The maximum Child Tax Credit (CTC) increases from $2,000 to $2,200 per qualifying child.
Up to $1,700 of the credit may be refundable as the Additional Child Tax Credit (ACTC).
Both the credit amount and refundable portion will be adjusted for inflation, so it may increase over time.
The enhanced credit is now permanent. It no longer expires after 2025.
To be eligible:
You have at least one child under age 17 at the end of the tax year.
Children 17 or older may qualify for a different credit.
Your child meets the relationship and residency rules.
You and your child (and your spouse, if filing jointly) all have valid Social Security numbers.
You’re filing a 2025, or later, federal tax return.
NOTE This credit is subject to income limitations. The credit begins to phase out once your Modified Adjusted Gross Income (MAGI) exceeds $200,000 ($400,000 if filing a joint return).
What it means for you:
You may get a slightly larger credit for each qualifying child.
If you’re eligible for the refundable portion, you could receive money back - even if your tax bill is already zero.
Since the credit is now permanent, you can count on this support every year that you remain eligible.