The Child Tax Credit gives you a dollar-for-dollar reduction on your federal income tax for each may have access to child

The Child Tax Credit is a tax credit, not a deduction — meaning it reduces the actual tax you owe, not the income that gets taxed. For 2025, the credit is $2,000 per child under age 17 at the end of the tax year. If you owe $3,500 in federal income tax and you have two may have access to children, the credit reduces what you owe to $1,500 (before any other credits or payments).

The credit phases out as your income rises. The income threshold where it begins to shrink depends on your filing status: $400,000 for married couples filing jointly, $200,000 for single filers and heads of household. For each $1,000 (or fraction of $1,000) of income above that threshold, the credit drops by $50.

Part of the credit — up to $1,700 per child — may be refundable, meaning you can receive money back even if you owe no tax. Whether you get the refundable portion depends on your earned income and how much tax you actually paid during the year.

Key Takeaways

  • The credit is $2,000 per may have access to child under 17, and it reduces your tax dollar-for-dollar.
  • 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.
  • The credit begins to shrink when your income exceeds $400,000 (married filing jointly) or $200,000 (single or head of household).
  • Up to $1,700 of the credit may come back to you as a refund if you have little or no tax liability.
  • You claim the credit on Schedule 8812 (Form 1040) when you file your federal tax return.

Who counts as a may have access to child

Your child must meet four conditions. First, they must be under age 17 on December 31 of the tax year — so a child who turns 17 during 2025 does not count for 2025, but does count for 2024 if they were still 16 on December 31, 2024. Second, they must have a valid Social Security number issued before the tax return is filed.

Third, they must be your son, daughter, stepchild, foster child, sibling, or a descendant of any of those (such as a niece or nephew). Fourth, they must live with you for more than half the year. Temporary absences for school, medical care, military service, or vacation count as time living with you. If your child was born or died during the year, they still count as long as they lived with you for the rest of the year.

Your child must also be a U.S. citizen, national, or resident alien. A child with an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number does not count, even if they live with you full-time.

How income limits reduce the credit

The credit does not disappear when you cross the income threshold — it shrinks gradually. If you are married filing jointly and your modified adjusted gross income (MAGI) is $410,000, you are $10,000 over the $400,000 threshold. That $10,000 rounds up to $11,000 for credit purposes (the IRS rounds any fraction of $1,000 up to the next $1,000). For each $1,000 of that overage, the credit drops by $50, so your credit reduction is $550 (11 × $50). If you had two children and would normally claim $4,000, your credit becomes $3,450.

Your MAGI for this purpose is usually your adjusted gross income from your tax return. If you have foreign earned income or certain other types of income, MAGI may be higher. The IRS instructions for Form 1040 and Schedule 8812 specify which income types to include.

The refundable portion and how it works

Up to $1,700 of the $2,000 credit per child is refundable, meaning you can receive it as a refund even if you owe no federal income tax. The remaining $300 per child is non-refundable — you can use it only to reduce tax you actually owe.

Whether you receive the refundable portion depends on your earned income. The IRS calculates the refundable credit based on 15% of your earned income above $2,500. If your earned income is $15,000, your refundable credit limit is 15% of ($15,000 − $2,500) = 15% of $12,500 = $1,875. If you have one child, the refundable portion is capped at $1,700, so you would receive $1,700 as a refund (assuming you owe no tax). If you have two children, the refundable portion is capped at $3,400 total, so you could receive up to $3,400 back.

Earned income includes wages, salaries, self-employment income, and certain other compensation. It does not include investment income, Social Security, unemployment benefits, or child support.

How to claim the credit on your tax return

You claim the Child Tax Credit on Schedule 8812, which attaches to your Form 1040. You will need your child's full name, date of birth, and Social Security number. The IRS matches this information against Social Security Administration records, so any error or mismatch can delay your refund.

If you have a dependent who does not have a Social Security number but is otherwise a may have access to child, you cannot claim the credit for that child. Some taxpayers use an ITIN for a foster child or relative, but the credit requires a Social Security number specifically.

If you are married, you and your spouse must file jointly to claim the credit. If you file separately, neither of you can claim it (with rare exceptions for certain separated spouses). If you are unmarried and have a may have access to child, you can claim the credit as long as you meet the income and relationship tests.

What happens if you receive advance payments

In some years, the IRS has sent advance Child Tax Credit payments to families before they file their tax return. These payments reduce the credit you can claim when you file. If you received $1,200 in advance payments for 2025 and you are may have access to to a $2,000 credit, you claim $800 on your return. If you received more in advance than you are may have access to to, you may have to repay the difference when you file — though there are limits on how much you must repay if your income is below certain thresholds.

The IRS will send you a letter (Form 6419) showing how much you received in advance. Keep this letter with your tax records. If you did not receive the letter or think the amount is wrong, contact the IRS before you file.

Frequently Asked Questions

Can I claim the credit for a child who does not live with me full-time?

No. The child must live with you for more than half the year. If you and the other parent share custody and the child lives with each of you equally, only the parent who has the child for the greater number of nights can claim the credit. A custody agreement or court order can determine who that is.

What if my child turns 17 during 2025?

You cannot claim the credit for 2025. The child must be under 17 on December 31 of the tax year. However, you can claim the credit for 2024 if your child was still 16 on December 31, 2024.

Do I lose the entire credit if my income is too high?

No. The credit phases out slowly. You lose $50 for every $1,000 of income above the threshold. Even at very high incomes, you retain some credit until you reach approximately $440,000 (married filing jointly) or $240,000 (single), at which point the credit reaches zero for most families.

Can I claim the credit if I have a foster child?

Yes, if the foster child lives with you for the entire year and you have legal responsibility for them. The child must have a Social Security number and meet all other requirements. Some states provide additional documentation for foster children; check with your state agency if you are unsure.

What if the IRS says my child's Social Security number is invalid?

Contact the Social Security Administration to verify the number is correct and that it was issued before you filed your return. If there is an error on your return, file an amended return (Form 1040-X) with the correct information. If the number is correct but the IRS still rejects it, you may need to contact the IRS directly to resolve the mismatch.