Understanding the 2025 Child Tax Credit
This interactive tool helps you explore the key rules for the Child Tax Credit (CTC). Discover who qualifies, how income affects the amount, and calculate a personalized estimate based on the 2025 tax laws.
Maximum Credit per Child
$2,000
This is the total potential credit, but it's non-refundable and subject to income limits.
Maximum Refundable Portion
$1,700
Known as the ACTC, this is the max cash refund per child for eligible families, based on earned income.
Key Eligibility Rule
< 17
A child must be under age 17 on Dec 31, 2025, and have a valid Social Security Number.
Who is a Qualifying Child?
To be eligible for the $2,000 credit, a child must meet all seven of these tests. Failing even one test means the child does not qualify for the main credit, though they may still be eligible for the smaller $500 Credit for Other Dependents. Click each rule to see the details.
1. Age Test (The "Under 17" Rule)
The child must be under age 17 at the end of the tax year. For 2025, this means they must be 16 or younger on December 31, 2025. A child who turns 17 anytime in 2025 is not eligible.
2. Relationship Test
The child must be your son, daughter, stepchild, foster child, brother, sister, half-brother/sister, stepbrother/sister, or a descendant of any of them (like a grandchild, niece, or nephew).
3. Support Test
The child cannot have provided more than half of their own financial support during the year.
4. Dependent Test
You must claim the child as a dependent on your tax return. If you can be claimed as a dependent by someone else, you cannot claim the CTC.
5. Citizenship Test
The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
6. Residency Test
The child must have lived with you for more than half of the year. Certain temporary absences (school, medical care) are counted as time lived with you.
7. TIN Test (The SSN Mandate)
This is a critical rule. The child **must have a Social Security Number (SSN)** valid for employment. A child with an Individual Taxpayer Identification Number (ITIN) is not eligible for the $2,000 credit but may qualify you for the $500 Credit for Other Dependents.
Interactive CTC Calculator
Adjust the sliders and inputs below to model your family's situation. The results and charts will update instantly to show you how the rules for income, age, and TIN affect your potential credit for 2025.
Your Family & Finances
Your Estimated 2025 Credit
Potential Credit
$4,000
Income Reduction
$0
Final CTC
$4,000
Total Tax Benefit
$4,000
Credit vs. Income
Benefit Breakdown
Comparative Scenarios
These two examples show how the rules create dramatically different outcomes. Family A qualifies fully, while Family B loses the credit due to a combination of age, TIN, and high income.
✅ Family A: Full Qualification
- Income (MAGI): $150,000
- Filing Status: Married Filing Jointly
- Child 1: Age 10, with SSN
- Child 2: Age 12, with SSN
- Result: Below income limit, children fully qualify.
- Total Benefit: $4,000
❌ Family B: No Qualification
- Income (MAGI): $450,000
- Filing Status: Married Filing Jointly
- Child 1: Age 10, with SSN
- Child 2: Age 17, with ITIN
- Result: Over income limit, one child is too old & has ITIN.
- Total Benefit: $0
The 2026 "Tax Cliff"
The current rules are set to expire at the end of 2025. If no new law is passed, the Child Tax Credit will revert to its previous, less generous version. This creates significant uncertainty for family financial planning.
| Rule | Current Law (2025) | If Law Expires (2026) |
|---|---|---|
| Max Credit | $2,000 | $1,000 |
| Age Limit | Under 17 | Under 16 |
| Income Limit (MFJ) | $400,000 | $110,000 |
| Child's TIN | SSN Required | SSN or ITIN |
| Other Dependents | $500 Credit | No Credit |
Official Resources & Further Reading
For authoritative guidance and expert analysis, consult these primary sources. Note that IRS Publication 972 is obsolete and has been replaced by Schedule 8812.
