The Child Tax Credit is one of the most significant tax breaks available to families with children. For millions of households, it’s the difference between a modest refund and a substantial one. Here’s everything you need to know about the credit for 2025 taxes filed in 2026 — how much it’s worth, who qualifies, and how to claim it.
What Is the Child Tax Credit?
The Child Tax Credit (CTC) is a federal tax credit that reduces the income taxes owed by parents and guardians of qualifying children. Unlike a deduction, which reduces your taxable income, a credit reduces your actual tax bill dollar for dollar.
There is also a refundable portion called the Additional Child Tax Credit (ACTC), which means some or all of the credit can come back to you as a refund even if you owe little or no federal income tax.
How Much Is the Child Tax Credit in 2026?
For the 2025 tax year (returns filed in 2026), the Child Tax Credit is:
- Up to $2,000 per qualifying child
- Up to $1,700 is refundable through the Additional Child Tax Credit (ACTC)
The $1,700 refundable portion is particularly valuable because you can receive it even if you owe no federal income tax at all.
Who Qualifies for the Child Tax Credit?
To claim the credit, the child must meet all of the following tests:
Age Test
The child must be under age 17 at the end of the tax year. A child who turns 17 during 2025 does not qualify.
Relationship Test
The child must be your:
- Son, daughter, or stepchild
- Foster child (placed by an authorized agency)
- Sibling, half-sibling, or step-sibling
- Descendant of any of the above (grandchild, niece, nephew, etc.)
Dependent Test
You must be able to claim the child as a dependent on your return. Generally, this means the child lived with you for more than half the year, you provided more than half their financial support, and they didn’t file a joint return with a spouse (unless only to claim a refund).
Citizenship Test
The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
Social Security Number Requirement
The qualifying child must have a valid Social Security number issued by the deadline for your tax return. An Individual Taxpayer Identification Number (ITIN) does not qualify for the CTC, though it may qualify for the Credit for Other Dependents.
Income Limits: When Does the Credit Phase Out?
The Child Tax Credit begins to phase out when your modified adjusted gross income (MAGI) exceeds:
- $200,000 for single filers, heads of household, and qualifying surviving spouses
- $400,000 for married filing jointly
The credit reduces by $50 for every $1,000 (or fraction thereof) that your income exceeds the threshold. For example, a married couple with two children and a MAGI of $410,000 would have the credit reduced by $500 (10 x $50 x 2 children, or rather 10 increments × $50 reduction per child × 2 children).
At high enough incomes, the credit phases out entirely — though the threshold for complete elimination depends on the number of children.
What Is the Additional Child Tax Credit (ACTC)?
If the $2,000 Child Tax Credit exceeds your tax liability, you can’t get the full non-refundable portion back — but you can receive up to $1,700 per child as a refund through the ACTC.
To qualify for the refundable portion, you generally need earned income of at least $2,500. The refundable amount is calculated as 15% of your earned income above $2,500, up to the $1,700 limit per child.
Example: If you have two children and earned $20,000, your earned income above $2,500 is $17,500. 15% of that is $2,625. With two children, your maximum ACTC is $3,400 (2 × $1,700), so you’d get the full $2,625 back as a refund even if you had zero tax liability.
Credit for Other Dependents
If you have a dependent who doesn’t qualify for the Child Tax Credit — a 17-year-old, a college student you support, an elderly parent — you may claim the Credit for Other Dependents, worth up to $500 per qualifying dependent. This credit is non-refundable and subject to the same income phase-outs as the CTC.
How to Claim the Child Tax Credit
When you file your return, you’ll claim the credit on:
- Form 1040, Line 19 — Child Tax Credit and Credit for Other Dependents
- Schedule 8812 — Credits for Qualifying Children and Other Dependents (required if you have three or more qualifying children, receive the ACTC, or the credit is limited by your tax liability)
If you use tax software, it will walk you through this automatically. You’ll need each child’s name, SSN, and date of birth.
Will There Be an Expanded CTC in 2026?
The CTC has been a frequent subject of legislative debate. The Tax Cuts and Jobs Act (TCJA) provisions — including the $2,000 credit and $1,700 refundable amount — are currently scheduled to expire after 2025 unless Congress acts. If TCJA provisions expire, the credit would revert to pre-2018 rules ($1,000 per child, lower refundability thresholds).
Congress has been negotiating extensions and potential expansions. Watch for updates heading into tax season, as legislation passed in late 2025 or early 2026 could affect returns you’re filing.
Tips for Maximizing the Child Tax Credit
- Make sure every child has a valid SSN before the tax deadline — you can file for an extension to obtain one if needed
- Verify who claims each child if parents are divorced or separated — only one parent can claim per year unless they split the credit via Form 8332
- Check if your income qualifies you for the EITC — if you’re in the income range for ACTC, you’re likely also eligible for the Earned Income Tax Credit
- Don’t confuse CTC with the Child and Dependent Care Credit — that’s a separate credit for childcare expenses while you work
Frequently Asked Questions
What if I had a baby in 2025?
You can claim the full $2,000 Child Tax Credit for any child born at any point during 2025, as long as they were alive at year-end. Even a child born on December 31 qualifies for the full-year credit.
Can I claim the CTC for a child who doesn’t live with me?
Generally no — the child must live with you for more than half the year. The exception is when a custodial parent releases the right to claim the dependent to the non-custodial parent via Form 8332.
What if both parents try to claim the same child?
The IRS uses tiebreaker rules. If both parents claim the same child, the IRS allows the return that was filed first to proceed and rejects the second — triggering an audit of the second filer. The parent with whom the child lived longer wins under IRS tiebreaker rules.
Does the credit apply to adopted children?
Yes, adopted children who are U.S. citizens qualify. Internationally adopted children may also qualify once the adoption is final and they hold citizenship. There is also a separate Adoption Tax Credit for qualified adoption expenses.
Bottom Line
The Child Tax Credit provides up to $2,000 per qualifying child, with up to $1,700 refundable — making it one of the most valuable tax breaks for families. If you have children under 17 with Social Security numbers and your income is below the phase-out thresholds, you almost certainly qualify. Make sure you’re claiming it on your return, along with any other credits like the EITC that may apply to your situation.