IRS Data
Child Tax Credit 2026
Complete guide to the Child Tax Credit for the 2025 tax year (filed in 2026). Covers the $2,000 per-child credit amount, income phase-out thresholds, qualifying child tests, the refundable Additional Child Tax Credit, and recent changes under the One Big Beautiful Bill Act.
2025 Child Tax Credit Overview
The Child Tax Credit (CTC) is a federal tax credit available to taxpayers with qualifying children under age 17. For the 2025 tax year (returns filed in 2026), the credit is worth up to $2,000 per qualifying child. The credit reduces your tax liability dollar-for-dollar and is partially refundable through the Additional Child Tax Credit (ACTC).
| Detail | 2025 Amount |
|---|---|
| Maximum credit per qualifying child | $2,000 |
| Refundable portion (ACTC) per child | $1,700 |
| Phase-out threshold (Single, HOH, MFS) | $200,000 |
| Phase-out threshold (Married Filing Jointly) | $400,000 |
| Phase-out rate | $50 per $1,000 of income above threshold |
| Minimum age requirement | Under age 17 |
| Relationship test | Child, stepchild, foster child, sibling, or descendant |
| SSN requirement | Valid SSN for each child |
The CTC was originally established by the Taxpayer Relief Act of 1997 at $400 per child. The Tax Cuts and Jobs Act of 2017 doubled the credit to $2,000 and raised the refundable portion substantially. For 2025, the credit remains at $2,000 per qualifying child with a refundable limit of $1,700.
Qualifying Child Requirements
To claim the Child Tax Credit for a child, that child must meet all five of the following IRS tests:
| Test | Requirement |
|---|---|
| Age Test | The child must be under age 17 at the end of the tax year (December 31, 2025 for the 2025 tax year). A child who turns 17 during the tax year does not qualify for the CTC. |
| Relationship Test | The child must be your: son, daughter, stepchild, eligible foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of these (e.g., grandchild, niece, nephew). Adopted children are treated the same as biological children. |
| Residency Test | The child must have lived with you for more than half the tax year. Temporary absences for school, vacation, medical care, military service, or detention count as time lived with you. |
| Support Test | The child must not have provided more than one-half of their own support for the tax year. Support includes food, housing, clothing, medical care, education, and other necessities. |
| Citizenship / SSN Test | The child must be a US citizen, US national, or US resident alien. Each qualifying child must have a valid Social Security number (SSN) issued before the tax return due date. An ITIN is not sufficient for the CTC. |
If a child does not meet all five tests, you may still qualify for the Other Dependent Credit of up to $500 (see section below). Special rules apply for children of divorced or separated parents — the credit generally goes to the custodial parent unless a Form 8332 release is filed.
For children with disabilities who are permanently and totally disabled, the age test does not apply — they may qualify regardless of age if they meet the other four tests.
Income Phase-Out Rules
The Child Tax Credit begins to phase out once your modified adjusted gross income (MAGI) exceeds certain thresholds. The phase-out reduces the credit by $50 for every $1,000 (or fraction thereof) of income above the threshold.
| Filing Status | Phase-Out Threshold (MAGI) |
|---|---|
| Married Filing Jointly (MFJ) | $400,000 |
| Single | $200,000 |
| Head of Household (HOH) | $200,000 |
| Married Filing Separately (MFS) | $200,000 |
| Qualifying Widow(er) | $400,000 |
Phase-out calculation example: If you are married filing jointly with $430,000 of MAGI and have two qualifying children:
- Excess income: $430,000 − $400,000 = $30,000
- Number of $1,000 increments (rounded up): 30
- Reduction: 30 × $50 = $1,500
- Maximum credit: 2 children × $2,000 = $4,000
- Credit after phase-out: $4,000 − $1,500 = $2,500
If the phase-out completely eliminates your CTC, any remaining non-refundable credit that cannot be used may be carried forward under certain circumstances. Note that MAGI for CTC purposes includes your adjusted gross income plus any foreign earned income exclusion and certain other adjustments.
