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Child Tax Credit (CTC) | Internal Revenue Service (Tax Year 2025)

Federal Child Tax Credit guidance for tax year 2025, including updated credit amounts, SSN rules, and ACTC refund limits.

JJ Ben-Joseph
JJ Ben-Joseph
💰 Funding Up to $2,200 per qualifying child under age 17 (up to $1,700 refundable through ACTC for tax year 2025)
📅 Deadline Apr 15, 2026
📍 Location United States
🏛️ Source Internal Revenue Service
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Status Update (February 2026)

This page is updated for tax year 2025 returns filed in 2026.

IRS currently states:

  • CTC maximum: $2,200 per qualifying child
  • ACTC maximum refundable amount: up to $1,700 per qualifying child
  • earned income generally must be at least $2,500 for ACTC

Core Eligibility Rules

For 2025, a qualifying child generally must:

  1. Be under age 17 at year-end.
  2. Meet relationship and dependency tests.
  3. Live with you more than half the year (subject to IRS exceptions).
  4. Have a valid SSN for employment issued before return due date (including extensions).

IRS guidance also states taxpayer/spouse identification requirements must be met by due-date timing rules.

2025 SSN Rule Change You Should Not Miss

Schedule 8812 instructions for tax year 2025 added an important filing rule: on a joint return, only one spouse must have a valid SSN for CTC/ACTC eligibility, while the other spouse may have an SSN or ITIN issued by the return due date (including extensions). The qualifying child must still have a valid SSN for CTC/ACTC.

If a child does not have a valid SSN but has another qualifying taxpayer identification number issued by due-date rules, that child may still be relevant for Credit for Other Dependents (ODC) analysis.

Income Phaseout Framework

CTC/ODC phaseout begins above:

  • $400,000 for married filing jointly
  • $200,000 for most other filing statuses

Above those thresholds, credit is reduced under IRS phaseout formulas.

Refund Timing and PATH Act

If your return claims ACTC (or EITC), IRS generally cannot issue refunds before mid-February due to statutory anti-fraud timing rules. This affects the full refund, not only the refundable-credit portion.

How to Claim

  1. Confirm each child meets all qualifying tests.
  2. Gather SSN and residency/dependency support documents.
  3. Complete Schedule 8812 and Form 1040.
  4. E-file and choose direct deposit.
  5. Track refund via IRS tools.

Common Errors

  • SSN mismatches or late-issued SSNs.
  • Two taxpayers claiming the same child.
  • Missing Schedule 8812.
  • ACTC claimed without meeting earned-income rules.
  • Filing without reconciling prior disallowance requirements.

Recordkeeping Checklist

  • SSN records and identity documentation
  • residency and dependency evidence
  • custody or allocation documentation where relevant
  • prior IRS letters if credits were previously reduced/disallowed
  • filed return and Schedule 8812 copy

Dependency Conflict Prevention

If parents are separated or custody changed during the year, resolve who will claim the child before filing season. Keep written records that support your filing position and make sure school, medical, and tax records align. Most CTC delays come from duplicate dependent claims and identity mismatches, not from credit formula errors.

If a Claim Was Previously Disallowed

IRS may require additional forms before CTC/ACTC can be claimed again after prior disallowance. Check filing instructions before submitting a new return. Filing without required reinstatement forms can trigger automatic rejection and refund delay.

Official Sources