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

The federal child tax credit for 2025 remains at $2,000 per may have access to child under age 17. This is a dollar-for-dollar reduction in the federal income tax you owe, not a deduction from your income. The credit phases out for higher earners: it begins to reduce if your modified adjusted gross income exceeds $400,000 for married couples filing jointly, or $200,000 for single filers and heads of household.

The credit is partially refundable, meaning you can receive money back even if you owe no tax. The refundable portion — called the Additional Child Tax Credit — is limited to 15 percent of your earned income above $2,500, up to a maximum of $1,700 per child for 2025. This means if you earned $20,000 and have one may have access to child, you could receive a refund of up to $1,700 even if your tax liability is zero.

Key Takeaways

  • The credit is $2,000 per child under 17, and it reduces your tax bill dollar-for-dollar rather than reducing your taxable income.
  • You must have a valid Social Security number for each child and claim them as dependents on your return to receive the credit.
  • If you owe no federal tax, you may still receive up to $1,700 per child as a refund through the refundable portion of the credit.
  • The credit phases out for higher incomes: $400,000 for married couples filing jointly, $200,000 for single filers and heads of household.

Who qualifies as a child for the credit

A child must be under age 17 at the end of 2025 to count toward the $2,000 credit. The child must be your son, daughter, stepchild, foster child, sibling, or descendant of any of these (such as a niece or nephew), and you must claim them as a dependent on your tax return. The child must have lived with you for more than half of 2025, and you must provide more than half their financial support for the year.

Each child must have a valid Social Security number issued before the tax return is filed. If a child was born in 2025, they still count for the full $2,000 credit as long as they meet the other requirements. Adopted children count the same as biological children, and foster children count if they lived with you for the required time and you claimed them as dependents.

How the credit reduces your tax bill

The child tax credit is a nonrefundable credit up to the amount of tax you owe. If you owe $3,000 in federal income tax and have two may have access to children, the $4,000 credit would reduce your bill to zero. Any credit amount beyond what you owe is lost — unless you may have access to for the refundable portion.

The refundable portion, the Additional Child Tax Credit, lets you claim up to $1,700 per child as a refund even if you owe no tax. This applies if your earned income (wages, self-employment income, or other work-related earnings) exceeds $2,500. The refund amount is 15 percent of earned income above $2,500, capped at $1,700 per child. For example, if you earned $12,500 and have one child, your refundable credit would be 15 percent of $10,000, or $1,500.

Income limits and phase-out rules

The credit begins to reduce if your modified adjusted gross income (MAGI) exceeds certain thresholds. For married couples filing jointly, the phase-out begins at $400,000. For single filers, heads of household, and married couples filing separately, it begins at $200,000. For each $1,000 (or fraction thereof) over the threshold, the credit reduces by $50.

If you are married filing separately, each spouse has a $200,000 threshold. If your MAGI is $401,000 as a married couple filing jointly, your credit reduces by $50. At $402,000, it reduces by $100. This phase-out applies to the full $2,000 credit, not just the refundable portion. You calculate the reduction on your tax return using IRS Form 8812 if you claim the Additional Child Tax Credit.

Dependent care credit versus child tax credit

The child tax credit is separate from the dependent care credit (also called the child and dependent care credit). The child tax credit applies to children under 17 and reduces your tax bill based on their age and your income. The dependent care credit applies to expenses you paid for someone to care for a child under 13, a disabled spouse, or a disabled dependent while you worked or looked for work.

You can claim both credits in the same year if you meet the requirements for each. The dependent care credit is worth up to $3,000 in expenses for one person or $6,000 for two or more, and the credit is 20 to 35 percent of those expenses depending on your income. These are two different benefits that serve different purposes, so check whether you paid for care expenses before assuming only the child tax credit applies to you.

Changes from 2024 to 2025

The child tax credit amount remains $2,000 per child for 2025, the same as 2024. The income thresholds where the credit begins to phase out also remain unchanged: $400,000 for married couples filing jointly and $200,000 for other filers. The refundable portion cap stays at $1,700 per child.

Tax laws can change year to year, so the amounts and rules that explore in 2025 may differ in future years. The current $2,000 credit and these income limits are set by current law, but Congress can modify them. When you file your 2025 return in early 2026, use the 2025 rules and amounts, not the rules from prior years.

How to claim the credit on your return

You claim the child tax credit on IRS Form 1040 (the main individual income tax return) by listing each may have access to child's name, date of birth, and Social Security number. The form calculates the credit automatically based on the number of children and your income. If you think you may may have access to for the refundable portion (the Additional Child Tax Credit), you also file IRS Form 8812 with your return.

You do not need to file a separate process or contact the IRS in advance. The credit is claimed when you file your tax return. If you use tax software or a tax preparer, they will ask you questions about your children and calculate the credit for you. Make sure you have each child's Social Security number and that they are listed correctly on your return, because errors can delay your refund or trigger an IRS notice.

Frequently Asked Questions

Can I claim the child tax credit for a child born in 2025?

Yes. A child born in 2025 counts for the full $2,000 credit on your 2025 tax return as long as they have a valid Social Security number by the time you file. The child does not have to be 17 years old by the end of the year — they just need to be under 17 at the end of 2025, which a newborn is.

What if I do not have a Social Security number for my child yet?

You cannot claim the credit without a valid Social Security number for each child. If your child was born late in 2025 and you have not received their number yet, 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. Contact the Social Security Administration to request a number for a newborn.

Can I claim the credit if my child lives with their other parent?

Only one parent can claim the child tax credit for each child per year. The child must live with you for more than half the year and you must provide more than half their support. If you and the other parent share custody equally, you can agree on who claims the child, or the parent with the higher income typically claims it. You cannot both claim the same child.

Does the credit explore if I am claimed as a dependent on someone else's return?

No. If another person claims you as a dependent on their return, you cannot claim the child tax credit for your own children. This often applies to adult children living with parents. If you are claimed as a dependent, you cannot claim any dependents yourself, including your own children.

What happens if the IRS says I claimed a child incorrectly?

The IRS may send you a notice if there is a mismatch between the child's name, Social Security number, or relationship to you on your return. You will need to respond with documentation showing the child meets the requirements — typically a birth certificate and proof of residence. If you made an error, you can file an amended return (Form 1040-X) to correct it and claim the credit properly.