Child Tax Credit 2025: Amounts, Eligibility, and Refundable Portion
The Child Tax Credit (CTC) is one of the most significant tax benefits available to families with children. It directly reduces your federal income tax bill — and a portion may be refundable, giving money back even if you owe no tax.
2025 Child Tax Credit Amounts
| Feature | Amount |
|---|---|
| Maximum CTC per qualifying child | $2,200 |
| Maximum refundable portion (ACTC) per child | $1,700 |
| Age limit | Child must be under age 17 at end of tax year |
| Income phase-out begins (single) | $200,000 MAGI |
| Income phase-out begins (MFJ) | $400,000 MAGI |
| Phase-out reduction | $50 reduction per $1,000 of income above threshold |
Who Is a Qualifying Child?
To claim the Child Tax Credit, the child must meet ALL of the following tests:
- Age test: Under age 17 at the end of the tax year
- Relationship test: Your child, stepchild, foster child, sibling, half-sibling, or a descendant of any of these
- Residency test: Lived with you for more than half the tax year
- Support test: Did not provide more than half of their own financial support
- Dependency test: You are claiming them as a dependent on your return
- Citizenship test: U.S. citizen, U.S. national, or U.S. resident alien
- Social Security Number: Must have a valid SSN issued before the due date of your return (including extensions)
The Refundable Portion: Additional Child Tax Credit (ACTC)
The Child Tax Credit is partially refundable through the Additional Child Tax Credit (ACTC):
- Up to $1,700 per qualifying child is refundable in 2025 (even if you owe no tax)
- The ACTC is calculated as 15% of earned income above $2,500
- The total CTC and ACTC together cannot exceed $2,200 per child
- Use Form 8812 to calculate both the CTC and the ACTC
Example: Family with 2 children, $40,000 income, $0 tax liability
CTC would be $4,400 total (2 × $2,200), but since they owe $0 in taxes, the non-refundable portion cannot help. However, they can still receive up to $3,400 (2 × $1,700) as a refund through the ACTC.
Income Phase-Out Explained
The credit is reduced for higher-income taxpayers:
- For every $1,000 (or part of $1,000) of MAGI above the threshold, the credit is reduced by $50
- Example: Single filer with MAGI of $210,000 has income $10,000 above threshold → 10 × $50 = $500 reduction per child
- For a single child: $2,200 − $500 = $1,700 remaining credit
- For higher incomes, the credit may phase out completely
Other Child-Related Tax Benefits
- Child and Dependent Care Credit: For childcare expenses — up to $1,050 (one child) or $2,100 (two or more children). See our Tax Credits guide.
- Earned Income Tax Credit (EITC): For low-to-moderate income working families — increases significantly with children. See our EITC guide.
- Head of Household filing status: If you're a single parent, you may qualify for lower tax rates and a higher standard deduction. See our Filing Status guide.
- 529 college savings plans: Tax-advantaged savings for your child's future education. See our Education Credits guide.