If you’re staring at your 2025 tax forms and wondering if the government is finally giving parents a break, the answer is... sort of. Honestly, it’s a bit of a mixed bag. After a lot of back-and-forth in D.C. and the passage of the One Big Beautiful Bill Act (OBBBA) in July 2025, the numbers have shifted again.
Basically, for the 2025 tax year (the taxes you file in early 2026), the Child Tax Credit (CTC) has been bumped up. You’re looking at $2,200 per qualifying child. That’s a $200 increase from the previous year.
But here’s the kicker: just because the credit is $2,200 doesn't mean you’re getting a $2,200 check in the mail. Taxes are never that simple, right? The amount you actually see depends heavily on how much you earned and whether you owe the IRS money to begin with.
The $2,200 vs. $1,700 Breakdown
There is a major distinction you need to understand between a "nonrefundable" credit and a "refundable" one.
The full $2,200 is a nonrefundable credit. This means it can wipe out your tax bill. If you owe $2,000 in taxes, the credit wipes that out to zero. But—and this is a big but—if you owe $0 in taxes, that $2,200 doesn't just turn into a $2,200 refund.
✨ Don't miss: Cuanto son 100 dolares en quetzales: Why the Bank Rate Isn't What You Actually Get
That’s where the Additional Child Tax Credit (ACTC) comes in.
For 2025, the refundable portion—the part you actually get back as a refund even if you owe no tax—is capped at $1,700 per child.
To get that $1,700, there's a formula involved. You need to have earned at least **$2,500** in 2025. Anything you earned over that $2,500 threshold, you get 15% of as a credit, until you hit that $1,700 ceiling.
Example: If you earned $15,000 in 2025:
🔗 Read more: Dealing With the IRS San Diego CA Office Without Losing Your Mind
- Take $15,000 - $2,500 = **$12,500**.
- Multiply $12,500 by 15% = **$1,875**.
- Since $1,875 is higher than the $1,700 cap, you’d get the full **$1,700** refund per child.
Who Actually Qualifies for the 2025 Credit?
The IRS is pretty strict about who counts as a "qualifying child." It’s not just about them being your kid; they have to hit a specific checklist.
- Age: They must be 16 or younger at the end of 2025. If your teen turned 17 on December 31, 2025, you’re out of luck for the big credit (though you might still get the $500 "Other Dependent" credit).
- Relationship: They have to be your son, daughter, stepchild, foster child, brother, sister, or a descendant of any of those (like a grandchild or nephew).
- Support: The child cannot have provided more than half of their own financial support for the year.
- Residency: They must have lived with you for more than half the year.
- Social Security Number: This is a big one. Both the child and at least one parent (if filing jointly) must have a work-eligible Social Security Number issued before the tax deadline. The OBBBA made this SSN requirement for parents a permanent fixture.
Income Limits: Will You Get Phased Out?
The good news is that most middle-class families won't see their credit reduced. The "phaseout" only starts once your Modified Adjusted Gross Income (MAGI) hits certain levels.
- Married Filing Jointly: The credit starts disappearing if you make over $400,000.
- All Other Filers: The threshold is $200,000.
If you're over those limits, the IRS shaves off $50 from your credit for every $1,000 you earn over the line. So, if you're a high earner, your "how much do you get per child on taxes 2025" answer might actually be $0.
Don't Forget the States
While the federal $2,200 is the big headline, several states have stepped up with their own versions of the Child Tax Credit.
💡 You might also like: Sands Casino Long Island: What Actually Happens Next at the Old Coliseum Site
States like Colorado are being particularly generous in 2025 with their Family Affordability Tax Credit, offering up to $3,200 per child for those under 6, depending on income. Minnesota is another heavy hitter, offering a refundable $1,750 per child.
In contrast, states like Arizona and Idaho have much smaller, nonrefundable credits ($100 and $205 respectively). It really pays to check your local state tax laws this year because the state-level shifts have been massive since the July 2025 federal legislation.
Other Credits You Might Be Missing
If your child is 17 or 18, or a full-time college student up to age 23, you can't claim the $2,200. However, you can claim the Credit for Other Dependents, which is worth **$500**. It’s nonrefundable, so it only helps if you actually owe taxes.
Then there’s the Child and Dependent Care Tax Credit. This one is for the money you actually paid for daycare or a sitter so you could go to work. For 2025, this has been significantly expanded. You can now claim up to $3,000 in expenses for one child or $6,000 for two or more. Depending on your income, you could get back up to 50% of those costs.
What You Should Do Now
Tax season is usually a headache, but for 2025, being organized is the difference between a $1,700 refund and leaving money on the table.
- Check your SSNs: Ensure your child's Social Security card is handy and valid for work. If you're waiting on a number for a newborn, get that application in ASAP.
- Track Childcare Costs: If you paid for a summer camp or a licensed daycare, get those statements now. The 2025 expansion of the Dependent Care credit is too big to ignore.
- Watch the Calendar: If you are claiming the refundable ACTC, the IRS generally cannot issue those refunds until mid-February 2026. Don't plan on having that money for early February bills.
- Review State Eligibility: If you live in a state like New York, California, or New Jersey, check the income ceilings for state-specific credits. They often have much lower income limits than the federal $200k/$400k.
Basically, the 2025 tax year is a bit more lucrative for parents than 2024 was. Between the $2,200 federal credit and the revamped state programs, the "mom and dad tax" is slightly less painful this time around. Just make sure you’re filing Schedule 8812, or you’ll miss the refundable portion entirely.