Child Tax Credit 2025: Increased to $2,200 Under the OBBBA
Tax Credits · UPDATED 2025
The One Big Beautiful Bill Act increases the Child Tax Credit to $2,200 per qualifying child and makes it permanent. Here's the income phase-out, refundable portion, and what changed from 2024.
The Child Tax Credit (CTC) is one of the most valuable tax credits for American families. The One Big Beautiful Bill Act increases the maximum credit to $2,200 per qualifying child for tax year 2025 and makes the enhanced credit permanent — so families can plan around it going forward.
2025 Child Tax Credit Amount
For tax year 2025, the maximum Child Tax Credit is $2,200 per qualifying child under age 17 (up from $2,000 in 2024). The credit amount will be adjusted for inflation in future years.
Who Is a Qualifying Child?
To claim the Child Tax Credit, the child must:
• Be under age 17 at the end of the tax year
• Be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these
• Have lived with you for more than half the year
• Not have provided more than half of their own support
• Have a valid Social Security number
• Be a U.S. citizen, U.S. national, or U.S. resident alien
Income Phase-Out
The Child Tax Credit begins to phase out when your modified adjusted gross income (MAGI) exceeds:
• $400,000 for married filing jointly
• $200,000 for all other filers
Above these thresholds, the credit is reduced by $50 for each $1,000 (or fraction thereof) of income over the threshold.
Refundable Portion (Additional Child Tax Credit)
If the Child Tax Credit exceeds your tax liability, you may be eligible for a refund through the Additional Child Tax Credit (ACTC). The refundable portion is calculated based on your earned income. Families with little or no tax liability can still receive a significant refund through the ACTC.
Other Child-Related Changes in the OBBBA
The OBBBA also made the adoption credit partially refundable — a significant change for families who adopt. Previously, the adoption credit was nonrefundable, meaning it could only offset existing tax liability. The partially refundable adoption credit allows qualifying families to receive a portion as a refund.
Frequently Asked Questions
What is the Child Tax Credit for 2025?
$2,200 per qualifying child under age 17.
Is the Child Tax Credit refundable?
Partially. If the credit exceeds your tax liability, you may receive a refund through the Additional Child Tax Credit (ACTC) based on your earned income.
Does my child need a Social Security number to claim the credit?
Yes. The child must have a valid Social Security number issued before the due date of your return (including extensions).
I share custody of my child. Who claims the credit?
The credit is generally claimed by the custodial parent (the parent with whom the child lived for more nights during the year). The custodial parent can release the claim to the noncustodial parent using Form 8332.