Raising kids is expensive, and the IRS knows it. That’s why the Child Tax Credit (CTC) continues to be one of the most valuable tax benefits available to families with children.
For the 2025 tax year, the maximum Child Tax Credit remains at $2,000 per qualifying child, while the refundable portion of the credit—what you can receive even if you owe no tax—increases slightly due to inflation.
Here’s what you need to know.
What Is the Child Tax Credit?
The Child Tax Credit is designed to help families offset the cost of raising children by reducing their tax bill. You can claim it for each child under the age of 17 who meets certain eligibility requirements, including:
- Having a valid Social Security number
- Being your dependent
- Living with you for more than half the year
- Being a U.S. citizen or resident alien
How Much Is the Credit Worth in 2025?
- The maximum credit per child remains at $2,000
- Up to $1,700 of the credit is refundable, meaning you can receive that portion as a refund even if your tax bill is zero
If your credit exceeds the taxes you owe, the refundable amount may be paid out as part of your tax refund—this portion is called the Additional Child Tax Credit.
Who Qualifies?
Eligibility is based on your modified adjusted gross income (MAGI) and filing status. While the income phaseouts haven’t changed for 2025, they generally begin at:
- $200,000 for single filers
- $400,000 for married couples filing jointly
If your income exceeds these thresholds, the credit begins to phase out by $50 for every $1,000 over the limit.
Why It Matters
The Child Tax Credit can make a meaningful difference in your tax return—especially for families with more than one child. Even if you don’t owe taxes, the refundable portion could put real money back in your pocket.
Understanding how much you qualify for and planning ahead ensures you get the full benefit you’re entitled to at tax time. And because the refundable portion adjusts each year with inflation, it’s important to stay current on the numbers and rules.
