2026 Filing Season Change
Child Tax Credit Increased to $2,500 per Child for 2025
The Child Tax Credit increases to $2,500 per qualifying child for 2025 returns, up from $2,000 per child. More of the credit is refundable for lower-income families.
Who Qualifies
Taxpayers with qualifying children under age 17 as of December 31, 2025. Child must have a valid SSN, be a U.S. citizen or resident, and be claimed as a dependent. Income phaseout begins at $200,000 (single) / $400,000 (married filing jointly).
Key Facts
Credit increased to $2,500 per qualifying child, up from $2,000.
Refundable portion (Additional Child Tax Credit) increased to $1,900 per child.
Qualifying child must be under age 17 on December 31, 2025.
Income phaseout begins at $200,000 AGI (single) / $400,000 (married filing jointly).
Child must have a valid Social Security number (not an ITIN).
Claimed on Schedule 8812, which calculates both the nonrefundable and refundable portions.
Important Deadlines
Apr 15, 2026
SoonFederal filing deadline — file to claim Child Tax Credit
Oct 15, 2026
On TrackExtended deadline — still eligible for refundable CTC
Apr 15, 2029
On TrackLast day to file 2025 return and claim CTC refund (3-year limit)
FAQ
How much is the Child Tax Credit for 2025?
The Child Tax Credit is $2,500 per qualifying child for 2025 returns, an increase from the prior $2,000 per child. For example, a family with 3 qualifying children could receive up to $7,500 in credits.
Is the 2025 Child Tax Credit refundable?
Partially. Up to $1,900 per child is refundable as the Additional Child Tax Credit (ACTC), meaning you can receive it even if you owe no federal income tax. The remaining $600 per child is nonrefundable and can only offset tax owed.
What are the income limits for the Child Tax Credit in 2025?
The full $2,500 credit is available to single filers with AGI up to $200,000 and married filing jointly up to $400,000. Above those thresholds, the credit phases out by $50 for every $1,000 of additional income.
What qualifies a child for the 2025 Child Tax Credit?
The child must be under age 17 on December 31, 2025, have a valid Social Security number, be a U.S. citizen or resident alien, be your dependent, live with you for more than half the year, and not provide more than half of their own financial support.
How do I claim the increased Child Tax Credit?
Complete Schedule 8812 (Credits for Qualifying Children and Other Dependents) with your Form 1040. The schedule calculates both the nonrefundable credit (up to $2,500 per child) and the refundable Additional Child Tax Credit (up to $1,900 per child).
Other 2026 Tax Changes
No Tax on Tips
Tips are now excluded from federal income tax for qualifying tipped workers filing 2025 returns. Claim the exclusion on the new Schedule 1-A.
No Tax on Overtime
Overtime pay is now excluded from federal income tax for W-2 employees filing 2025 returns. Claim the exclusion using the new Schedule 1-A.
Schedule 1-A
Schedule 1-A is a brand-new IRS form for 2025 tax returns. It is used to claim the federal income tax exclusions for tip income and overtime pay under the One Big Beautiful Bill.
Senior Standard Deduction
Seniors age 65 and older receive an additional $4,000 standard deduction on top of the normal amount for 2025 returns, providing significant tax relief for retirees.
All Tax Changes
Complete overview of all tax changes from the One Big Beautiful Bill that affect 2025 federal tax returns filed in 2026, including no tax on tips, no tax on overtime, Schedule 1-A, increased Child Tax Credit, and enhanced senior deduction.