Refundable vs Non-Refundable — Additional Child Tax Credit (ACTC)
The Child Tax Credit has two components: a non-refundable portion and a refundable portion (the Additional Child Tax Credit, or ACTC).
The non-refundable portion can reduce your federal income tax liability to zero but cannot generate a refund beyond what you already paid in. The refundable portion (ACTC) can result in a refund even if you owe no tax.
| Feature | Non-Refundable CTC | Refundable ACTC |
|---|---|---|
| Maximum per child | $2,000 | $1,700 |
| Can it exceed your tax liability? | No | Yes |
| Earned income requirement? | No | Yes — at least $2,500 |
| How it is calculated | Dollar-for-dollar reduction of tax | 15% of earned income over $2,500, capped at $1,700 per child |
| Form | Form 1040, Schedule 8812 | Form 1040, Schedule 8812 |
ACTC example: A single parent with one qualifying child and $18,000 of earned income:
- Earned income over $2,500: $18,000 − $2,500 = $15,500
- 15% of $15,500 = $2,325
- Capped at $1,700 per child = $1,700 refundable credit
The ACTC is subject to the same phase-out rules as the CTC. If you have three or more qualifying children, there is an alternative formula for the ACTC based on the excess of your Social Security and Medicare taxes over your earned income credit — use Form 8812 to determine which method gives you the larger refundable amount.
Recent Changes Under the One Big Beautiful Bill Act
The One Big Beautiful Bill Act (OBBB), signed into law in 2025, introduced several changes that affect the Child Tax Credit for the 2025 tax year and beyond. Here is a summary of the key provisions:
- Refundable portion increased: The maximum refundable ACTC amount was raised from $1,600 (2024) to $1,700 per qualifying child for 2025.
- Earned income floor unchanged: The $2,500 earned income threshold for the ACTC remains in place.
- Phase-out thresholds unchanged: The $200,000 / $400,000 phase-out thresholds remain at current levels, with no inflation indexing.
- SSN requirement maintained: Each qualifying child must continue to have a valid Social Security number issued before the due date of the return (including extensions).
- No expansion to 2021 levels: The temporary 2021 expansion (which raised the credit to $3,600 per child and made it fully refundable) was not reinstated. The credit remains at the post-TCJA structure.
For future tax years, the OBBB framework includes provisions that could further modify the CTC depending on revenue triggers and budget reconciliation measures. Taxpayers should monitor IRS announcements for any additional changes affecting 2026 and beyond.
Other Dependent Credit — $500 for Non-Child Dependents
If you have a dependent who does not meet the age or relationship tests for the Child Tax Credit, you may qualify for the Credit for Other Dependents (ODC) of up to $500 per qualifying dependent.
Eligible dependents for the $500 credit include:
- Children age 17 or older — including full-time students age 17–23 who are still claimed as dependents
- Elderly parents — parents or grandparents whom you support and can claim as dependents
- Other qualifying relatives — siblings, aunts, uncles, in-laws, or non-relatives who meet the residency and support tests
- Children without valid SSNs — dependents who have ITINs instead of SSNs (though the regular CTC requires an SSN)
| Feature | Child Tax Credit | Other Dependent Credit |
|---|---|---|
| Maximum credit | $2,000 per child | $500 per dependent |
| Age requirement | Under 17 | None |
| SSN required | Yes | No (ITIN accepted) |
| Refundable | Partially ($1,700 via ACTC) | No (non-refundable) |
| Phase-out | $200K / $400K | Same CTC phase-out applies |
The ODC is claimed on the same Schedule 8812 as the CTC and follows the same phase-out rules. It is non-refundable, meaning it can only reduce your tax liability to zero but cannot generate a refund.
How to Claim the Child Tax Credit
Follow these steps to claim the Child Tax Credit and Additional Child Tax Credit on your 2025 tax return:
- Gather required documents: Social Security numbers for each qualifying child, your prior-year tax return, W-2s and 1099s showing earned income, and records of any dependent care expenses.
