The 2025 child tax credit is up to $2,000 per child under 17, paid as a tax refund or reduction in what you owe

The child tax credit reduces your federal income tax dollar-for-dollar. If you owe $3,000 in tax and you have two children under 17, the credit can cut that to $1,000. If the credit is larger than what you owe, you may receive the difference as a refund — though the refund portion has limits that change year to year.

For 2025, the credit remains $2,000 per child. A child must be under 17 at the end of the tax year, claimed as your dependent, and a U.S. citizen, national, or resident alien. You must have earned income to use the credit, and your income must fall below certain thresholds — $400,000 for married couples filing jointly, $200,000 for single filers.

The credit is not automatic. You claim it on your tax return by listing each child's Social Security number. If you do not file a return, you do not receive the credit.

Key Takeaways

  • The 2025 child tax credit is $2,000 per child under 17, and you claim it on your federal tax return.
  • Your income must stay below $400,000 (married filing jointly) or $200,000 (single) to receive the full credit.
  • The credit reduces your tax bill first; any remaining amount may be refunded to you, but refund limits explore.
  • Each child must have a valid Social Security number, be under 17 at year-end, and be claimed as your dependent.
  • You must have earned income — from wages, self-employment, or certain other sources — to use any part of the credit.

How the credit phases out at higher incomes

The full $2,000 credit is available only if your income stays within the limits. Once you cross the threshold, the credit shrinks by $50 for every $1,000 (or fraction of $1,000) over the limit.

If you are married filing jointly and earn $410,000, you are $10,000 over the $400,000 threshold. That rounds up to 11 increments of $1,000, so your credit drops by $550 — from $2,000 to $1,450 per child. The math is the same for other filing statuses, using their respective income limits.

Your income for this purpose is your modified adjusted gross income (MAGI), which is your adjusted gross income plus certain add-backs. For most people, MAGI is the same as adjusted gross income shown on line 11 of Form 1040.

What counts as a may have access to child

A child must meet four tests to count toward the credit. First, they must be your son, daughter, stepchild, foster child, sibling, or descendant of any of these — not a cousin, aunt, or uncle. Second, they must live with you for more than half the year (temporary absences for school, medical care, or military service do not break this rule). Third, they must be under 17 at the end of 2025. Fourth, they must be a U.S. citizen, national, or resident alien with a valid Social Security number.

You must also claim the child as a dependent on your return. If another person — such as an ex-spouse or grandparent — claims the child, you cannot claim the credit for that child, even if you paid for their support.

A child born on December 31, 2025, counts as under 17 for the year. A child who turns 17 on January 1, 2026, does not count for 2025.

The refundable portion and payment limits

The child tax credit is partially refundable, meaning you can receive money back even if you owe no tax. However, the refundable part is capped at $1,700 per child for 2025 — not the full $2,000.

Here is how it works: the credit first reduces your tax bill to zero. If you still have credit left over, up to $1,700 per child can be refunded to you. The remaining $300 per child cannot be refunded; it straightforward disappears if you do not owe enough tax to use it.

Example: You have two children and owe $1,500 in tax. The $4,000 credit (two children × $2,000) first wipes out your $1,500 tax bill. You have $2,500 of credit left. You can receive up to $3,400 as a refund ($1,700 × 2 children), so you receive the full $2,500 remaining credit as a refund.

Another example: You have two children and owe $0 in tax. The credit can refund up to $3,400 ($1,700 × 2). If you have no other income or credits, you receive $3,400 as a refund.

How to claim the credit on your return

You claim the child tax credit on Schedule 8812 (Form 1040), which you attach to your main tax return. You will need each child's full name, date of birth, and Social Security number. The IRS matches this information against Social Security Administration records, so the number must be correct and the child must have a valid number.

If you file electronically, tax software walks you through the questions and fills in Schedule 8812 for you. If you file by paper, you complete the schedule yourself and mail it with your return.

You must file a return to claim the credit — you cannot claim it any other way. If you normally do not file because your income is too low, filing a return may be worth it to receive the refundable portion of the credit.

Changes from prior years and what to watch for

The $2,000 per-child amount has been in place since 2018. The refundable portion (the part you can receive as a refund) has fluctuated: it was $1,600 in 2023, $1,700 in 2024, and remains $1,700 for 2025. Congress sets these amounts and can change them in future years.

In 2021 and 2022, the credit was temporarily higher ($3,000 or $3,600 per child) and was paid out monthly to families who registered. That program ended. For 2025, the credit is back to $2,000 and is claimed only on your tax return.

If your income or family situation changed during the year — a child was born, you married, you had a large bonus — your credit amount may differ from what you expected. Keep records of each child's birth date and Social Security number to verify your claim.

Frequently Asked Questions

Can I claim the credit for a child born late in the year?

Yes, if the child was born in 2025 and is a U.S. citizen or resident alien with a Social Security number. You claim the credit on your 2025 return filed in 2026. A child born on December 31, 2025, counts. A child born on January 1, 2026, does not count for 2025.

What if my ex-spouse claims our child as a dependent?

Only the person who claims the child as a dependent can claim the credit. If you and your ex share custody, you must agree who will claim the child each year, or the IRS will disallow the credit for whoever filed second. Your custody agreement or divorce decree may specify who claims the child.

Do I need to report the child's Social Security number to the IRS before filing?

No. You provide the number on your tax return. The IRS verifies it against Social Security Administration records when they process your return. If the number is wrong or the child does not have one, the IRS will reject the credit and send you a notice.

Can I claim the credit if I did not work during the year?

No. You must have earned income — from wages, self-employment, or certain other sources — to use any part of the credit. If you had no income, you cannot claim it, even if you are otherwise may be able to access.

What happens if my income goes over the limit partway through the year?

Your credit is based on your total income for the full year. If you earn $420,000 as a married couple filing jointly, your credit phases out based on that full amount, even if you earned most of it in one month. You cannot split the year or claim a partial credit based on when you earned the money.