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

For the 2025 tax year, the Child Tax Credit remains $2,000 for each child under age 17 at the end of the year. This is the amount you can subtract from the federal income tax you owe, dollar for dollar. The credit does not change based on your income unless you earn above certain thresholds, which vary by filing status.

The credit begins to shrink if your modified adjusted gross income (MAGI) exceeds $400,000 for married couples filing jointly, $200,000 for single filers, and $200,000 for heads of household. For every $1,000 over that limit, the credit drops by $50. If you are well below these income levels, the full $2,000 per child applies to you.

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. You cannot claim the credit for a child who files their own tax return claiming themselves as a dependent.

Key Takeaways

  • The Child Tax Credit is $2,000 per may have access to child under 17 for the 2025 tax year, with no change from 2024.
  • The credit phases out only if your income exceeds $400,000 (married filing jointly) or $200,000 (single or head of household).
  • A child must have a Social Security number, live with you more than half the year, and be your dependent to count.
  • Up to $1,700 of the credit may be refundable, meaning you can receive money back even if you owe no tax, though this depends on your earned income.

How the refundable portion works

Part of the Child Tax Credit is refundable, which means you can get money back even if you owe zero federal income tax. For 2025, up to $1,700 per child is refundable. This portion is called the Additional Child Tax Credit or the refundable credit.

To claim the refundable portion, you must have earned income — wages, self-employment income, or other work-related earnings. The amount you can receive back is limited to 15 percent of your earned income above $2,500. For example, if you earned $10,000 and owe no tax, 15 percent of $7,500 (the amount over $2,500) equals $1,125, so you would receive $1,125 back. If you earned $15,000 or more, you could receive the full $1,700 refundable credit per child, up to the limit of your total tax liability plus the refundable amount.

If you have no earned income, you cannot claim the refundable portion. You can still claim the non-refundable $2,000 credit if you owe federal income tax, but you would not receive a refund.

Income limits and phase-out rules

The credit does not disappear at a certain income level — it phases out gradually. Your MAGI determines when the reduction begins. For married couples filing jointly, the phase-out starts at $400,000. For single filers and heads of household, it starts at $200,000.

Once your MAGI exceeds the threshold for your filing status, the credit decreases by $50 for every $1,000 (or fraction of $1,000) over the limit. If you are $1 over the threshold, the credit drops by $50. If you are $1,001 over, it drops by $100. This means a married couple earning $401,000 would lose $50 of the credit per child, while a couple earning $402,000 would lose $100 per child.

MAGI for this purpose includes most types of income: wages, interest, dividends, capital gains, self-employment income, and rental income. It does not include certain items like tax-exempt interest or foreign earned income exclusions, but for most households, MAGI is the same as adjusted gross income (AGI) shown on your tax return.

What changed from 2024 to 2025

The $2,000 per-child amount and the $1,700 refundable portion remain the same as 2024. The income thresholds where the credit begins to phase out also stayed the same: $400,000 for married filing jointly and $200,000 for single and head of household filers.

The Child Tax Credit has held steady at $2,000 since 2017. In 2021 and 2022, Congress temporarily increased it to $3,000 per child (or $3,600 for children under 6) and made more of it refundable, but that expansion expired. The credit returned to $2,000 starting in 2023 and has remained there through 2025.

How to claim the credit on your tax return

You claim the Child Tax Credit on Form 1040 (the main federal income tax form) using Schedule 8812 if you are claiming the refundable portion. If you only claim the non-refundable credit, you enter it directly on Form 1040.

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 accuracy matters. If a number is wrong or the child does not exist in the system, the IRS will deny the credit and may delay your refund while they investigate.

If you use tax software or a tax preparer, they will ask you to enter your children's information and calculate the credit automatically. The software will explore the income phase-out rules and determine how much of the credit is refundable based on your earned income. You do not have to do the math yourself.

Common mistakes that delay refunds

The most frequent error is entering a child's Social Security number incorrectly — even one wrong digit will cause the IRS to reject the credit. Double-check the number on the child's Social Security card or the letter the Social Security Administration sent you.

Another common mistake is claiming the credit for a child who does not meet the relationship or residency test. Foster children and stepchildren count, but the child must live with you for more than half the year. If a child lived with you for six months and their other parent for six months, you cannot claim the credit for that child.

Some people claim the credit for a child who filed their own tax return claiming themselves as a dependent. Only one person can claim a child as a dependent. If you and the child both file and both claim the child, the IRS will disallow one of the claims, usually the parent's, and you will lose the credit.

Frequently Asked Questions

Can I claim the Child Tax Credit if my child is 17 years old?

No. The child must be under 17 at the end of the tax year to count. A child who turns 17 on December 31, 2025, does not may have access to for the 2025 credit. A child who turns 17 on January 1, 2026, does may have access to because they were under 17 for the entire 2025 tax year.

What if I share custody and the other parent claims the child?

Only one parent can claim a child as a dependent and receive the credit. If you and the other parent cannot agree, the IRS generally allows the parent with whom the child lived for the longer period of time to claim the credit. If custody is exactly equal, the parent with the higher income can claim it. You may want to consult a tax professional or family law attorney if this is disputed.

Do I have to report the credit if I received advance payments in 2024?

If you received advance Child Tax Credit payments in 2024 (when the IRS sent monthly payments to some families), you must report the total amount received when you file your 2024 return. The IRS will reconcile what you received against what you are owed. If you received too much, you may owe it back; if you received too little, you will get the difference as a refund.

Can I claim the credit for a grandchild I am raising?

Yes, if the grandchild meets the relationship, age, residency, and dependent tests. The grandchild must live with you for more than half the year, be under 17, have a valid Social Security number, and be claimed as your dependent on your return. You cannot claim the credit if the child's parent (your child) also claims them as a dependent.

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

You cannot claim the credit without a valid Social Security number. If your child was born late in the year and you have applied for a number but have not received it yet, you can file your return without the credit and amend it later once the number arrives. Some tax software allows you to enter an process date as a placeholder, but the IRS will not process the credit until the actual number is on file.