- Complete Form 1040 or 1040-SR: Enter your personal information, filing status, and income. The CTC is claimed on lines 19 and 28 of the 2025 Form 1040 (or the equivalent lines on your chosen form).
- Attach Schedule 8812: IRS Schedule 8812 (Credits for Qualifying Children and Other Dependents) is the official form used to calculate both the CTC and the ACTC. The form walks you through the phase-out calculation, the refundable amount, and the ODC if applicable.
- E-file your return: The IRS strongly recommends e-filing for faster processing. E-filed returns with direct deposit are typically processed within 10–21 days. Paper returns can take 6–8 weeks or longer.
- Check for PATH Act holds: If you claim the ACTC, the IRS is required by the Protecting Americans from Tax Hikes (PATH) Act to hold your refund until at least mid-February, even if you e-file early.
Use our Tax Refund Calculator to estimate how the Child Tax Credit and ACTC will affect your overall refund. The calculator accounts for dependents, filing status, and income phase-outs.
See how the Child Tax Credit affects your refund
Use our free Tax Refund Calculator to estimate your federal refund including the Child Tax Credit, Additional Child Tax Credit, and other dependent credits — all calculated with your actual filing status and income.
Try the Tax Refund Calculator →If you're paying for higher education expenses, you may also qualify for education tax credits like the American Opportunity Tax Credit, which offers up to $2,500 per eligible student.
Frequently Asked Questions
The Child Tax Credit for 2025 (filed in 2026) is worth up to $2,000 per qualifying child under age 17. Up to $1,700 per child is refundable through the Additional Child Tax Credit. The credit begins to phase out at $200,000 AGI ($400,000 for married filing jointly).
The Child Tax Credit begins to phase out at $200,000 of modified adjusted gross income for all filers except married filing jointly, where the threshold is $400,000. The credit is reduced by $50 for every $1,000 of income above the threshold.
The Child Tax Credit is partially refundable. Up to $1,700 per qualifying child can be refunded as the Additional Child Tax Credit (ACTC) if you have earned income of at least $2,500. The refundable portion is calculated as 15% of earned income above $2,500, capped at $1,700 per child.
To qualify, a child must (1) be under age 17 at the end of the tax year, (2) be your son, daughter, stepchild, foster child, sibling, half-sibling, stepsibling, or a descendant of any of them, (3) have lived with you for more than half the year, (4) not have provided more than half of their own support, and (5) be a US citizen, national, or resident alien with a valid Social Security number.
Yes, the Additional Child Tax Credit (ACTC) allows you to receive up to $1,700 per child as a refund even if you owe no federal income tax. You must have earned income of at least $2,500. The refundable amount is 15% of your earned income above $2,500, up to the $1,700 per-child cap.
The Additional Child Tax Credit is the refundable portion of the Child Tax Credit. If your CTC exceeds your tax liability, you may receive up to $1,700 per qualifying child as a refund. To qualify, you need earned income of at least $2,500. The ACTC is claimed on IRS Form 8812.
The Other Dependent Credit (ODC) is worth up to $500 per qualifying dependent who does not meet the age or relationship tests for the Child Tax Credit. This includes children age 17 or older, adult dependents such as elderly parents, and other relatives who qualify as dependents. This credit is non-refundable.
You claim the Child Tax Credit by filing IRS Form 1040 or 1040-SR and attaching Schedule 8812 (Credits for Qualifying Children and Other Dependents). You will need each child's Social Security number, your filing status, and your adjusted gross income. E-file is recommended for faster processing.
Parents saving for their children's future education costs can benefit from 529 plan tax benefits, including state income tax deductions and federally tax-free withdrawals.
This Child Tax Credit guide has been verified against official IRS Publication 17, IRS Schedule 8812 instructions, and the One Big Beautiful Bill Act legislative text. All credit amounts, phase-out thresholds, and eligibility rules match official IRS guidance for the 2025 tax year. I review and update this guide whenever the IRS releases new guidance or Congress enacts tax legislation that affects the Child Tax Credit.