What’s New With the Child Tax Credit for the 2025 Tax Year?

Starting in 2025, families will see some important updates to the Child Tax Credit (CTC), thanks to the “One Big Beautiful Bill” (OBBB) passed in July 2025. These changes apply when filing your 2025 tax return in early 2026. Here’s a quick breakdown of what’s new.

Why the amounts are changing

• The 2017 Tax Cuts and Jobs Act set the credit at $2,000.
• The OBBB permanently raises it to $2,200 starting in 2025.
• Beginning in 2026, the amount will rise automatically with inflation.
• The refundable portion (up to $1,700) still helps when your tax bill drops to zero, but you need at least $2,500 of earned income to qualify.

Who qualifies?

• The child must be under 17 at the end of 2025, live with you more than half the year, and have a valid Social Security number (SSN).
• New rule: the taxpayer, or at least one spouse if you file jointly, must have an SSN valid for work. In past years, parents with ITINs could still claim the credit if the child had an SSN. This change may exclude some mixed-status families.
• Income phaseouts remain the same:

Filing status	Full credit up to	Reduction above the limit
Single / Head of Household	$200,000	$50 per $1,000 over
Married Filing Jointly	$400,000	$50 per $1,000 over

Minimum income needed for the full credit

Families must earn a certain amount to claim the full $2,200 per child. Approximate figures:

Children	Single	Married Filing Jointly
1	about $28,700	about $36,500
2	about $33,700	about $41,500
3	about $38,700	about $46,500
4	about $45,800	about $51,500

Lower-income families may still get a partial credit.

How to claim the 2025 CTC

When filing your 2025 tax return (due April 2026), make sure you have:

• SSNs for all qualifying children and for you (or at least one spouse if filing jointly)
• Proof of income (W-2s, 1099s, etc.)
• Records showing the child lived with you over half the year
• Schedule 8812 (Form 1040 attachment) to calculate both the refundable and non-refundable portions

Why this matters

• Families will see an extra $200 per child in 2025, with future growth tied to inflation.
• The new SSN requirement for the taxpayer may reduce eligibility for some households.
• Low-income families will continue to face limits, as the refundable portion is capped at $1,700.

Bottom line: most families benefit from a modest boost, but it’s important to check eligibility under the new rules. Planning ahead helps you claim the maximum credit available.