The Child Tax Credit in 2025

The Child Tax Credit for 2025 remains at $2,000 per child, the same amount it has been since 2018. The credit did not increase, and the income thresholds where the credit begins to phase out also stayed the same: $400,000 for married couples filing jointly and $200,000 for single filers.

However, one significant change took effect in 2025: the credit is no longer fully refundable. This means fewer families will receive the full $2,000 as a refund if they owe little or no federal income tax. The refundable portion—the amount you can get back even if you owe nothing—dropped from $1,700 in 2024 to $1,600 in 2025.

This change affects families with lower incomes most directly. If your tax bill is smaller than your total credit, you will receive a refund for only part of the unused credit instead of most of it.

Key Takeaways

  • The Child Tax Credit amount stays at $2,000 per may have access to child in 2025, unchanged from 2024.
  • The refundable portion of the credit dropped to $1,600 in 2025, down from $1,700 in 2024, meaning lower-income families receive smaller refunds.
  • Income phase-out thresholds remain at $400,000 for married couples and $200,000 for single filers.
  • You report the Child Tax Credit on your 2025 tax return using Form 1040 and Schedule 8812 if you have dependents under age 17.

How the Refundable Portion Works

The refundable portion is the part of the credit that comes back to you as a refund even if you owe zero federal income tax. In 2024, this was $1,700 per child. Starting in 2025, it is $1,600 per child.

Here is a concrete example: suppose you have one may have access to child and your total federal income tax for 2025 is $800. Your full Child Tax Credit is $2,000. Because you owe only $800 in tax, the credit first covers that $800 bill, leaving $1,200 unused. In 2025, you can receive only $1,600 of the unused amount as a refund—but you already used $800 to cover your tax, so your actual refund would be $800 (the remaining $1,200 is lost). In 2024, the refundable limit was $1,700, which would have allowed you to recover more of that unused credit.

Families with higher incomes—those whose tax bill is already larger than $2,000—are not affected by this change, because their tax liability uses up the full credit before the refundable limit matters.

Who the Change Affects Most

Lower-income working families feel the impact of the reduced refundable portion most sharply. If you earned between roughly $15,000 and $40,000 in 2025 and have one or more children, your refund may be smaller than it would have been in 2024.

Families with higher incomes—those whose federal income tax bill exceeds $2,000 per child—see no change. The credit still covers their full tax liability, and the refundable portion does not come into play.

Self-employed individuals and gig workers should pay close attention, because quarterly estimated tax payments affect how much tax you owe by year-end. If you underpay throughout the year, you may owe less tax when you file, which means the refundable limit becomes more relevant to your refund amount.

How to Report the Child Tax Credit on Your 2025 Return

You report the Child Tax Credit using Form 1040 (the main individual income tax form) and Schedule 8812 (if you have dependents under age 17 or other may have access to children). You will need the Social Security number of each child and proof that they lived with you for more than half the year.

The IRS matches the names and Social Security numbers you provide against its records. If there is a mismatch, your return may be delayed or the credit may be disallowed. Double-check spelling and numbers before you file.

If you use tax software, the program will walk you through the questions and fill in the forms for you. If you file on paper, you can read the forms from IRS.gov or request them by mail.

Income Limits and Phase-Out Rules

The credit begins to shrink once your income exceeds the threshold for your filing status. For 2025, those thresholds are $400,000 for married couples filing jointly and $200,000 for single filers, head of household, and may have access to widow(er)s.

Once you cross the threshold, the credit reduces by $50 for every $1,000 (or fraction thereof) of income above the limit. This phase-out is the same as it was in 2024.

For example, if you are single, earn $205,000, and have two children, your income is $5,000 above the $200,000 threshold. The credit reduces by $50 × 6 (rounding up the fraction) = $300. Your total credit would be $4,000 minus $300 = $3,700.

What Happened to the Expanded Credit

From 2021 through 2024, the Child Tax Credit was temporarily expanded and made more refundable as part of pandemic relief. The credit was $3,000 per child (or $3,600 for children under age 6), and the refundable portion was much higher. Many families also received advance payments in 2021.

That expansion ended on December 31, 2024. The credit reverted to the permanent $2,000 amount, and the refundable portion dropped back down. The 2025 refundable limit of $1,600 is actually lower than it was before the expansion, because Congress did not renew the temporary boost.

This means families who benefited from the expanded credit in prior years will see a smaller credit (or smaller refund) on their 2025 return if their income and family size have not changed.

Frequently Asked Questions

Can I claim the Child Tax Credit for a child who turned 17 in 2025?

No. The child must be under age 17 as of December 31, 2025. If your child turned 17 during the year, they do not count. However, you may be able to claim a $500 credit for a dependent who does not meet the age requirement—check Schedule 8812 for details.

What if my child does not have a Social Security number?

Your child must have a valid Social Security number to claim the credit. If your child was born in 2025 and does not yet have a number, you can request one from the Social Security Administration before you file. You will need the number to report the credit on your return.

Does the lower refundable amount mean I should not claim the credit?

No. You should still claim the credit—it reduces your tax bill dollar-for-dollar up to the amount you owe, and any unused portion up to $1,600 comes back as a refund. Even with the lower refundable limit, the credit puts money in your pocket.

Will the credit go back to $3,000 or $3,600 in 2026?

That depends on Congress. The temporary expansion ended December 31, 2024, and the credit is now back at the permanent $2,000 level. Any future increase would require new legislation. There is no current law scheduled to raise it again.

How do I know if my child counts as a dependent for the credit?

Your child must be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these; live with you for more than half the year; be a U.S. citizen, national, or resident alien; have a valid Social Security number; and be under age 17 at the end of 2025. Check IRS Publication 972 for the full rules.