- Personal Finance
- Taxes
It’s no secret that kids are expensive, but the child tax credit can offset a small portion of those costs. The child tax credit is a tax break that can lower your tax bill dollar for dollar and could even help you score a bigger refund.
The One Big Beautiful Bill Act (OBBB) made a few changes to the credit for tax year 2025 that affect the return you’ll file by April 15, 2026. We’ll walk you through updates to the child tax credit rules, plus some other tax credits for families with children.
Learn more: Your tax refund may be bigger this year — here's why
What is the child tax credit?
The child tax credit is a partially refundable tax credit, meaning a portion of the credit can be issued as a tax refund. The refundable part of the credit is called the additional child tax credit and is worth up to $1,700.
For example, suppose you have two qualifying children, bringing your total child tax credit to $4,400. If you owed $5,000 in taxes before the credits, your total tax bill would drop to $600 because the IRS would reduce your liability dollar for dollar by $4,400.
Now, let’s say the IRS owed you a $500 refund before you add in the child tax credits. Your refund would increase to $3,900 — an additional $3,400, or $1,700 per child, thanks to the additional child tax credit. But because $500 of the credit ($1,000 total since you have two children) is nonrefundable, your tax refund wouldn’t increase by the full $4,400.
Read more: Tax credit vs. tax deduction: What's the difference, and which is better?
2025 changes to the child tax credit
There are a few major changes to the child tax credit that will affect your 2025 and 2026 returns:
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Higher credit amount: In 2025, the child tax credit increases to $2,200 (up from $2,000 in 2024) under the OBBB.
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Inflation adjustments: The credit will be indexed for inflation in 2026 and subsequent years.
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Stricter Social Security number requirements: You (or your spouse if you’re married and filing a joint return) must have a Social Security number that makes you eligible for work in the U.S.
Who qualifies for the child tax credit?
The following are the criteria the IRS uses to determine eligibility to claim the child tax credit:
Age and status of the dependent
The child you are claiming as a dependent must be under the age of 17 by the end of the tax year for which you are filing. The qualifying dependent must also not have filed a joint tax return unless they are trying to recover estimated taxes paid or income taxes withheld.
Relationship and support
The qualifying child must be your son or daughter, stepchild, foster child, brother or sister, step-sibling, grandchild, nephew, or niece. They must have lived with you for more than half of the tax year and provided no more than half of their own financial support during that time.
Income and filing status
Whether you’ll receive the full amount of the credit depends on your modified adjusted gross income and your filing status. The credit begins to phase out if your income exceeds:
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$400,000 for married filing jointly
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$200,000 if you’re single, head of household, married filing separately, or a qualified widow(er) with dependents
If your income exceeds the threshold, your full credit will be reduced by $50 for each $1,000 you earned in the tax year above the limit. Families earning less than $2,500 for the tax year aren’t eligible for the child tax credit.
Citizenship/residency status
Last but not least, the child you are seeking to claim as a dependent must have a valid Social Security number that makes them eligible for employment and qualifies them as a U.S. citizen or a U.S. national. You (or your spouse if you’re married filing jointly) will also need a valid Social Security number to claim the credit.
How to claim the child tax credit in 2025
Once you’ve determined you meet the criteria, the process for claiming the child tax credit with the IRS is fairly easy, provided you submit your tax return by the deadline.
List children and other dependents on your Form 1040
There’s a portion of Form 1040, the US individual income tax return form, where you’re asked to list your children and other qualifying dependents. If you’re using tax software or the IRS free tax-filing tool, you’ll enter this information through a series of questions.
Learn more: How to file your taxes for free
Complete Schedule 8812
This IRS.gov worksheet helps you correctly calculate your child tax credits. Still, you’ll need info from the 1040 form to complete the schedule, arrive at a specific dollar amount, and determine if you’re eligible for the additional child tax credit.
Follow up if your CTC claim was denied
If you file early, note that the IRS doesn’t release the child tax credit refund until mid-February. However, if you qualify, you should see your refund status on the IRS Where’s My Refund? tool by Feb. 22. Your refund could hit your account via direct deposit by March 2.
Denied? You can follow up with the IRS to determine why. If you need to correct your claim, you may be asked to fill out a Schedule 8862, which also applies to the earned income credit, before you resubmit.
Read more: Where's my refund? Here's how to check your refund status.
Other tax credits for parents and families with children
Here are a few other tax credits you may be eligible for if you have qualifying children and don’t earn more than the income limits:
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Adoption tax credit: Families who adopt a child may qualify for the adoption tax credit, worth up to $17,280 for tax year 2025 and $17,670 for tax year 2026.
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Child and dependent care credit: The child and dependent care credit provides reimbursement for care expenses for young children (under 13) of working parents and caregivers with incapacitated spouses or loved ones. You can claim between 20% and 35% of up to $3,000 of care expenses (for one dependent) or $6,000 of care expenses (for two or more dependents).
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Credit for other dependents: If you have dependents who don’t qualify for the child tax credit (like adult children or parents you support), you may qualify for the credit for other dependents, which is worth up to $500.
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Earned income tax credit (EITC): The EITC is a tax credit for low- and moderate-income families who earn money from working. The maximum credit is $8,046 in 2025 and $8,231 in 2026 for families with three or more qualifying children.
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Education tax credits: If you or your dependent child is enrolled in an undergraduate institution at least half-time, you may be eligible for the American Opportunity Tax Credit, worth up to $2,500. The Lifetime Learning Credit can cover a wider array of education expenses and is worth up to $2,000. You can’t claim both education credits for the same student in the same year.
Child tax credit 2025 FAQs
How much is the child tax credit for 2025?
The maximum amount for each qualifying child is $2,200, with the refundable portion totaling $1,700 per qualifying child.
Can two parents claim the same child for the child tax credit?
A qualified child can only be claimed on one tax return, which means if parents file separately, they can’t both claim the same dependent.
If both parents try to claim the same child, the IRS generally treats this as a first-come, first-served situation and will deny the second claim and request that the parent resubmit their tax return.
Is there a state child tax credit?
Seventeen states and the District of Columbia have a child tax credit. Twelve of those states and the District of Columbia provide a fully refundable state child tax credit:
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California
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Colorado
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District of Columbia
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Illinois
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Maine
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Maryland
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Massachusetts
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Minnesota
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New Jersey
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New Mexico
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New York
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Oregon
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Vermont
Five more states have a nonrefundable child tax credit for the 2025 tax year; however, Idaho’s credit sunsetted in 2026:
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Arizona
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Georgia
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Idaho (not available in 2026)
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Oklahoma
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Utah
The amounts and eligibility requirements of the credits vary.
What is the $3,600 child tax credit?
The $3,600 child tax credit refers to the expanded child tax credit that was only available in 2021 as part of the American Rescue Plan. Parents received a larger credit of $3,600 (for each child 5 and younger) and $3,000 (for each child ages 6 to 17).
Half of the credit was paid in monthly installments between July and December 2021. The remainder was paid out as a refund when qualifying taxpayers filed their 2021 returns.
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