2025 Child Tax Credit Increase

For the 2025 tax year (returns filed in early 2026), the federal Child Tax Credit (CTC) has increased from $2,000 to $2,200 per qualifying child.

This increase was made permanent by recent legislation known as the One Big Beautiful Bill Act (OBBBA), which also introduced annual inflation adjustments for the credit starting in 2026.

2025 CTC Details

• Credit Amount: Up to $2,200 per qualifying child under age 17.
• Refundable Portion: The Additional Child Tax Credit (ACTC) remains capped at $1,700 per child. This is the maximum amount you can receive as a refund if your tax liability is zero.
• Income Thresholds: The full credit is available to those with a Modified Adjusted Gross Income (MAGI) of up to $400,000 for married couples filing jointly and $200,000 for all other filers.
• New Requirements: Beginning in 2025, both the child and at least one parent (or the spouse in a joint return) must have a work-authorized Social Security number (SSN) to claim the credit.
• No Monthly Payments: Unlike the 2021 expansion, the 2025 credit is claimed as a lump sum on your tax return; there are no federal advance monthly payments.

Additional 2025 Family Credits

Credit for Other Dependents: A permanent $500 nonrefundable credit is available for dependents who do not qualify for the full CTC (e.g., children 17–18 or full-time students under 24).

Adoption Tax Credit: Increased to $17,280 per child for 2025. Under new rules, up to $5,000 of this credit is now refundable.

Trump Savings Accounts: A new initiative provides a one-time $1,000 federal contribution to tax-advantaged savings accounts for babies born between 2025 and 2028.

For localized benefits, check for state-level credits. For example, Colorado offers up to $3,200 per child under age 6, and Minnesota provides a refundable credit of $1,750 per child.