Child Tax Credit
A federal tax credit of up to $2,200 per qualifying child under age 17 for 2025 and 2026 (raised from $2,000 by OBBBA). Up to $1,700 is refundable as the Additional Child Tax Credit, benefiting families with little or no tax liability.
The Child Tax Credit (CTC) provides up to $2,200 per qualifying child under age 17 for 2025 and 2026 — the One, Big, Beautiful Bill Act (OBBBA) raised the maximum from $2,000 starting in 2025 and made it permanent. To qualify, the child must be your dependent, a US citizen or resident alien, have a valid Social Security number, and live with you for more than half the year. The credit directly reduces your federal income tax liability dollar for dollar.
Up to $1,700 of the CTC is refundable through the Additional Child Tax Credit (ACTC). Families whose CTC exceeds their tax liability can receive the ACTC as a cash refund, calculated as 15% of earned income above $2,500. This refundable component makes the credit accessible to lower-income working families who owe little or no income tax.
The CTC begins phasing out at a modified AGI of $200,000 for single filers and $400,000 for married filing jointly. For each $1,000 (or fraction thereof) that your MAGI exceeds the threshold, the credit is reduced by $50. A separate $500 nonrefundable credit is available for other dependents who do not qualify for the full CTC, such as older children or elderly parents claimed as dependents.
Related Terms
Additional Child Tax Credit (ACTC)
The refundable portion of the Child Tax Credit, worth up to $1,700 per child for 2025 and 2026. Families who owe less tax than their CTC amount can receive the ACTC as a cash refund.
Earned Income Credit (EITC)
A refundable tax credit for low- to moderate-income workers. The amount depends on income, filing status, and number of qualifying children — worth up to $7,830 in 2025 with three or more children.
Adjusted Gross Income (AGI)
Your gross income minus specific adjustments such as student loan interest, IRA contributions, and self-employment tax. AGI is the starting point for calculating your taxable income.
Child Tax Credit
A tax credit worth up to $2,200 per qualifying child under age 17 for 2025 and 2026 (raised from $2,000 by OBBBA). Up to $1,700 is refundable as the Additional Child Tax Credit, meaning you can receive it even if you owe no tax.