The 2025 child tax credit is $2,000 per child under age 17

The Child Tax Credit for 2025 remains $2,000 for each may have access to child under 17 years old. This is the amount you can subtract from your federal income tax bill for each may be able to access child. The credit has stayed at $2,000 since 2018, though the rules around who qualifies and how much you receive have shifted over time.

The credit is partially refundable, meaning if the credit is larger than the tax you owe, you may receive part of the difference as a refund. The refundable portion (called the Additional Child Tax Credit) is capped at $1,700 per child for 2025, though this amount changes year to year based on inflation adjustments.

Income limits determine whether you receive the full $2,000 or a reduced amount. For 2025, the credit begins to phase out at $400,000 for married couples filing jointly and $200,000 for single filers. For every $1,000 (or fraction thereof) of income above these thresholds, the credit reduces by $50.

Key Takeaways

  • The credit is $2,000 per child under age 17, and you claim it on your federal tax return for the year the child turns 17.
  • Your income determines whether you get the full amount or a reduced credit, with phase-outs starting at $400,000 for married filers and $200,000 for single filers.
  • The refundable portion caps at $1,700 per child for 2025, so even if you owe no tax, you may receive up to that amount as a refund.
  • You need a valid Social Security number for each child to claim the credit, and the child must be a U.S. citizen, national, or resident alien.

Who qualifies as a dependent child for this credit

A child must meet several conditions to count toward the $2,000 credit. The child must be under age 17 at the end of 2025, be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these (such as a grandchild or niece), and live with you for more than half the year. The child must also be a U.S. citizen, national, or resident alien with a valid Social Security number.

You must claim the child as a dependent on your tax return, and you must be the child's parent or legal guardian. If parents are divorced or separated, the parent with primary custody typically claims the credit, though the rules allow for exceptions if both parents agree in writing.

A child who is claimed as a dependent by another person (such as a grandparent) does not may have access to under your return. Only one person can claim the credit for each child per tax year.

Income limits and how the credit reduces

The full $2,000 credit applies if your modified adjusted gross income (MAGI) is below the threshold for your filing status. For 2025, married couples filing jointly can earn up to $400,000; single filers and heads of household up to $200,000; and married filing separately up to $200,000.

Once your income exceeds the threshold, the credit decreases by $50 for each $1,000 (or any part of $1,000) over the limit. For example, a married couple with $401,000 in MAGI would lose $50 from the credit, bringing it to $1,950 per child. At $402,000, the reduction is $100 per child. This phase-out continues until the credit reaches zero.

MAGI is usually your adjusted gross income from your tax return, but certain types of income (such as foreign earned income) may be added back for this calculation. If you are unsure whether your income triggers a reduction, the IRS worksheet on Form 1040 instructions walks through the math.

Refundable versus non-refundable portions

The Child Tax Credit has two parts: the non-refundable portion and the refundable portion. The non-refundable portion reduces your tax bill dollar-for-dollar up to the amount of tax you owe. If you owe $1,200 in federal tax and have a $2,000 credit, the non-refundable part covers the full $1,200.

The refundable portion is the Additional Child Tax Credit, which can pay you money even if you owe no tax. For 2025, you can receive up to $1,700 per child as a refund. This means if you owe $0 in tax but have a $2,000 credit, you would receive a $1,700 refund (the refundable cap) rather than the full $2,000 difference.

The refundable amount is limited to 15 percent of your earned income above $2,500, or the refundable cap ($1,700 in 2025), whichever is smaller. If you have little or no earned income, this calculation may reduce the refundable portion further.

How to claim the credit on your tax return

You claim the Child Tax Credit on Form 1040 (the main federal income tax form) by listing each may have access to child's name and Social Security number. The IRS matches this information to Social Security records to verify the child exists and that you have not already claimed them on another return.

If you file electronically, tax software typically walks you through the questions about each child and calculates the credit automatically. If you file by paper, you enter the information directly on Form 1040 and complete the worksheet in the instructions to calculate any phase-out reduction.

You must file a return to claim the credit, even if your income is below the filing threshold. Many families with low income file specifically to receive the refundable portion of the credit as a refund.

Changes from prior years and what to watch for

The $2,000 per-child amount has been in place since 2018. Before that, the credit was $1,000 per child. The refundable cap of $1,700 for 2025 is adjusted annually for inflation, so it may differ from prior years—check the current year's Form 1040 instructions to confirm the exact amount.

In 2021 and 2022, the credit was temporarily expanded and made more refundable as part of pandemic relief, but those changes expired. The credit returned to its standard rules for 2023 and continues under those rules for 2025.

Income thresholds are also adjusted annually for inflation. The $400,000 and $200,000 thresholds for 2025 may differ from 2024, so verify the current year's limits on the IRS website or in Form 1040 instructions before calculating your phase-out.

Frequently Asked Questions

Can I claim the credit for a child who was born in December 2025?

Yes. The child must be under age 17 at the end of 2025, so a newborn in December qualifies. You need the child's Social Security number to claim them, which you can obtain from the Social Security Administration after birth.

What if my child's Social Security number is not yet issued?

You can file your return without the number and amend it later once you receive the number, or you can request an Individual Taxpayer Identification Number (ITIN) from the IRS as a temporary placeholder. The IRS will not process the credit until a valid Social Security number is provided.

Do I lose the entire credit if my income is slightly over the threshold?

No. The credit phases out gradually at $50 per $1,000 of income over the limit. A small amount over the threshold results in a small reduction, not a complete loss of the credit.

Can both parents claim the credit if we share custody?

Only one parent can claim the credit per child per year. Typically the parent with primary custody claims it, but parents can agree in writing to have the other parent claim it instead. The IRS requires Form 8332 or a similar written agreement.

What happens if I claimed a child on my return and someone else also claimed them?

The IRS will disallow the duplicate claim and may assess penalties. Only one person can claim each child. If you and another person both file claiming the same child, contact the IRS to resolve the conflict before the other return is processed.