If you’re a parent wondering how much you could get back in tax refunds this year, you’re not alone. The Child Tax Credit (CTC) is one of the most important benefits for families, and for 2025, it could put thousands of dollars back into your pocket. Here’s a breakdown of how it works, who qualifies, and how much you could receive.
How Much Is the Child Tax Credit in 2025?
For the 2025 tax year, the Child Tax Credit offers up to $2,000 per qualifying child under the age of 17. This credit directly reduces your tax bill dollar-for-dollar, which can make a significant difference when filing your taxes.
If your tax liability is less than the credit amount, you may still be eligible for a refundable portion called the Additional Child Tax Credit (ACTC). For 2025, the refundable amount has increased to $1,700 per child. That means you could receive cash back even if you owe little to no taxes.
Do You Qualify for the Full $2,000 Credit?
To claim the Child Tax Credit, your child must meet these requirements:
- Age Requirement: The child must be under 17 by the end of the tax year.
- Relationship: They can be your son, daughter, stepchild, foster child, sibling, or a descendant of any of them (like a grandchild or niece/nephew).
- Support: The child must not have provided more than half of their financial support during the year.
- Residency: The child must live with you for more than half the year.
- Citizenship: The child must be a U.S. citizen, national, or resident alien with a valid Social Security number.
Income Limits: Will Your Credit Be Reduced?
The Child Tax Credit begins to phase out for individuals with a modified adjusted gross income (MAGI) above $200,000 or for married couples filing jointly with a MAGI above $400,000.
For every $1,000 over the limit, the credit decreases by $50. For example, if your income exceeds the threshold by $5,000, your credit would be reduced by $250.
Are Changes to the Child Tax Credit Coming?
There have been talks in Congress about expanding the Child Tax Credit to provide additional financial support to families. Proposals include increasing the credit amount and broadening eligibility. However, as of now, no changes have been officially approved.
What You Should Do Next
To make sure you receive the correct credit amount, double-check your eligibility and income thresholds. The IRS website has detailed guidelines, or you can consult a tax professional for personalized advice.
With the right preparation, you could be on track to get a significant boost in your tax refund this year—especially if you have multiple qualifying children.
