Child Tax Credit amounts and yearly changes explained

Quick answer: The Child Tax Credit (CTC) is a federal tax credit for parents/guardians with a qualifying child under age 17. For 2025, the maximum Additional Child Tax Credit (a refundable piece of the CTC) is $1,700 per qualifying child, and there's also a related $500 credit for dependents who don't qualify for the CTC. The dollar figures and income limits can and do change from year to year, often due to inflation adjustments or new legislation.

Explanation:

The Child Tax Credit reduces your tax bill for each qualifying child you claim as a dependent. To use a child for the CTC, the child generally must have a Social Security Number that's valid for employment and issued by the Social Security Administration before the due date of your 2025 return (including extensions)¹. If a dependent doesn't have that qualifying SSN or doesn't meet the CTC's other conditions, you may still be able to claim the Credit for Other Dependents (ODC) instead — the maximum amount you can claim for this credit is $500 for each qualifying dependent².

If your CTC exceeds your tax liability, part of it may be refundable through the Additional Child Tax Credit (ACTC). For 2025, the maximum ACTC amount is $1,700 for each qualifying child³. Note also that the IRS cannot issue refunds before mid-February 2026 for returns that properly claim the ACTC, and this time frame applies to the entire refund, not just the portion associated with the ACTC.⁴

Does the credit change every year? Yes — both the credit amounts and the income limits are subject to change:

• Income phase-outs: The credit amount of your CTC or ODC may be reduced if your modified adjusted gross income (AGI) is more than $400,000 for married filing jointly, or $200,000 for all other filing statuses.⁵
• Legislative changes: Starting in 2025, there's a new rule — to be eligible to claim the credit for other dependents, you, or your spouse if filing jointly, must have a valid SSN or ITIN issued on or before the due date of your return (including extensions)⁶. This reflects the broader tax law changes enacted in 2025 (the One Big Beautiful Bill Act), so older information about the CTC/ODC from before 2025 may no longer apply.

What it depends on:

• Whether the child is a "qualifying child" for CTC purposes (age, relationship, residency, support tests — see IRS Pub. 501)
• Whether the child has the required SSN by the return's due date
• Your filing status and modified AGI
• Whether you're claiming the ODC instead for a dependent who doesn't qualify for the CTC

Because eligibility rules and credit amounts are fact-specific and law changed significantly for 2025–2026, it's worth having a CPA review your specific family and income situation before filing.