If you have kids, this Christmas season must have drawn you dry—economically speaking. Watching them open up presents under the Christmas tree may warm your heart, but your wallet differs. Thankfully, the IRS has tax credits for those households who have children under their roof. Raising the new generation is a tough job, which is why the IRS makes sure to cut some slack for those who are taking on this task.
The federal Child Tax Credit is a major financial perk designed to help moms and dads cover the heavy price tag of raising kids. The numbers prove that for a long time now, this credit has lowered taxes for millions of homes, with the specific amount depending on how much you earn, how you file, and your headcount of eligible kids.
Because part of this credit is refundable, some families actually get a check back from the government even if they don’t owe any taxes at all. There are some big updates for the 2025 tax year coming from President Trump’s latest economic package, which has earned the nickname of the “big beautiful bill.” Signed into law on Independence Day of 2025, this act raised the top payout from $2,000 to $2,200 for every child and tied the number to inflation so it keeps up with the cost of living.
What is the child tax credit?
The federal child tax credit is a major discount that gives families up to $2,200 for every kid who is younger than 17. Getting this money depends on things like how much you earn and how old your child is, but you might be able to get it even if you don’t usually have to send in tax forms.
Since part of this credit is “refundable,” the government could actually send you a check for up to $1,700 per child if the credit pays off all your taxes and there is leftover money. This specific refund money for the 2025 tax year is known as the Additional Child Tax Credit.
Parents can get the full amount if they make under $200,000 alone or under $400,000 as a married couple. The money goes away completely for people who earn more than that.
This credit has helped about 40 million American families every year. However, that number might change because President Trump’s new tax laws added strict rules about having a Social Security Number.
Who can get the child tax credit?
You won’t automatically get this credit, and it’s not just about how much money you make. President Trump’s team made the rules stricter; starting in 2025, both parents and kids need a Social Security Number to get the money.
Your family has to meet these rules to get the credit:
- Age: Your child has to be younger than 17 when the year ends.
- Relationship: The kid needs to be related to you, like a son, daughter, stepchild, foster child, sibling, or even a grandchild.
- Financial Support: The child can’t pay for more than half of their own living costs during the year.
- Residency: The child has to live in your home for at least six months of the year.
- Dependent Status: You have to list the child as a dependent on your tax forms.
- Citizenship: The child needs to be a U.S. citizen or a legal resident. Also, for the first time, single parents without a Social Security number can’t get the credit. This means if the parent doesn’t have that number, the child can’t get the credit either, even if the child has one.
- Income: Parents can’t make too much money. If you earn over a certain amount, the government lowers your credit until it goes away entirely.
FAQs
I get Social Security benefits. Can I still get this tax credit?
Yes; even if your main income is from Social Security, you might still qualify. If you earned at least $2,500 from a job or self-employment last year, you can claim the “refundable” part of the credit. This means the IRS could send you a check for up to $1,700 per child, even if you don’t owe any taxes.
I don’t usually file taxes because my income is low. Do I have to file now?
Yes. In order to get this money, you must send a tax return to the IRS. You will need to fill out Form 1040. It might seem like a hassle, but it is the only way for the government to know where to send your $2,200 credit.
Does my new baby qualify?
If your baby was born before midnight on December 31, 2025, they count! They are considered to have lived with you for the whole year, so you can claim the full credit for them.