The value of the child tax credit in 2025 (for tax returns filed in 2026) is $2,200, up from $2,000 in 2024. Going forward, the value of the child tax credit will be adjusted for inflation each year.
There are income limits: The child tax credit starts to phase out for married-filing-jointly filers with income above $400,000 and for all other filers with income above $200,000. These income limits are now permanent (the same limits were in place for 2024).
The eligibility rules were changed under the massive new tax law: Before, only the child for whom the credit was claimed needed to have a Social Security number. Now, the parent must have one too (if married filing jointly, one spouse must have a Social Security number).
The child tax credit is a valuable federal tax break for families, aimed at helping defray the costs of raising children.
Taxpayers who qualify can cut their tax bill by up to $2,200 for the 2025 tax year (on tax returns filed in 2026) up from $2,000 in 2024, for each qualifying dependent under age 17. And some taxpayers may qualify for up to $1,700 of that to be paid out to them as a refund, as part of the additional child tax credit.
The child tax credit is one of a few tax breaks taxpayers with dependent children can claim. Don’t confuse it with the child and dependent care credit, which helps offset the costs of child care, or the earned income tax credit, for lower-income working people. Plus, there’s a credit for other dependents — those that don’t qualify for the child tax credit — worth up to $500 (its name is just that: credit for other dependents).
Keep in mind that a tax credit reduces your tax bill dollar-for-dollar, unlike a tax deduction, which simply reduces how much of your income is subject to taxes.
Learn more: Tax credits vs. tax deductions: What’s the difference?
To qualify for the child tax credit, you must meet some specific requirements:
Each qualifying child must be under age 17 at the end of the tax year. That is, your child must be 16 or younger at the end of 2025 if you want to claim the child tax credit on your 2025 tax return, which is due April 15, 2026.
If your modified adjusted gross income (MAGI) exceeds certain thresholds — $400,000 for married couples who file jointly and $200,000 for all other filers — your credit amount is reduced by $50 for each $1,000 of income exceeding the threshold. For most taxpayers, their MAGI for the child tax credit is the same as their AGI. (MAGI for the purposes of the child tax credit is calculated by adding these items back into your AGI: income you excluded as a resident of Puerto Rico or American Samoa, foreign earned income and housing that you excluded from your income, and the tax deduction for foreign housing.)
Each qualifying child must be a U.S. citizen, U.S. national or resident alien and have a valid Social Security number.
Starting with the 2025 tax year, the taxpayer claiming the child tax credit also must have a Social Security number (if you’re married and filing jointly, at least one spouse must have a Social Security number).
The child must be a legally recognized child, stepchild, foster child, sibling, half-brother or half-sister or a descendant of one of these categories (such as a grandchild, niece or nephew).
The child must not have provided more than half of their own financial support for the year.
The child must have lived with you for more than half of the year.
You must claim the child as a dependent on your tax return.
