasing Huge Returns and Do This Instead, Courtesy of a Financial PlannerSaving a large percentage of your income, minimizing taxes and keeping spending in check can offer a more realistic path to retiring rich.
-
3 Major Changes to the Charitable Deduction for 2026Tax Breaks About 144 million Americans might qualify for the 2026 universal charity deduction, while high earners face new IRS limits. Here's what to know.
-
I'm a Wealth Adviser: These 10 Strategies Can Help Women Prepare for Their Impending Financial PowerAs women gain wealth and influence, being proactive about financial planning is essential to address longevity and close gaps in confidence and caregiving.
-
I'm a Financial Planning Pro: This Is How You Can Stop These 5 Risks From Wrecking Your RetirementYour retirement could be jeopardized if you ignore the risks you'll face later in life. From inflation to market volatility, here's what to prepare for.
-
Time to Close the Books on 2025: Don't Start the New Year Without First Making These Money MovesAs 2025 draws to a close, take time to review your finances, maximize tax efficiency and align your goals for 2026 with the changing financial landscape.
