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The IRS Child Tax Credit in 2025 is a powerful tool to help working families lower their federal tax bill or increase their refund.
This guide walks through what’s available in 2025, who qualifies, how to claim the credit, and what common pitfalls to avoid. Whether you’re a parent, guardian, or tax preparer helping a family, this post is designed to give you the key facts in plain English.
What is the Child Tax Credit?
The Child Tax Credit (CTC) is a federal tax credit that helps offset the cost of raising children. If you’re eligible, it can reduce the amount of income tax you owe. In other words, the credit first lowers your tax bill, and if there’s any left over after your taxes hit zero, you could actually get the extra money as a refund.
How Much Is the Child Tax Credit in 2025?
- The credit is worth up to $2,200 per qualifying child under age 17.
- Up to $1,700 of that amount may be refundable, depending on your income.
- The refundable portion is called the Additional Child Tax Credit (ACTC).
- The final refund amount depends on how much tax you owe and how much you earned.
Who Qualifies for the Child Tax Credit in 2025?
To claim the credit, the child must meet all of the following:
- Age: Under 17 at the end of the year
- Relationship: Your child, stepchild, foster child, sibling, stepsibling, or a descendant such as a grandchild or niece
- Support: The child did not provide more than half of their own support
- Residency: Lived with you for more than half the year
- Dependency: You are claiming the child as a dependent on your return
- Citizenship: The child is a U.S. citizen, national, or resident alien with a valid Social Security number
The parent also must meet income and filing requirements, and thanks to the OBBB passed in 2025, starting in 2025, the parent must have a have a valid SSN if filing single, and both parents must have valid SSNs if married filing jointly to claim the credit
Income Limits for the 2025 Child Tax Credit
The credit starts to phase out once your income goes above a certain threshold:
- $200,000 for single filers or heads of household
- $400,000 for married couples filing jointly
If your income goes above the limit, the credit is reduced by $50 for every $1,000 over the threshold.
Is the Child Tax Credit Refundable?
Partially. Here’s how it breaks down:
- If the credit is more than your tax bill, you may qualify for a refund of up to $1,700 per child.
- To get the refundable portion, you must have at least $2,500 in earned income.
- The refundable credit is phased in based on how much you earned
When Can You Claim the 2025 Child Tax Credit?
You claim the credit when you file your 2025 federal tax return in 2026.
- January 2026: IRS opens the filing season
- April 15, 2026: Standard deadline to file your return
- October 15, 2026: Final deadline to file if you request an extension
If you want the credit, you must file a tax return. It’s not issued automatically. Contact the experts to make sure that you’ve filed the right way.
How to Claim the Child Tax Credit
To claim the credit:
- File Form 1040 or 1040-SR
- List each qualifying child with their correct Social Security number
- Complete Schedule 8812 to calculate the credit and check for refund eligibility
Most online tax filing software will walk you through this process. If you work with a tax advisor, they will complete these forms based on your documents.
What If You Had a Baby in 2025?
You can still claim the Child Tax Credit for a child born in 2025 as long as:
- The child was born by December 31, 2025
- The child lived with you for at least half the year (or qualifies under exceptions for newborns)
- The child has a valid Social Security number
- You meet the income and support rules listed above
Shared Custody and the Child Tax Credit
Only one parent can claim the credit for each child in a given tax year. Typically:
- The parent who has custody for more than half the year is eligible
- If you alternate years with an ex-spouse, be sure your agreement is clear and matches your tax filing
Claiming the same child on two different returns can delay refunds and trigger an IRS notice.
What to Do Next
If you qualify for the Child Tax Credit in 2025, make sure you:
- Keep your child’s Social Security number on hand
- Track custody arrangements if you share parenting responsibilities
- File early if you need your refund quickly
- Ask a tax advisor if your situation is more complex
The Child Tax Credit is one of the most valuable tax benefits for working families. A few small details can make the difference between a smaller refund and a larger one.
Frequently Asked Questions (FAQs)
Can I get the credit if I don’t have earned income?
You need at least $2,500 in earned income to qualify for the refundable portion of the credit. If you have no income, you won’t get a refund, but the nonrefundable part may reduce your tax stemming from unearned income
Do both parents need Social Security numbers?
Only the child needs a valid Social Security number to qualify. Parents can file with an ITIN (Individual Taxpayer Identification Number) and still claim the credit if all other conditions are met.
Can I claim the credit if I already owe the IRS?
Yes. The credit will first reduce your outstanding tax bill. If the credit is larger than what you owe, you may still get a refund for the balance, depending on your income.
