Parents and families filing federal tax returns may have several tax credits available, and IRS guidance now points to a higher Child Tax Credit amount for eligible taxpayers.
Eligible parents may claim up to $2,200 per qualifying child for the 2025 tax year.
IRS Tax Tip 2026-17, dated March 3, 2026, lists the updated amount as part of broader tax benefits for parents and families.
Child Tax Credit rules matter because the credit can reduce a family’s federal tax bill. In some cases, part of the credit can also increase a refund through the Additional Child Tax Credit.
Families should not assume every child or dependent qualifies in the same way.
What Changed With the Child Tax Credit
Eligible taxpayers can now claim a Child Tax Credit of up to $2,200 per qualifying child.
Tax software guidance lists the $2,200 amount for both the 2025 and 2026 tax years.
Income can reduce the final credit amount.
Parents with modified adjusted gross income above the phase-out thresholds may receive a smaller credit, and some high-income taxpayers may see the credit reduced to $0.
Recent tax law changes made several Child Tax Credit rules permanent and increased the maximum credit amount.
Updated rules also require taxpayers to provide their own Social Security numbers to claim the credit.
Law changes signed in July 2025 also mean families need to pay close attention to Social Security number rules before filing. A child’s valid Social Security number is not enough by itself if the taxpayer does not meet the identification requirements. Basic eligibility focuses on age, relationship, dependency status, residency, citizenship status, and Social Security number requirements. A qualifying child generally must be under age 17 at the end of the year. Tax software guidance describes that as age 16 or younger on the final day of the tax year. For parents with younger children, the credit can be part of a broader household budget that also covers everyday child-related costs, including doctor visits, childcare, clothing, feeding supplies, and baby gear such as a stroller from MomCozy. Accepted family relationships can include a son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of those relatives. A grandchild, niece, or nephew may qualify when the other rules are met. Parents should make Social Security numbers an early filing priority. IRS guidance says the first step is making sure each child has a Social Security number. For family credits, both the child and the taxpayer must have valid Social Security numbers. Taxpayer Social Security number rules can also affect eligibility. Tax software guidance says the taxpayer’s Social Security number must be valid for employment in the United States and issued before the return due date, including extensions. For joint returns, one spouse must have a Social Security number valid for employment, while the other spouse must have either a Social Security number or an ITIN issued by the return due date. Parents can claim the full Child Tax Credit only if income does not exceed the phase-out thresholds. For single filers, the full credit is available up to $200,000 of modified adjusted gross income. For married couples filing jointly, the full credit is available up to $400,000. Income above those limits reduces the credit. Tax software guidance explains the reduction as $50 for every $1,000 of modified adjusted gross income above the threshold. Excess income is rounded up to the nearest $1,000 when calculating the reduction. A married couple filing jointly with four qualifying children would begin with an $8,800 base credit. If their modified adjusted gross income is $412,500, their income exceeds the $400,000 threshold by $12,500. Since that excess is rounded up to $13,000, the credit is reduced by $650. The final Child Tax Credit amount would be $8,150. Base credit math is simple before phase-out rules apply. Parents multiply the number of qualifying children by $2,200. A family with three qualifying children would start with a $6,600 base amount before applying income limits and other restrictions. Income limits do not only matter for high earners. Accurate modified adjusted gross income is also important for families with side income, self-employment income, investment income, bonuses, or filing-status changes. Child Tax Credit is only partially refundable. Refundability matters because a nonrefundable credit can reduce tax owed to zero, but it cannot create a refund by itself. The Additional Child Tax Credit is the refundable part of the Child Tax Credit. Parents may receive up to $1,700 per qualifying child as the refundable portion for 2025 and 2026, depending on income and tax situation. The Additional Child Tax Credit can only be claimed when the total Child Tax Credit is greater than the taxpayer’s pre-credit tax liability. In practical terms, families need enough qualifying credit left after reducing their tax bill to possibly claim a refundable amount. Earned income rules also apply. Taxpayers need at least $2,500 of earned income to claim the Additional Child Tax Credit. Refundable amount generally cannot exceed 15% of earned income above $2,500. Certain taxpayers with three or more qualifying children may qualify for a higher limit. A family with two qualifying children would have a maximum refundable cap of $3,400 for 2025. That amount is calculated as two children multiplied by the $1,700 refundable cap. Foreign income rules can block the refundable credit in some cases. Taxpayers generally cannot claim the Additional Child Tax Credit if they file Form 2555 for the foreign earned income exclusion, foreign housing deduction, or foreign housing exclusion. Parents claim the Child Tax Credit when they file their federal income tax return. Accurate filing is important because eligibility depends on dependent information, Social Security numbers, income, and credit calculations. Taxpayers use Schedule 8812 with Form 1040 to calculate the Child Tax Credit and Additional Child Tax Credit. Prior IRS action can create extra filing requirements. If the IRS denies or reduces the Child Tax Credit for a reason other than a math or clerical error, taxpayers generally must file Form 8862 to claim the credit again in a later tax year. Incorrect claims can carry serious consequences. Taxpayers may lose the ability to claim the credit for two years if the IRS finds reckless or intentional disregard of the rules. A fraudulent claim can lead to a 10-year ban. Parents should review the return before filing, especially when a child was born during the year, custody changed, a Social Security number was recently issued, income rose above the threshold, or another person may also try to claim the same child. What happens when divorced parents both try to claim the kids as dependents? https://t.co/BpPaX1qcCG — Dawn Veltman (@DawnVeltman) January 29, 2018 Divorced or separated parents often face extra Child Tax Credit questions. In general, the custodial parent claims the credit. In some cases, a noncustodial parent may be allowed to claim the child if the proper rules and documentation apply. Only one return can claim the Child Tax Credit for the same child. If multiple people claim the same child, IRS tie-breaker rules may decide who has the stronger claim. Tie-breaker rules can become important in shared households. If no parent can claim the child, the eligible person with the highest adjusted gross income may claim the credit. If a parent can claim the child but no parent actually does, another eligible person may claim the child only if that person’s adjusted gross income is higher than the adjusted gross income of any parent who could claim the child. For tie-breaker purposes, a “parent” means a biological or adoptive parent. A stepparent or foster parent is not treated as a parent for that rule unless that person adopted the child. Families with dependents who do not qualify for the Child Tax Credit may still review the Credit for Other Dependents. That credit may be worth up to $500 for each qualifying dependent. It can apply to dependents of any age, including elderly parents, but it does not apply to someone who qualifies for the Child Tax Credit. Eligible parents may claim up to $2,200 per qualifying child, but the final amount depends on the child’s eligibility, the taxpayer’s income, Social Security number rules, and refundability limits. Up to $1,700 per qualifying child may be refundable through the Additional Child Tax Credit. Earned income limits, tax liability, filing choices, and foreign income rules can affect the amount a family actually receives. Parents should review IRS guidance or speak with a tax professional before filing, especially in cases involving shared custody, multiple dependents, mixed filing-status issues, adoption expenses, or income above the phase-out thresholds. Careful filing can help families claim the credit they qualify for while avoiding delays, denials, or penalties.
Who Qualifies for the $2,200 Credit?
A child must meet several rules before a parent can claim the full Child Tax Credit.
Income Limits Parents Need to Know
Refundable Portion
How Parents Claim the Credit
Special Situations for Families
FAQs
Summary
