The 2025 Child Tax Credit is $2,000 per child under 17

The Child Tax Credit for 2025 remains $2,000 for each may have access to child under age 17 at the end of the tax year. This is the same amount that has been in place since 2018. The credit reduces the federal income tax you owe dollar-for-dollar — meaning a $2,000 credit cuts your tax bill by $2,000, not by a percentage of your income.

The credit is not the same as a deduction. A deduction lowers the income amount that gets taxed. A credit directly reduces what you owe. That makes the credit more valuable to most families, especially those with lower or moderate incomes.

You claim the Child Tax Credit on your federal tax return using Form 1040 and Schedule 8812. The IRS matches the children you list to their Social Security numbers, so you will need those before you file.

Key Takeaways

  • The 2025 Child Tax Credit is $2,000 per child under age 17, and it reduces your federal tax bill directly.
  • Your income determines whether you receive the full $2,000 or a reduced amount, with phase-out beginning at $400,000 for married couples filing jointly and $200,000 for single filers.
  • Up to $1,600 of the credit can be refundable, meaning you may receive money back even if you owe no tax, though the refundable portion is limited by your earned income.
  • You must have a valid Social Security number for each child and claim them as dependents on your return to receive the credit.
  • The credit amount and rules are set to change after 2025 unless Congress acts, with the amount dropping to $2,000 and income limits shifting in 2026.

Income limits and how the credit phases out

The full $2,000 credit is available only if your income stays below a certain threshold. Once your income exceeds that threshold, the credit begins to shrink by $50 for every $1,000 (or fraction thereof) over the limit.

For 2025, the income thresholds are $400,000 for married couples filing jointly, $200,000 for single filers, and $200,000 for heads of household. These thresholds are adjusted each year for inflation, so they may be slightly different from prior years.

Example: A married couple filing jointly with two children earns $410,000. They are $10,000 over the $400,000 threshold. The credit reduces by $50 × 2 (rounding up the fraction) = $100. Their credit is $4,000 − $100 = $3,900 instead of the full $4,000.

If your income is very high, the credit can phase out completely, though this happens only at income levels well above the thresholds for most families.

The refundable portion and how it works

Part of the Child Tax Credit is refundable, which means you can receive money back from the IRS even if you owe no federal income tax. This refundable portion is called the Additional Child Tax Credit or ACTC.

For 2025, up to $1,600 of the $2,000 credit per child can be refundable. However, the amount you can actually receive as a refund is limited by your earned income. You must have at least $2,500 in earned income to receive any refundable portion, and the refund cannot exceed 15 percent of your earned income above $2,500.

Example: You have one child and earned $20,000 in wages. Your earned income above $2,500 is $17,500. Fifteen percent of $17,500 is $2,625. The maximum refundable credit you can receive is $1,600 (the cap per child), so you would receive the full $1,600 refund. If you owed $300 in tax, your total benefit would be $1,900 ($300 tax reduction plus $1,600 refund).

If you have no earned income or very low earned income, you may not receive the refundable portion, though you can still claim the non-refundable part of the credit to reduce any tax you owe.

Who qualifies as a child for this credit

The child must be your son, daughter, stepchild, foster child, sibling, or descendant of any of these (such as a grandchild or niece). They must be under age 17 at the end of the tax year, a U.S. citizen, national, or resident alien, and claimed as a dependent on your return.

The child must have lived with you for more than half the tax year. Temporary absences for school, medical care, military service, or detention do not count as breaking this requirement.

Each child must have a valid Social Security number. If a child does not have a number, you cannot claim the credit for that child. You will need to provide the number on your tax return, and the IRS will verify it matches the child's name and date of birth.

What happens if you have no tax liability

If your total tax bill for the year is zero — meaning you owe no federal income tax — you can still benefit from the Child Tax Credit, but only through the refundable portion (the Additional Child Tax Credit). The non-refundable part of the credit cannot reduce a tax bill below zero.

This is why the refundable portion matters most to lower-income families. A family with little or no tax liability can still receive a refund check based on the ACTC, subject to the earned income limits described above.

If you have a small tax bill and a large credit, the credit will first eliminate your tax bill, and then the refundable portion will produce a refund for any credit amount left over.

Changes coming after 2025

The current $2,000 credit amount and the income thresholds are set by law to expire after December 31, 2025, unless Congress extends them. Starting in 2026, the credit is scheduled to revert to $1,000 per child unless new legislation is passed.

Additionally, the refundable portion rules may change. The current rules allowing up to $1,600 to be refundable are also scheduled to expire. It is important to monitor tax news as 2025 ends to understand what the credit will be for the 2026 tax year.

Tax law changes are decided by Congress, not the IRS, so the amounts and rules for future years remain uncertain until legislation is signed into law.

How to claim the credit on your return

You claim the Child Tax Credit on Form 1040 (the main federal income tax form) using Schedule 8812 if you need to calculate the refundable portion. If you are using tax software, the program will ask you questions about each child and calculate the credit automatically.

You will need each child's full name, date of birth, and Social Security number. The name and number must match the Social Security Administration's records exactly, or the IRS may reject the credit and send you a notice.

If you file electronically, the IRS processes the return faster and can verify the child information more quickly. If you file on paper, processing takes longer, and any discrepancies may delay your refund.

Frequently Asked Questions

Can I claim the credit for a child who does not have a Social Security number?

No. Each child must have a valid Social Security number to claim the credit. If a child was born during the year and does not yet have a number, you can explore for one at your local Social Security office or online at ssa.gov. You may be able to file your return without the number and amend it later once the number is issued.

What if my child turned 17 during 2025?

You can claim the credit for that child because the rule is based on age at the end of the tax year. If your child is 17 on December 31, 2025, you can claim the full $2,000 credit for 2025. If they turn 17 on January 1, 2026, you cannot claim the credit for 2025.

Can I claim the credit if I do not file a tax return?

You must file a return to claim the credit, even if you have no tax liability. Filing allows you to receive the refundable portion. If you do not file, you cannot receive any benefit from the credit. Some people who do not normally file are encouraged to file specifically to claim this credit and receive a refund.

Does the credit reduce my child support or welfare benefits?

The Child Tax Credit is not counted as income for purposes of means-tested programs like SNAP, Medicaid, or TANF in most cases. However, some state programs may treat it differently, so check with your state agency if you receive benefits. A tax refund from the credit may affect future benefit amounts in some programs.

What if I claimed the wrong child or made an error on my return?

You can file an amended return using Form 1040-X to correct the error. If you claimed a child who was not your dependent or used the wrong Social Security number, amending the return will reduce your credit and may result in owing additional tax plus interest. File the amended return as soon as you discover the error to minimize interest charges.