The Child Tax Credit in 2025

The Child Tax Credit for 2025 is worth up to $2,000 per child under age 17. You claim it on your federal tax return to reduce the tax you owe. The credit applies to children who are your biological children, stepchildren, adopted children, or foster children, and they must have a valid Social Security number.

The credit begins to phase out if your income 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 reduces by $50.

You do not need to have earned income to claim the credit, but your child must live with you for more than half the year and you must be able to claim them as a dependent on your return.

Key Takeaways

  • The Child Tax Credit is $2,000 per may have access to child under age 17 on your 2025 tax return.
  • Your income must be below $400,000 (married filing jointly) or $200,000 (single) to receive the full credit.
  • The child must have a valid Social Security number, live with you more than half the year, and be claimed as your dependent.
  • You claim the credit on Form 1040 when you file your federal return; you do not need to file a separate form.
  • If the credit exceeds the tax you owe, you may receive a refund of up to $1,700 per child through the refundable portion.

How Much You Get Back

The full credit is $2,000 per child. If you owe $1,200 in federal tax and have two may have access to children, the credit would reduce your tax to zero and you would receive a refund of $2,800 (the remaining $2,800 of the $4,000 credit).

The credit is partially refundable, meaning you can receive money back even if you owe no tax. The refundable portion is called the Additional Child Tax Credit, and it is limited to $1,700 per child for 2025. This amount is indexed for inflation each year, so it may change.

If you have three children and owe $500 in tax, the $6,000 credit would wipe out your tax and you would receive a refund of up to $5,500 (three children times $1,700 refundable limit). The remaining $500 of the credit is nonrefundable and does not produce additional refund money.

Income Limits and Phase-Out

The credit phases out based on your modified adjusted gross income (MAGI). For 2025, the phase-out begins at $400,000 for married couples filing jointly, $200,000 for single filers, and $200,000 for heads of household.

For every $1,000 of income over the threshold (rounded up), the credit reduces by $50. If you are married filing jointly with income of $410,000 and two children, your credit would be reduced by $100 (two increments of $1,000), bringing your total credit from $4,000 to $3,900.

MAGI for this purpose includes your wages, self-employment income, investment income, and certain other sources. It is not the same as your gross income on your W-2 or 1099 forms.

Who Can Claim the Credit

You must be the child's parent, stepparent, adoptive parent, or foster parent. The child must be under age 17 at the end of the tax year (so a child turning 17 in 2025 does not may have access to for that year). The child must also be a U.S. citizen, national, or resident alien with a valid Social Security number.

The child must live with you for more than half the year. Temporary absences for school, medical care, military service, or vacation count as time living with you. If you and another person both meet the requirements, the person with the higher adjusted gross income claims the credit.

You cannot claim the credit if someone else claims the child as a dependent on their return. In a divorce or custody situation, the parent with custody for the longer part of the year typically claims the child, unless a written agreement says otherwise.

How to Claim the Credit on Your Return

You claim the Child Tax Credit on Form 1040, the main federal income tax form. On the form, you list each may have access to child's name and Social Security number in the section labeled "Dependents." The form automatically calculates the credit based on the information you provide.

If you use tax software, the program will ask you questions about your children and calculate the credit for you. If you file by paper, you write the child's information in the spaces provided and the IRS calculates the credit when they process your return.

You do not file a separate form to claim the credit. The credit appears on your Form 1040 as a line item that reduces your total tax owed. If the credit is larger than your tax, the refundable portion may result in a refund to you.

What Changed From Previous Years

The $2,000 credit amount has been in place since 2018. The refundable portion (Additional Child Tax Credit) was $1,600 per child in 2023 and 2024, and increased to $1,700 for 2025 due to inflation adjustment.

The income phase-out thresholds ($400,000 for married filing jointly, $200,000 for single) have remained the same since 2018. The phase-out rate of $50 per $1,000 over the threshold has also remained unchanged.

These amounts are set by federal law and do not change every year unless Congress passes new legislation. The refundable portion does adjust annually for inflation, so check the IRS website or your tax software for the current year's amount.

Frequently Asked Questions

Can I claim the credit if my child was born in December 2025?

Yes. The child must be under age 17 at the end of the tax year, so a child born at any point in 2025 qualifies for the 2025 tax year. You will need the child's Social Security number to claim the credit.

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 the child. If you are expecting a number, you can file your return and amend it once you receive the number. Some tax software allows you to file and add the number later in the year.

Do I lose the credit if my income goes over the limit?

You do not lose the entire credit. It phases out gradually at $50 per $1,000 of income over the threshold. If you are slightly over the limit, you will still receive most of the credit.

Can my ex-partner claim the credit if they have custody?

The parent with custody for the longer part of the year can claim the credit, unless you have a written agreement that says the other parent claims it. If you share custody equally, the parent with the higher income typically claims it, but you can agree otherwise in writing.

What if the credit is more than the tax I owe?

The refundable portion (up to $1,700 per child for 2025) can result in a refund to you even if you owe no tax. Any credit amount above the refundable limit is nonrefundable and does not produce additional refund money.