What the Child Tax Credit is and who can claim it

The Child Tax Credit is a tax reduction you claim on your federal income tax return if you have dependent children. It reduces the amount of federal income tax you owe, dollar for dollar. For 2025, the credit is $2,000 per child under age 17 at the end of the tax year.

You claim the credit when you file your tax return with the IRS. The credit applies to children who are your biological children, stepchildren, adopted children, or foster children, and who live with you for more than half the year. The child must have a valid Social Security number and be a U.S. citizen, national, or resident alien.

The credit reduces your tax liability directly. If you owe $3,000 in federal taxes and you have two may have access to children, you can claim $4,000 in credits, which would reduce your tax to zero and generate a refund of $1,000 (depending on other rules).

Key Takeaways

  • The Child Tax Credit is $2,000 per may have access to child under 17 for the 2025 tax year.
  • Your income determines whether you receive the full credit or a reduced amount; the phase-out begins at $400,000 for married couples filing jointly and $200,000 for single filers.
  • Part of the credit may be refundable, meaning you can receive money back even if you owe no taxes, but the refundable portion is capped at $1,700 per child for 2025.
  • You claim the credit on your federal tax return by listing each child's name and Social Security number on Form 1040 or through tax software.
  • The child must be under 17 at the end of the tax year, live with you for more than half the year, and have a valid Social Security number.

Income limits and how they affect your credit

The amount of credit you receive depends on your modified adjusted gross income (MAGI). For 2025, the credit begins to reduce if your MAGI exceeds $400,000 for married couples filing jointly, $200,000 for single filers, and $200,000 for heads of household.

For every $1,000 (or fraction thereof) over the threshold, the credit reduces by $50. If you are a single filer with MAGI of $210,000, you are $10,000 over the limit. That triggers a $500 reduction ($50 × 10), bringing your credit from $2,000 to $1,500 per child.

If your income is below the threshold, you receive the full $2,000 credit per child. There is no lower income limit — you can claim the credit even if you have little or no income, as long as you have a tax filing requirement or choose to file.

Refundable versus non-refundable portions

The Child Tax Credit has two parts: a non-refundable portion and a refundable portion. The non-refundable portion reduces your tax liability but cannot result in a refund if your tax is already zero. The refundable portion, called the Additional Child Tax Credit, can result in a refund even if you owe no federal income tax.

For 2025, up to $1,700 per child is refundable. This means if you have $800 in federal tax liability and claim $2,000 in credits, the first $800 wipes out your tax, and the remaining $1,200 can be refunded to you — but only up to the $1,700 refundable cap per child. If you have three children, the refundable portion could be up to $5,100 total.

To receive the refundable portion, you must have earned income (wages, self-employment income, or certain other income). The refundable credit is limited to 15 percent of your earned income above $2,500. This calculation is done on Schedule 8812, which you file with your tax return.

How to claim the credit on your tax return

You claim the Child Tax Credit by listing each may have access to child on your federal tax return. On Form 1040, you enter the child's name, date of birth, relationship to you, and Social Security number in the "Dependents" section. Tax software walks you through these fields and automatically calculates the credit based on your income and the number of children.

If you use a tax preparer or file on your own, you will need each child's Social Security number before you file. The IRS matches the number on your return to Social Security Administration records; if the number is wrong or missing, the credit will be denied and your return may be delayed.

The credit is claimed on the year the child turns 17 or younger. Once a child turns 17, you cannot claim the Child Tax Credit for that child in future years, though you may be able to claim a $500 credit for other dependents if they meet different requirements.

What documents you need to gather

Before you file, collect the following information for each child: full legal name, date of birth, and Social Security number. You will also need your own Social Security number or Individual Taxpayer Identification Number (ITIN) and your spouse's if filing jointly.

Have your income documents ready: W-2 forms from employers, 1099 forms for self-employment or other income, and records of any deductions you plan to claim. If you are claiming the refundable portion of the credit, you will need to document your earned income clearly.

Keep records of custody arrangements if the child does not live with you full-time. The IRS may request proof that the child lived with you for more than half the year, such as school records, medical records, or lease agreements showing your address.

Changes and updates for the 2025 tax year

The credit amount and income thresholds are adjusted each year for inflation. For 2025, the credit remains $2,000 per child, and the income phase-out thresholds are $400,000 for married couples filing jointly and $200,000 for single filers. The refundable portion cap is $1,700 per child.

These amounts are set by federal law and do not change unless Congress passes new legislation. The IRS publishes updated amounts each January. If you filed in prior years, check the IRS website or your tax software to confirm the current year's amounts before you file.

Some states also offer their own child tax credits or child-dependent credits. These are separate from the federal credit and are claimed on your state tax return. Contact your state tax agency or check your state's tax forms to see if you may have access to for additional state-level credits.

Frequently Asked Questions

Can I claim the credit for a child who does not have a Social Security number?

No. The child must have a valid Social Security number for you to claim the credit. If your child was born in the United States but does not yet have a number, you can request one from the Social Security Administration before you file. If your child is not a U.S. citizen or resident alien, you cannot claim the credit.

What if my child's parents are divorced or separated?

Only one parent can claim the credit per child per year. Generally, the parent with primary custody (who the child lives with for more than half the year) claims the credit. If custody is split equally, the parent with the higher income typically claims it, but you and the other parent can agree otherwise. The other parent must sign a form agreeing not to claim the child.

Do I have to file a tax return to get the refundable portion of the credit?

Yes. You must file a federal income tax return to claim any part of the Child Tax Credit, including the refundable portion. If you have little or no income, you may still need to file to receive the refund. Use the IRS filing requirements tool on IRS.gov to determine whether you must file.

What happens if I claim a child who is not actually my dependent?

The IRS will deny the credit and may impose penalties if the error is intentional. If it is a mistake, you can file an amended return (Form 1040-X) to correct it. Intentional false claims can result in civil penalties up to 75 percent of the underpaid tax and criminal prosecution.

Can I claim the credit if I am claimed as a dependent on someone else's return?

No. If another person (usually a parent) claims you as a dependent, you cannot claim the Child Tax Credit for your own children. Only the person who claims you as a dependent can claim credits for their dependents.