The Child Tax Credit stayed at $2,000 per child in 2025, but the income thresholds where it begins to phase out shifted upward

The Child Tax Credit for 2025 remains $2,000 for each may have access to child under age 17. The major change is not the amount itself, but where the credit starts to shrink if your income is high. The phase-out threshold — the income level at which the credit begins to reduce — increased to $400,000 for married couples filing jointly and $200,000 for single filers. In 2024, those thresholds were $360,000 and $180,000.

This shift means more families in higher income brackets keep the full credit. However, the credit itself did not expand, and the advance monthly payments that some families received in 2021 and 2022 are not returning in 2025. You claim the credit when you file your 2025 tax return in early 2026.

Key Takeaways

  • The Child Tax Credit remains $2,000 per may have access to child under 17, with no increase for 2025.
  • Income thresholds where the credit phases out rose to $400,000 for married couples and $200,000 for single filers, allowing higher-income families to claim more of the credit.
  • Monthly advance payments of the credit are not available in 2025; you claim the full amount when you file your tax return.
  • A child must have a valid Social Security number and be claimed as your dependent to count toward the credit.

How the income phase-out works

Once your income exceeds the threshold for your filing status, the credit reduces by $50 for every $1,000 (or fraction thereof) over that amount. If you are married filing jointly and earn $410,000, you are $10,000 over the $400,000 threshold. That means your credit shrinks by $500 — $50 for each $1,000 over the limit.

The phase-out applies to your modified adjusted gross income (MAGI), which for most families is the same as your adjusted gross income (AGI) shown on your tax return. If your income is below the threshold, you get the full $2,000 per child with no reduction. The IRS adjusts these thresholds each year for inflation, which is why they changed from 2024 to 2025.

Who can claim the Child Tax Credit

To claim the credit for a child, that child must be under 17 at the end of 2025, be your dependent, and have a valid Social Security number. The child must also be a U.S. citizen, national, or resident alien. You must claim the child on your tax return, and the child cannot be claimed by another person.

The credit applies to biological children, stepchildren, adopted children, and foster children, as long as they meet the relationship and residency tests. If you share custody, only one parent can claim the child as a dependent in a given year — usually the parent with primary custody, unless you have a written agreement saying otherwise.

What happened to monthly advance payments

In 2021 and 2022, the federal government sent monthly advance payments of the Child Tax Credit to families who were below certain income limits. These payments were part of a temporary expansion during the pandemic. That program ended after 2022, and there are no monthly advance payments in 2025.

You now claim the full $2,000 credit (or whatever amount you are may have access to to based on your income) when you file your tax return for the year. This means you do not receive money until you file, which for most people happens in early 2026 for the 2025 tax year.

How to claim the credit on your return

When you file your 2025 tax return, you will report each may have access to child on Schedule 8812 (Credits for may have access to Children and Other Dependents) if you are using the IRS forms, or your tax software will ask for the child's information directly. You need the child's name, date of birth, and Social Security number.

If you use tax software or work with a tax preparer, they will walk you through the questions about each child. If you file by hand, Schedule 8812 calculates the credit amount and any phase-out reduction based on your income. The credit reduces your tax bill dollar-for-dollar, and if the credit is larger than the tax you owe, you may receive a refund.

Refundable and non-refundable portions

Up to $1,700 of the $2,000 Child Tax Credit is refundable, meaning you can receive it as a refund even if you owe no tax. The remaining $300 is non-refundable — it can only reduce your tax bill to zero, not create a refund beyond that. This structure has been in place since 2018 and did not change for 2025.

The refundable portion is sometimes called the Additional Child Tax Credit or the Refundable Credit. If you have three children and owe $1,200 in tax, the credit could cover that $1,200 and still leave you with a refund of up to $4,900 (the refundable portion of the remaining credit), depending on your income and other tax factors.

Income limits and how they affect you

The 2025 phase-out thresholds explore to your income for the 2025 tax year, which you will report when you file in early 2026. If you earned $420,000 as a married couple filing jointly, you are $20,000 over the $400,000 threshold, so your credit reduces by $1,000 total (20 × $50). With two children, instead of claiming $4,000, you would claim $3,000.

These thresholds are adjusted each year, so the 2026 thresholds will likely be different from 2025. The IRS announces the new thresholds in late fall of each year. If your income is close to the phase-out limit, it is worth calculating your expected income before year-end to understand how it might affect your credit.

Frequently Asked Questions

Does the Child Tax Credit increase if I have more children?

Yes. The credit is $2,000 per may have access to child under 17. If you have three children who meet the requirements, you can claim up to $6,000 (before any phase-out reduction based on income). Each child must have a valid Social Security number and be claimed as your dependent.

Can I claim the credit for a stepchild or foster child?

Yes, if the child lived with you for the entire year as a member of your household, is under 17, and you claim them as a dependent. The relationship must be legal (stepchild through marriage, or foster child through a court order or state agency placement). A biological relationship is not required.

What if my income is above the phase-out threshold?

The credit reduces by $50 for every $1,000 you earn over the threshold. At some very high income level, the credit phases out completely, though this takes a significant amount of income above the threshold. Use a tax calculator or speak with a tax preparer to see how your specific income affects the credit.

Do I need to do anything now, or only when I file my return?

You do not need to do anything until you file your 2025 tax return in early 2026. Make sure each child has a valid Social Security number and that you have their information ready when you file. If you use a tax preparer or software, they will guide you through claiming the credit.

What if I claimed a child as a dependent but my ex-spouse also claimed them?

Only one person can claim a child as a dependent in a given year. If both of you claim the same child, the IRS will disallow one of the claims and may assess penalties. If you share custody, you should have a written agreement about who claims the child each year, or follow your custody order if it specifies this.