The child tax credit has been offered to U.S. taxpayers for nearly 30 years, but its value has varied across presidential administrations.
With the passage of the One Big Beautiful Bill Act, it is scheduled to change once again. The credit’s base amount will increase from $2,000 to $2,200 per child in 2025, although its refundable value will drop from $1,700 to $1,400.
Continue reading for more information and answers to frequently asked questions about the child tax credit.
What Is the Child Tax Credit?
Originally enacted as part of the Taxpayer Relief Act of 1997, the child tax credit was initially a $400 nonrefundable credit that eligible families could apply toward their federal income tax bill. Over the years, it has been expanded multiple times, reaching its highest point in 2021 at $3,000 for children ages 6-17.
“The child tax credit is a way for the government to support families,” says Kenneth Chavis IV, a senior wealth manager with Versant Capital Management in Phoenix, Arizona.
For 2024 tax filings, it provides a partially refundable credit of $2,000 to income-eligible parents whose children are younger than age 17. A tax credit reduces the amount of taxes owed dollar for dollar.
[Read: Here’s What You Can Learn From the Taxes You Filed in 2025]
Is the Child Tax Credit the Same as the Child and Dependent Care Credit?
No, these are separate credits, and taxpayers may be eligible to claim both.
“The government recognized that being a working parent is tough,” says Eric Bronnenkant, head of tax for Edelman Financial Engines. As a result, it offers an additional credit for those who need to pay for child care so they can work.
The child and dependent care credit provides a maximum credit of up to 35% of $3,000 spent on care for one qualifying person, or up to $6,000 spent on care for two or more qualifying persons. The credit amount is dependent on income, and taxpayers who earn more than $43,000 a year can claim a credit equal to no more than 20% of allowable expenses.
How Much Is the Child Tax Credit?
For the 2025 tax year, the child tax credit is $2,200 and can be claimed for each eligible child under the age of 17. This represents a $200 increase from 2024, resulting from the passage of the One Big Beautiful Bill Act. Going forward, the act stipulates that the credit will increase annually at the rate of inflation.
While the act increased the overall value of the child tax credit, it reduced the refundable portion, which the IRS refers to as the additional child tax credit. In 2024, the additional child tax credit was capped at $1,700, but for 2025, it will be reduced to $1,400. This amount will increase each year by the rate of inflation. Refundable tax credits are those that can be returned to taxpayers if they exceed a person’s tax liability.
[Read: How to File a Tax Extension.]
Who Is Eligible to Claim the Child Tax Credit?
Taxpayers must meet income requirements to claim the child tax credit. A person’s adjusted gross income, or AGI, must fall below $200,000 for single filers and $400,000 for those married filing jointly to receive the $2,200 child tax credit. Those with incomes above these amounts may still be able to claim a partial credit.
Beyond the income requirement, a child must live with you at least half the year, have a Social Security number and rely on you for support to be claimed for a credit. Families without both parents holding a work-eligible Social Security number (if filing jointly) will no longer be eligible for the child tax credit, and families earning less than $2,500 will also receive no credit.
If parents are divorced or separated, only one can claim the credit. “A lot of times … it might be spelled out in the divorce agreement,” Chavis says. For instance, a couple might agree to alternate years for claiming the credit.
Being able to claim a child as a dependent has other benefits for a single parent, as well. If you have a qualifying child, you can file as head of household, Chavis explains.
That means your standard deduction will be higher, and you may be subject to higher phaseout thresholds for other tax deductions and credits.
[Related:Are Your Chances of Getting Audited Lower in 2025?]
How Can I Claim the Child Tax Credit?
To receive a child tax credit, you’ll have to file a federal tax return.
To determine eligibility for the child tax credit, most tax software programs will walk you through the qualifications. As long as you are entering information accurately and completely, you can ensure compliance with the rules.
However, if you have any questions, you should talk to a tax professional.
What if I Forgot to Take the Child Tax Credit Last Year?
If you forgot to claim a child tax credit, you can go back and amend your previous return to receive it. However, your child must have had a Social Security number issued by the due date of the return to be eligible for the credit.
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The Child Tax Credit Is Increasing to $2200 – Who Qualifies and How to Cash In originally appeared on usnews.com
Update 07/14/25: This story was published at an earlier date and has been updated with new information
