The Child Tax Credit (CTC) has seen a notable increase for the 2025 tax year, offering American families more financial relief amid rising living costs.
Under the new law passed in July 2025, eligible families can now claim up to $2,200 per child under age 17, with $1,700 refundable through the Additional Child Tax Credit (ACTC).
Here’s a complete breakdown of who qualifies, how much you can receive, and when you’ll get your refund.
CTC 2025 Update: What’s New?
Signed into law under the “One Big Beautiful Bill” (OBBB) on July 4, 2025, the Child Tax Credit increase raises the credit from $2,000 to $2,200 per child, with annual inflation adjustments starting in 2026. While the increase may seem modest, the change offers extra support to millions of households facing financial stress.
| Child Tax Credit 2025 Overview | Details |
|---|---|
| Maximum Credit Per Child | $2,200 |
| Refundable Portion (ACTC) | Up to $1,700 |
| Age Requirement | Under 17 years old |
| Effective Tax Year | 2025 (claimed in 2026) |
| Inflation Adjustment Begins | 2026 onwards |
| Monthly Payments Available? | No, annual refund only |
Eligibility Requirements for CTC 2025
To qualify for the increased Child Tax Credit, you must meet the following IRS criteria:
Child Eligibility
- Must be under 17 at the end of 2025
- Must be a U.S. citizen, national, or resident alien
- Lived with the taxpayer for more than half of 2025
- Claimed as a dependent on your tax return
- Must have a valid Social Security Number
Parent/Guardian Requirements
- At least one parent/guardian must have a work-eligible SSN
- For married couples filing jointly, only one SSN is required
Income Limits
- Single filers: Full credit up to $200,000 Modified Adjusted Gross Income (MAGI)
- Joint filers: Full credit up to $400,000 MAGI
- Phase-out rate: Credit reduced by $50 for every $1,000 over the limit
CTC 2025 Payment Schedule
Unlike in 2021, monthly advance payments are not available in 2025. Instead, the full credit is claimed when you file your 2025 federal tax return in early 2026.
| Milestone | Details |
|---|---|
| Claim Period | Jan – April 2026 (when filing 2025 taxes) |
| Earliest Refund Date (ACTC) | Mid to Late February 2026 |
| Payment Method | Direct deposit or mailed check via IRS |
| Filing Required? | Yes, must file IRS Form 1040 with Schedule 8812 |
Note: By law, refunds containing ACTC or EITC cannot be issued before mid-February, even if your return is filed early.
Why This Matters for Families
The CTC increase gives families an extra $200 per child compared to previous years. With rising costs for childcare, groceries, and housing, this enhancement plays a vital role in improving child well-being and economic stability. The refundable portion ensures even low-income earners benefit—even if they owe little or no federal tax.
Additionally, lawmakers have hinted at future proposals, such as:
- Making the entire credit fully refundable
- Introducing monthly payments again
- Adding a “baby bonus” for infants under 12 months
As of now, none of these ideas have been passed into law.
The Child Tax Credit increase for 2025 marks a meaningful step forward for working families across the U.S. With $2,200 per eligible child, a significant $1,700 refundable, and adjustments for inflation from 2026, this benefit helps cover the rising cost of raising children.
To make the most of this opportunity, ensure you:
- Have valid SSNs for yourself and your child
- Meet income eligibility
- File your 2025 tax return on time
By doing so, you’ll receive your payment by early 2026 and enjoy much-needed financial support.
FAQs
What is the maximum Child Tax Credit for 2025?
Eligible families can receive up to $2,200 per child, with $1,700 of that being refundable.
Is the Child Tax Credit paid monthly in 2025?
No. It is a lump sum paid after you file your 2025 tax return—typically refunded in February–March 2026.
Who qualifies for the CTC in 2025?
Children under 17 with a valid SSN, who live with you over half the year, and meet IRS income guidelines.