The Child Tax Credit, explained in plain English
The Child Tax Credit — CTC — is a federal tax credit for parents and guardians raising a qualifying child. For tax year 2025 (the return you file in 2026), it is worth up to $2,200 per qualifying child under age 17. It reduces your federal income tax dollar for dollar, and part of it — up to $1,700 per child — can come back to you as a refund even if you owe no tax at all. That refundable part is called the Additional Child Tax Credit, or ACTC.
The credit is claimed once a year, on your federal tax return, using Schedule 8812. Its size depends on how many qualifying children you have, how much you earned, and your income. This site explains, step by step, who can qualify, how the IRS calculates the credit, and how to claim it — with the published figures shown, so you can check every number.
- 2025 maximum: $2,200 per qualifying child under age 17; up to $1,700 of it refundable (ACTC).
- The refundable part needs at least $2,500 of earned income and follows a 15% formula.
- The credit phases out above $200,000 of income ($400,000 if married filing jointly), losing $50 per $1,000 over.
- Both you and each qualifying child need a Social Security number valid for employment, from tax year 2025.
- The monthly advance payments you may remember from 2021 have ended — the credit is now claimed once a year on your return.
Start here: the five questions everyone asks
How much is it? Up to $2,200 per child, with up to $1,700 refundable. The maximum amounts guide gives the full 2025 table.
Can I get a refund if I owe no tax? Yes, but only up to $1,700 per child, and only if you have enough earned income. See how the credit is calculated.
Does my child qualify? Age, relationship, residency, support, and the SSN rule all apply. See qualifying child rules.
What if my child is 17 or older? You may still get the $500 Credit for Other Dependents. See credit for other dependents.
How do I claim it? On your return, with Schedule 8812, or with free help. See how to claim.
A note on the figures in these guides
The Child Tax Credit is now indexed to inflation, so its amounts move with the cost of living rather than waiting for Congress to act. Every rates page on this site states the tax year its figures apply to and tells you to check the current figure with the IRS before filing. The main tables here are for tax year 2025, the return filed in 2026. A short note on the reported 2026 figures appears where it helps, labelled as reported figures to confirm when you file.
These guides are general information only. They are not personal tax or legal advice, and they do not replace the IRS rules, Schedule 8812 and its instructions, or Publication 501. Where a rule is complicated or depends on your situation, the guide says so and points you to the IRS.
All ten guides
- CTC explained — what the credit is, why only part of it is refundable, and who it is for
- Maximum amounts 2025 — the full $2,200 / $1,700 / $500 table and the phase-out thresholds
- How the credit is calculated — the ACTC 15% formula, the phase-out slope, and Schedule 8812
- Who qualifies — the taxpayer-side rules: SSN, filing status, and income
- Qualifying child rules — age, relationship, residency, support, and tie-breakers
- Credit for Other Dependents — the $500 nonrefundable credit for older children and other dependents
- How to claim — Schedule 8812, Free File, VITA, and refund timing
- Shared custody and special cases — Form 8332, divorce, temporary absences, birth and adoption years
- Mistakes, audits and amended returns — common errors, IRS notices, and Form 1040-X
- CTC and other benefits — CTC vs EITC vs the child care credit, benefits interaction, state credits
Sources to check: IRS, Child Tax Credit (irs.gov); IRS Schedule 8812 and instructions; IRS Taxpayer Advocate Service, Claiming the Child Tax Credit or Credit for Other Dependents.