The 2025 Child Tax Credit is up to $2,000 per child under 17

The federal child tax credit for 2025 remains at $2,000 per may have access to child under age 17. This is the same amount as 2024. The credit reduces the federal income tax you owe dollar-for-dollar, and if the credit is larger than your tax bill, you may receive the difference as a refund.

The credit begins to phase out—meaning it gets smaller—once your modified adjusted gross income (MAGI) reaches certain thresholds. For 2025, the phase-out starts at $400,000 for married couples filing jointly and $200,000 for single filers and heads of household. For each $1,000 (or fraction thereof) over the threshold, the credit reduces by $50.

A child must be your biological child, stepchild, foster child, sibling, or descendant of any of these to count. They must have a valid Social Security number, live with you for more than half the year, and be claimed as your dependent on your tax return.

Key Takeaways

  • The 2025 child tax credit is $2,000 per child under age 17, the same as 2024.
  • The credit phases out starting at $400,000 MAGI for married couples filing jointly and $200,000 for single filers.
  • A child must have a valid Social Security number, live with you more than half the year, and be your dependent to count.
  • You claim the credit on your federal tax return using Form 1040 and Schedule 8812.
  • Some families received advance payments of the credit in 2024; those payments reduce the amount you can claim on your 2025 return.

How the credit reduces your tax bill

A tax credit is different from a deduction. A deduction lowers your taxable income; a credit directly reduces the tax you owe. If you owe $3,000 in federal income tax and you have a $2,000 child tax credit, your tax bill becomes $1,000.

The child tax credit is partially refundable, meaning if the credit is larger than your tax bill, you can receive up to $1,700 of the unused credit as a refund. This refundable portion is called the Additional Child Tax Credit. For example, if you owe $500 in tax but have a $2,000 credit, you would owe $0 and receive a refund of up to $1,500 (the $500 credit that covered your tax, plus up to $1,000 of the refundable portion).

Income thresholds and phase-out rules for 2025

The credit amount stays at $2,000 until your MAGI reaches the phase-out threshold. Once you cross that threshold, the credit shrinks by $50 for every $1,000 of income above it (rounded up). This means if you are $1 over the threshold, you lose $50 from the credit.

For 2025, the thresholds are:

  • $400,000 for married couples filing jointly
  • $200,000 for single filers
  • $200,000 for heads of household
  • $200,000 for married couples filing separately

These thresholds are the same as 2024. MAGI for the child tax credit is generally your adjusted gross income (AGI) from your tax return, with some modifications for certain types of income.

What counts as a may have access to child

A may have access to child must meet four tests: relationship, age, residency, and citizenship. The relationship test is broad—the child can be your biological child, stepchild, foster child, sibling, or any descendant of these (such as a grandchild or niece). The child does not have to be a minor; they can be any age under 17 on December 31 of the tax year.

The residency test requires the child to live with you for more than half the tax year. Temporary absences for school, medical treatment, military service, or vacation count as time lived with you. The child must also be a U.S. citizen, national, or resident alien and have a valid Social Security number issued before the tax return is filed.

Finally, you must claim the child as your dependent on your tax return. If two people could claim the same child, the IRS has tiebreaker rules based on who the child lived with longest, then who provided the most financial support.

Advance payments and how they affect your 2025 return

In 2024, some families received advance payments of the child tax credit through monthly deposits or checks. These payments were based on the IRS's estimate of the credit you would receive on your 2024 tax return. When you file your 2024 return, you must report how much you received in advance payments.

If you received advance payments in 2024, those amounts reduce the credit you can claim on your 2024 return. For example, if you received $1,200 in advance payments and your total credit is $2,000, you can only claim $800 on your return. This reconciliation happens when you file your 2024 return, not your 2025 return.

For your 2025 tax year (filed in 2026), the credit calculation starts fresh. Any advance payments you receive in 2025 will be reconciled on your 2025 return filed in 2026.

How to claim the credit on your tax return

You claim the child tax credit on your federal tax return using Form 1040 and Schedule 8812 (if you are claiming the Additional Child Tax Credit or if you have more than three may have access to children). You will need each child's name, date of birth, and Social Security number.

If you use tax software, the program will walk you through questions about each child and calculate the credit for you. If you file by hand, you enter the credit amount on Form 1040, line 24. If you are claiming the refundable portion, you also complete Schedule 8812 and attach it to your return.

You must file your return to receive the credit, even if you have no tax bill. The IRS does not send the credit automatically; you must claim it on your return or through an amended return if you missed it in a prior year.

Changes that could affect your credit amount

Your credit can change if your income rises above the phase-out threshold, if you have a new child, or if a child turns 17 during the year. A child ages out of the credit on December 31 of the year they turn 17, so a child born on December 31, 2007 would not count for the 2025 tax year (they would be 17 on December 31, 2025).

If your marital status changes, your filing status and income thresholds change too. If you divorce or separate, only the parent who claims the child as a dependent can claim the credit for that child (unless you have a custody agreement that says otherwise).

If you had a child in 2025, you can claim the credit for that child on your 2025 return filed in 2026, even if the child was born on December 31, 2025. The child must have a valid Social Security number by the time you file your return.

Frequently Asked Questions

Can I claim the child tax credit if my child doesn't have a Social Security number yet?

No. Your child must have a valid Social Security number issued by the time you file your return. If your child was born late in the year and you have not yet received their Social Security number, you can file your return using an Individual Taxpayer Identification Number (ITIN) temporarily, but you will need to amend your return once the Social Security number arrives.

What if I share custody of my child with another parent?

Only one parent can claim the child as a dependent and receive the credit. If you have a custody agreement, the agreement may specify which parent claims the child. If there is no agreement, the parent who had the child live with them for more of the year claims the child. If the time is equal, the parent with the higher income claims the child.

Does the child tax credit reduce my refund?

No. The credit reduces your tax bill first. If you have a refund coming, the credit makes your refund larger (or reduces how much you owe). For example, if you overpaid taxes by $500 and have a $2,000 credit, you would receive a refund of $2,500, not $500.

Can I claim the credit for a foster child?

Yes. A foster child counts as a may have access to child if they lived with you for the entire tax year and you cared for them as your own. You must claim them as your dependent on your tax return.

What happens if my income changes after I file my return?

If your income changes in a later year, your credit amount for that year may change. You claim the credit based on your income for that specific tax year. If you made an error on a prior year's return, you can file an amended return (Form 1040-X) to correct it.