Good news for parents this tax season: the Child Tax Credit (CTC) for 2025 could boost your refund by up to $2,000 per qualifying child. If you’re filing your taxes soon, here’s what you need to know to make sure you claim the full benefit.
How Much Can You Get Per Child?
The maximum credit available for each qualifying child under the age of 17 is $2,000 for the 2025 tax year. This credit directly reduces the amount of taxes you owe, and for many families, it could lead to a larger refund.
If you don’t owe enough in taxes to use the full $2,000, you may still be eligible to receive a portion as a refundable credit, known as the Additional Child Tax Credit (ACTC). The refundable amount for 2025 is up to $1,700 per child.
Income Limits and Phase-Outs
There are income thresholds to be aware of when determining your eligibility for the full credit.
- For single filers, the credit starts to phase out if your income exceeds $200,000.
- For married couples filing jointly, the phase-out begins at $400,000.
Once you pass these limits, your credit is reduced by $50 for every $1,000 of income over the threshold.
Do You Qualify for the Child Tax Credit?
To claim the credit, you must meet certain eligibility requirements:
- Age: The child must be under 17 at the end of the tax year.
- Relationship: The child must be your biological or adopted child, stepchild, sibling, foster child, or a descendant of any of these (such as a grandchild).
- Residency: The child must have lived with you for more than half the year.
- Support: The child must not have provided more than half of their own financial support.
- Citizenship: The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
Changes After 2025
The current expanded Child Tax Credit provisions are set to expire after the 2025 tax year unless Congress decides to extend them. Without an extension, the maximum credit could drop to $1,000 per child and stricter eligibility requirements may return.
How to Claim the Credit
To claim the Child Tax Credit, make sure to include it when filing your tax return. If you’re unsure how much you qualify for, consult a tax advisor or use a trusted tax software program. They can help you avoid missing out on valuable credits that could significantly increase your refund.
