The child tax credit for 2025 and how to claim it

Thanks to a bump from the One Big Beautiful Bill Act, the Child Tax Credit rose to a maximum of $2,200 per eligible child under 17 in tax year 2025, up from $2,000 in tax year 2024.

The credit is now also partially refundable, so households that owe little or nothing can still claim a portion of it, though not the full $2,200.

According to the Bipartisan Policy Center, over 46 million taxpayers claim the Child Tax Credit (CTC) annually.

Included in the Taxpayer Relief Act of 1997, the Child Tax Credit was originally nonrefundable and worth $500 per child 16 or under. Subsequent legislation increased the amount, added a refundable portion and expanded income thresholds.

The Tax Cuts and Jobs Act of 2017 increased the CTC to $2,000 through 2025. Amid the pandemic, the  American Rescue Plan Act  temporarily expanded the credit to $3,600 per child under 6 and $3,000 for children 6 to 17.

It also made the credit fully refundable and paid it out in monthly installments.

The tax break reverted to $2,000 in 2022 and was set to expire in 2026. In July 2025, however, the One Big Big Beautiful Bill permanently increased the maximum credit per child to $2,200, with annual adjustments for inflation.

For 2025 tax returns, filed in 2026, the CTC is worth up to $2,200 for each qualifying dependent child under age 17.

The refundable portion, known as the additional child tax credit (ACTC), is worth up to $1,700 for each qualifying child. That's how much families can claim if the credit exceeds the taxes they owe.

To be eligible for the child tax credit for tax year 2025, you must:

• Be a U.S. citizen or resident alien
• Have a modified adjusted gross income (MAGI) of $400,000 or less if married filing jointly, or $200,000 or less for other filers.
• Be claiming the credit for a legally recognized child, stepchild, foster child, sibling, half-sibling or descendant (grandchild, niece, nephew, etc.)

In addition, any child you claim must:

• Have been under 17 as of Dec. 31, 2025
• Be listed as a dependent on your tax return
• Have a valid Social Security number
• Have lived with you for over half the year
• Have contributed no more than half of their own financial support in 2025

Married couples filing jointly can have a modified adjusted gross income of up to $400,000 to claim the full $2,200 credit. Other filers are capped at a MAGI of $200,000.

The amount you can claim drops $50 for every $1,000 over those income limits, however, and the credit is fully phased out for married couples filing jointly with a MAGI of $480,000 (or $240,000 for other filers).

You can claim the credit by entering any qualifying children on Form 1040 and attaching Schedule 8812, Credits for Qualifying Children and Other Dependents. 

If you're filing electronically, both TurboTax and FreeTaxUSA allow filers to claim the child tax credit with their free plans. (TurboTax reports that 37% of taxpayers qualify for its no-cost tier.)

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