How much is the Child Tax Credit for 2025 after the OBBBA changes?

The Child Tax Credit for 2025 is $2,200 per qualifying child under age 17, up from $2,000 in prior years. The One Big Beautiful Bill Act (OBBBA) increased the maximum credit and made it permanent with inflation indexing starting in 2026.

Key 2025 CTC details:

• Credit amount: $2,200 per qualifying child under age 17
• Refundable portion: Up to $1,700 of the $2,200 can be refundable as the Additional Child Tax Credit (ACTC), meaning you can receive that amount as a refund even if your tax bill is zero
• Inflation indexing: Beginning in 2026, the $2,200 amount will be adjusted for inflation each year
• SSN requirement: Both the taxpayer and the child must have valid Social Security numbers (ITIN holders do not qualify)

Income phase-out thresholds:

• The credit begins to phase out at $200,000 MAGI for single filers and $400,000 for married filing jointly
• For every $1,000 (or fraction thereof) above the threshold, the credit is reduced by $50
• So at $220,000 single MAGI, the credit would be reduced by $1,000 (from $2,200 to $1,200 per child)

The $500 credit for other dependents (non-child dependents such as college students or elderly parents who do not meet the qualifying child rules) remains at $500 and has been made permanent under the OBBBA.

How to claim it: The Child Tax Credit is claimed on Schedule 8812 and flows through to Form 1040. If your refundable ACTC exceeds your tax liability, the IRS will pay you the difference as a refund.

Change from 2024: The prior year credit was $2,000. This $200 increase per child is due to the OBBBA enhancement effective for tax years beginning in 2025.