The Child Tax Credit amount for 2025

The Child Tax Credit is worth up to $2,000 per child under age 17 for the 2025 tax year. This is the same amount it has been since 2018. The credit reduces the federal income tax you owe dollar-for-dollar — if you owe $3,000 in tax and you have one may have access to child, the credit brings that down to $1,000.

The credit phases out as your income rises. If you are married filing jointly, the phase-out begins at $400,000 of modified adjusted gross income. If you file as single or head of household, it begins at $200,000. For each $1,000 (or fraction of $1,000) of income above that threshold, the credit reduces by $50.

Not all of the $2,000 is refundable — meaning you cannot receive more money back than you owe in tax. Up to $1,600 of the credit can be refunded to you as the Additional Child Tax Credit if you have little or no tax liability. The remaining $400 per child is non-refundable, so you only benefit from it if you have tax to pay.

Key Takeaways

  • The Child Tax Credit is $2,000 per may have access to child under age 17 in 2025, and it directly reduces your federal income tax bill.
  • The credit begins to phase out at $400,000 of income for married couples filing jointly and $200,000 for single filers.
  • Up to $1,600 per child can be refunded to you even if you owe no tax, but the remaining $400 is only useful if you have tax liability.
  • Your child must have a valid Social Security number, be a U.S. citizen, national, or resident alien, and live with you for more than half the year to count.

Who counts as a may have access to child

Your child must meet four conditions. First, they must be your son, daughter, stepchild, foster child, or a descendant of any of these (such as a grandchild). Second, they must be under age 17 at the end of 2025. Third, they must have a valid Social Security number. Fourth, they must be a U.S. citizen, national, or resident alien.

There is also a residency test: the child must live with you for more than half of 2025. Temporary absences for school, medical care, military service, or vacation count as time lived with you. If you and the other parent share custody, the child counts for the parent who has custody for the greater number of nights during the year.

You cannot claim the credit for yourself or for a child who files their own tax return claiming themselves as a dependent. If two parents both want to claim the same child, only one can do so on their return — the IRS will reject the duplicate claim.

How the phase-out works in practice

The phase-out is not a cliff. If you are married filing jointly and your modified adjusted gross income is $400,000, you get the full $2,000 per child. If your income is $401,000, the credit reduces by $50 (for the first $1,000 over the threshold). At $402,000, it reduces by another $50, for a total reduction of $100.

The IRS rounds up any fraction of $1,000. If your income is $400,500, you are treated as if you are $1,000 over the threshold, so the credit reduces by $50. If your income is $400,501, you are treated as $2,000 over, and the credit reduces by $100.

For a married couple with two children and $425,000 of income, the math works like this: $425,000 minus $400,000 equals $25,000 over the threshold. Divided by $1,000 (rounding up any fraction) equals 25. Multiplied by $50 equals $1,250 in total reduction. So $4,000 (the full credit for two children) minus $1,250 equals $2,750 in credit available.

The refundable and non-refundable portions

The credit has two parts that work differently. The non-refundable portion is $1,400 per child. This part only helps you if you owe federal income tax. If you owe $800 in tax and have one child, you can use $800 of the non-refundable credit, but the remaining $600 is lost — you do not receive it as a refund.

The refundable portion is up to $1,600 per child, claimed as the Additional Child Tax Credit on Form 8812. This part can be refunded to you even if you owe no tax. However, the amount you can receive is limited by a formula based on your earned income (wages, self-employment income, and certain other income). If your earned income is very low, the refundable credit may be less than $1,600.

The refundable credit is calculated as 15 percent of your earned income above $2,500, up to the $1,600 maximum per child. If you earned $20,000 and have one child, the calculation is ($20,000 minus $2,500) times 15 percent, which equals $2,625. Since that exceeds $1,600, you can receive the full $1,600 refund. If you earned $5,000, the calculation is ($5,000 minus $2,500) times 15 percent, which equals $375 — that is what you would receive.

How to claim the credit on your return

You report the Child Tax Credit on Form 1040, Schedule 8812 (for the refundable portion) and directly on Form 1040 itself (for the non-refundable portion). You will need each child's name, date of birth, and Social Security number. The IRS matches this information against Social Security Administration records, so errors or mismatches can delay your refund.

If you use tax software, it will walk you through the questions about each child and calculate the credit automatically. If you file by paper, you fill in the child information on the form and do the math yourself, or have a tax preparer do it.

The credit is claimed on the tax return you file for the year the child qualifies. If your circumstances change during the year — for example, your income rises significantly or a child turns 17 — you report the child's status as of December 31 of that year.

Advanced Child Tax Credit payments in prior years

From 2021 through 2022, the IRS sent advance payments of the Child Tax Credit to may be able to access families, usually monthly. These payments were based on 2020 tax returns and estimates of 2021 income. If you received advance payments, you must account for them when you file your 2025 return.

The advance payments reduced the credit you could claim on your return. For example, if you were may have access to to $2,000 per child and received $1,200 in advance payments, you could claim $800 on your return. If you received more in advance payments than you were may have access to to, you had to repay the difference when you filed your return — though there were income-based limits on how much you had to repay.

No advance payments have been sent since 2022. The credit is now claimed only on your annual tax return.

Income limits and special situations

There is no income floor for the Child Tax Credit — you can claim it at any income level. The phase-out is the only income-based limit. If you have very low income and little or no tax liability, you may still receive the refundable portion (up to $1,600 per child) if your earned income is above $2,500.

If you are claimed as a dependent on someone else's return, you cannot claim the Child Tax Credit for your own children. This situation sometimes arises when an adult child lives with a parent who claims them as a dependent.

If you are divorced or separated, only the parent with primary custody (more than half the nights) can claim the credit, unless that parent signs a form agreeing to let the other parent claim it. The form is Form 8332, and it must be attached to the non-custodial parent's return.

Frequently Asked Questions

Can I claim the credit for a stepchild or foster child?

Yes, if the child meets all other requirements: under age 17, valid Social Security number, U.S. citizen or resident alien, and living with you for more than half the year. A stepchild counts as your child for this purpose. A foster child placed with you by an authorized agency also counts.

What if my child turns 17 during 2025?

The child's age on December 31, 2025 is what matters. If they turn 17 on December 30, 2025, they do not count for the credit that year. If they turn 17 on January 1, 2026, they count for the full 2025 tax year.

Do I lose the entire credit if my income is over the phase-out threshold?

No. The credit phases out gradually at $50 per $1,000 of income above the threshold. You would need very high income to lose the entire credit. For a married couple with two children, the credit would be completely gone at around $480,000 of income.

What if I have no tax liability — can I still get money back?

Yes, through the refundable portion (Additional Child Tax Credit). You can receive up to $1,600 per child, but the amount depends on your earned income. If your earned income is below $2,500, you receive nothing. Above that, you receive 15 percent of the excess, up to $1,600 per child.

Can both parents claim the credit if we share custody equally?

No. Only the parent with custody for more than half the nights in the year can claim the credit. If you split nights exactly 50-50, the parent with the child's Social Security number in their records with the IRS can claim it, or you can use Form 8332 to agree that one parent claims it.