The Child Tax Credit is getting another update in 2025 under the new One Big Beautiful Bill. While it doesn’t match the expanded benefits from the 2021 pandemic relief, the credit continues to provide significant support, particularly for middle-income families facing rising costs.
Child Tax Credit Adjusted to $2,200 per Child
The 2021 American Rescue Plan temporarily increased the Child Tax Credit to $3,600 per child under age 6 and $3,000 per child aged 6 to 17. It also made the credit fully refundable, allowing families who didn’t owe any federal income tax to receive the full amount.
Under the new policy, the credit reduces to $2,200 per child under 17—close to what it was prepandemic. While there’s no extra boost like before, it’s still a nice tax break.
Bigger Income Limits Mean More Families Get the Full Credit
The good news? More families can now qualify for the tax credit thanks to higher income phaseout thresholds. The credit now begins to phase out at:
- $200,000 for single filers
- $400,000 for married couples filing jointly
Before 2021, phaseouts kicked in at much lower levels—$75,000 and $150,000, respectively. This is a welcome change for middle-income families, especially those in high-cost areas, who may have previously phased out under the old limits.
How To Claim the Child Tax Credit
Claiming the Child Tax Credit is pretty straightforward; however, you want to make sure you include the correct forms so you don’t miss out.
- Use IRS Form 1040 to file your federal taxes
- Attach Schedule 8812, the form for the Child Tax Credit, to claim the credit
- File by the tax deadline, which is April 15, 2026
The IRS Is Cracking Down on Eligibility
Before filing, make sure you meet the new requirements from the IRS, as missing or inconsistent information could hold up your credit. Here’s what the IRS now looks for from the qualifying child:
- Age. The child must be under 17 at the end of the tax year.
- Relationship. The child must be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister or even a grandchild, niece or nephew.
- Support. You need to be primarily supporting them; the child can’t provide more than half of their support during the year.
- Residency. To qualify, the child must have lived with you for more than half the year.
- Dependency. You need to claim them as a dependent on your tax return.
- Filing status. The child cannot file a joint tax return with someone else unless they are seeking a refund of withheld or estimated taxes.
- Citizenship. The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
- Social Security number. The child needs a valid Social Security number to work, and it must be issued before your tax return is due (including any extensions).
Watch Out if You Owe Back Taxes
If you have unpaid federal taxes, the IRS can reduce your Child Tax Credit to cover what you owe. So, if you’re behind on payments, you’ll want to clear those debts before filing to avoid losing part of your credit.
Even if your tax bill is low or zero, you could still receive the Child Tax Credit. Because part of the credit is refundable, families may receive up to $1,700 per child, providing crucial support regardless of tax liability.
Before You File
Start by gathering your paperwork. Make sure you have your child’s Social Security number and any custody or relationship documents. In addition, check whether your annual income falls under the phaseout limits, so you have a better idea of what to expect.
If you owe back taxes, it’s best to deal with it now than put it off. If you don’t owe anything, you can begin organizing your documents and preparing for tax season.
And if all this feels overwhelming, getting help from a tax professional or using reliable tax software can make the process easier. Here are some of the best tax software options available.
| Company | Forbes Advisor Rating | Best For | Federal Filing Fee | State Filing Fee | Learn More |
|---|---|---|---|---|---|
   | Best Tax Software for Customer Support | $62.95 | $47.95 | On TaxSlayer’s Website | |
| | Best Free Tax Software | $0 | $0 | On Cash App Taxes’ Website | |
| | Best Tax Software for Value | $25 | $0 | Read Our Full Review | |
| | Best Tax Software if You Need In-Person Help | Starts at $99 | Starts at $75 | ||
| | Best Tax Software for Ease of Use | $89 | $64 per state | On Intuit’s Website | |
 | Best Tax Software for the Self-Employed | $72.95 | $47.95 | On TaxSlayer’s Website |
Bottom Line
The 2025 Child Tax Credit isn’t as big as the pandemic-era boost families got in 2021, but it is still a relief for many, especially middle-income households. With higher income limits, more families can get the full credit this year. That said, the IRS is enforcing stricter eligibility rules. Make sure your paperwork is in order and address any unpaid taxes that could hold up your claim.
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