2025 Child Tax Credit: What Families Need to Know

Starting with your 2025 federal tax return, families will see an increase in the Child Tax Credit, offering more financial support for those raising children.

Increased Maximum Credit

The Child Tax Credit will rise to a maximum of $2,200 per qualifying child, up from $2,000 in 2024. This increase is designed to help offset the rising costs of raising children and provide additional relief to families.

Eligibility Requirements

To qualify for the Child Tax Credit:

• The child must be under age 17 at the end of the tax year.

• The taxpayer must meet income and dependency requirements, which include:

  • The child must be claimed as a dependent.

  • The child must live with the taxpayer for more than half the year.

  • The taxpayer must meet income thresholds that determine the phase-out of the credit.

Refundable Portion: Additional Child Tax Credit

The Additional Child Tax Credit, which is the refundable portion of the credit, remains at a maximum of $1,400 per qualifying child for 2025. This means eligible families who owe less in taxes than their total credit amount may receive a refund for the difference, up to $1,400 per child.