The child tax credit for 2025 is worth up to $2,000 per qualifying child under age 17. Up to $1,700 of this is refundable, meaning you can receive it even if you owe no federal income tax.
To qualify, the child must be under 17 at the end of the tax year, a US citizen, national, or resident alien, lived with you for more than half the year, not provided more than half of their own support, and be claimed as your dependent on your tax return.
The credit begins to phase out at $200,000 of modified adjusted gross income for single filers and $400,000 for married filing jointly. The credit reduces by $50 for every $1,000 of income above these thresholds.
For example, a married couple with two children and $350,000 in income would receive the full $4,000 credit (2 children x $2,000). A married couple earning $450,000 would see their credit reduced by $2,500 ($50 x 50 thousands over the threshold), receiving $1,500.
There is also the credit for other dependents, worth $500 per qualifying dependent who does not qualify for the child tax credit. This includes children aged 17 or 18, full-time college students aged 19 to 24, and other qualifying relatives.
To claim the credit, complete Schedule 8812 with your Form 1040. If you received advance child tax credit payments, you need to reconcile them on your tax return.
The child tax credit directly reduces your tax bill dollar for dollar, making it one of the most valuable tax benefits for families. Two children can reduce your federal tax by $4,000.