The 2025 child tax credit is up to $2,000 per child under 17, but the amount depends on your income and filing status

The child tax credit reduces the federal income tax you owe, dollar for dollar, for each may have access to child. In 2025, the maximum credit is $2,000 per child under age 17 at the end of the tax year. However, the credit begins to shrink if your modified adjusted gross income (MAGI) exceeds certain thresholds: $400,000 for married couples filing jointly, and $200,000 for single filers and heads of household. For every $1,000 (or fraction thereof) over the threshold, the credit drops by $50.

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 $1,700 per child for 2025. If you earned less than $2,500, you cannot claim the refundable portion. The non-refundable portion can only reduce your tax bill to zero; it does not generate a refund.

Key Takeaways

  • The maximum credit is $2,000 per may have access to child under 17, but it phases out if your income exceeds $400,000 (married filing jointly) or $200,000 (single).
  • Up to $1,700 of the credit may be refundable if you have earned income, meaning you could receive money back even if you owe no tax.
  • A child must be a U.S. citizen, national, or resident alien with a valid Social Security number to may have access to.
  • You must claim the child as a dependent on your tax return, and the child must be under 17 at the end of the tax year.

Who qualifies as a dependent child for the credit

To claim the credit, the child must be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these (such as a grandchild or niece). The child must live with you for more than half the tax year, be under 17 at the end of 2025, and be a U.S. citizen, national, or resident alien. You must also claim the child as a dependent on your return, and the child's Social Security number must be valid and match the name on your tax return.

If parents are divorced or separated, only one parent can claim the child as a dependent. Usually this is the parent with primary custody, but parents can agree otherwise. The parent who claims the child as a dependent is the one who can claim the credit.

Income limits and how the credit phases out

The credit does not disappear entirely when you exceed the income threshold — it shrinks. For 2025, the thresholds are $400,000 for married couples filing jointly, $200,000 for single filers, and $200,000 for heads of household. Your income for this purpose is your modified adjusted gross income (MAGI), which for most people is the same as your adjusted gross income (AGI) shown on your tax return.

The reduction works in $50 increments. For every $1,000 of income over the threshold (or any part of $1,000), the credit drops by $50. For example, if you are single with MAGI of $201,000, you are $1,000 over the $200,000 threshold, so your credit is reduced by $50. If your MAGI is $201,500, the reduction is still $50 because you have not yet reached the next $1,000 increment. At $202,000, the reduction becomes $100.

The difference between refundable and non-refundable portions

The credit has two parts. The non-refundable portion can reduce your tax bill to zero but will not generate a refund. If you owe $800 in federal tax and claim a $2,000 credit, the non-refundable portion covers the $800, and the remaining $1,200 is lost unless it qualifies as refundable.

The refundable portion — the Additional Child Tax Credit — can result in a refund. For 2025, you can receive up to $1,700 per child as a refund, but only if you have earned income. The refundable amount is the lesser of $1,700 per child or 15 percent of your earned income above $2,500. If you earned $10,000, your refundable credit would be 15 percent of $7,500 ($10,000 minus $2,500), which is $1,125 per child. If you earned $2,500 or less, you cannot claim the refundable portion.

How to claim the credit on your tax return

You claim the child tax credit on Form 1040 (the main individual income tax form) or Form 1040-SR if you are 65 or older. You will need the child's full legal name, date of birth, and valid Social Security number. The IRS matches this information against Social Security Administration records, so any mismatch will delay your refund.

If you file electronically, tax software will walk you through the questions and calculate the credit automatically. If you file by paper, you list each may have access to child on Schedule 8812 (for the refundable portion) and on the main form itself. You must also have a valid Social Security number for yourself and your spouse (if filing jointly).

What changed from 2024 to 2025

The maximum credit amount remains $2,000 per child. The income thresholds for phase-out also stayed the same: $400,000 for married couples filing jointly and $200,000 for single filers and heads of household. The refundable portion cap of $1,700 per child is also unchanged from 2024.

Tax law can shift year to year, so it is worth checking the IRS website or a tax professional if you are unsure whether your situation has changed. The credit is not automatic — you must claim it on your return to receive it.

Frequently Asked Questions

Can I claim the credit if my child was born on December 31, 2025?

Yes. The child must be under 17 at the end of the tax year, which means they can be born on December 31 and still may have access to. However, you will need their Social Security number to claim them, and the number must be issued before you file your return.

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 that matches the child's name. If your child was born late in the year and the number has not arrived, you may need to file an amended return once the number is issued. Some tax software will let you file and add the number later, but check with the IRS or a tax professional first.

Can two parents both claim the same child?

No. Only one parent can claim a child as a dependent on a tax return. If both parents file claiming the same child, the IRS will reject one of the claims. Parents should agree in advance on who will claim the child, or the parent with primary custody will be presumed to have the right to claim them.

Do I lose the entire credit if my income is too high?

No. The credit phases out gradually. Even at very high incomes, you may still receive some credit. For example, a married couple with MAGI of $410,000 would lose $500 of the credit (for $10,000 over the threshold), leaving $1,500 per child. The credit does not disappear completely unless your income is substantially higher.