Enhanced Child Tax Credit (2025)
What’s new in 2025:
- The maximum Child Tax Credit (CTC) increases from $2,000 to $2,200 per qualifying child.
- Up to $1,700 of the credit may be refundable as the Additional Child Tax Credit (ACTC).
- Both the credit amount and refundable portion will be adjusted for inflation, so it may increase over time.
- The enhanced credit is now permanent. It no longer expires after 2025.
To be eligible:
- You have at least one child under age 17 at the end of the tax year.
- Children 17 or older may qualify for a different credit.
- Your child meets the relationship and residency rules.
- You and your child (and your spouse, if filing jointly) all have valid Social Security numbers.
- You’re filing a 2025, or later, federal tax return.
NOTE This credit is subject to income limitations. The credit begins to phase out once your Modified Adjusted Gross Income (MAGI) exceeds $200,000 ($400,000 if filing a joint return).
What it means for you:
- You may get a slightly larger credit for each qualifying child.
- If you’re eligible for the refundable portion, you could receive money back – even if your tax bill is already zero.
- Since the credit is now permanent, you can count on this support every year that you remain eligible.
Related Links
- IRS Child Tax Credit page
- IRS Refundable Tax Credits page
- New Tax Bill (2025) FAQ