Will the Child Tax Credit Increase in 2025? What Families Should Expect

The Child Tax Credit (CTC) has been a crucial financial support for American families, helping reduce tax burdens and offset the costs of raising children. In 2021, the American Rescue Plan Act temporarily increased the CTC to $3,600 per child under 6 and $3,000 per child aged 6 to 17. However, this expansion expired at the end of 2021.

For 2025, discussions about increasing the CTC to $3,600 continue, but no legislation has been passed. The current CTC remains at $2,000 per qualifying child, with a refundable portion of up to $1,700 for eligible families.

This guide provides updated details on the 2025 Child Tax Credit, eligibility requirements, income limits, and how to claim the credit when filing your tax return.

Key Facts About the 2025 Child Tax Credit

Current Child Tax Credit Structure

For the 2025 tax year, the Child Tax Credit provides up to $2,000 per qualifying child under 17. The credit starts to phase out for higher-income taxpayers, with limits set at:

• $200,000 for single filers
• $400,000 for married couples filing jointly

The refundable portion of the credit is capped at $1,700 per qualifying child, meaning that families without sufficient tax liability can still receive part of the credit as a refund.

Who Qualifies for the Child Tax Credit in 2025?

To claim the Child Tax Credit, families must meet specific eligibility requirements.

1. Age Requirement

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

2. Relationship Requirement

• The child must be your son, daughter, stepchild, foster child, sibling, stepsibling, or a descendant of any of these (e.g., grandchild, niece, or nephew).

3. Support Test

• The child must not have provided more than half of their own financial support during the tax year.

4. Dependent Test

• You must be able to claim the child as a dependent on your tax return.

5. Citizenship Requirement

• The child must be a U.S. citizen, U.S. national, or U.S. resident alien.

6. Residency Requirement

• The child must have lived with you for more than half of the tax year.

7. Income Limits

• The CTC starts phasing out at:
  • $200,000 for single filers
  • $400,000 for married filing jointly

For a detailed explanation, refer to the IRS Child Tax Credit guidelines.

Potential Changes and Legislative Proposals

Several lawmakers have proposed expanding the Child Tax Credit. Notable proposals include:

1. Vice President Kamala Harris has supported restoring the expanded $3,600 credit, along with an additional $6,000 credit for families with infants under one year old.
2. Republican lawmakers have introduced proposals to increase the CTC to $5,000 per child for working families.
3. Some legislators want to make the entire CTC fully refundable, ensuring low-income families can receive the full benefit.

While these proposals are under discussion, no law has been enacted to increase the 2025 Child Tax Credit beyond $2,000 per child.

How to Claim the Child Tax Credit on Your 2025 Tax Return

To claim the Child Tax Credit when filing your 2025 tax return (in 2026), follow these steps:

Step 1: Determine Eligibility

• Ensure your child meets all eligibility criteria (age, residency, income limits, etc.).

Step 2: Complete the Necessary Forms

• File Form 1040 (U.S. Individual Income Tax Return).
• Attach Schedule 8812 (Credits for Qualifying Children and Other Dependents) to calculate the refundable portion of the credit.

Step 3: Calculate the Credit

• Use the IRS worksheet in Schedule 8812 to determine the amount you can claim.

Step 4: File Your Tax Return

• Electronically file your tax return to avoid delays.
• If filing by mail, double-check your forms for accuracy to prevent processing issues.

For official instructions, visit the IRS Child Tax Credit page.

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