What Is The Child Tax Credit For 2025?

MANCHESTER, NH - SEPTEMBER 14: New Hampshire parents and other supporters gather outside of Senator ... [+] Hassan's Manchester office to thank her for child tax credit payments and demand they be made permanent on September 14, 2021 in Manchester, New Hampshire. (Photo by Scott Eisen/Getty Images for ParentsTogether)
Getty Images for ParentsTogether
Many of the tax cuts in the Tax Cuts and Jobs Act (TCJA) of 2017 are set to expire this year. If you’re a parent, you may be wondering what the Child Tax Credit (CTC) looks like for 2025. As lawmakers wrestle with tax policy, the CTC sits at a crossroads—caught between the TCJA, stalled efforts for reform in 2024, and a political landscape with an uncertain appetite for extension.
The 2025 Status Quo
For tax year 2025, the CTC remains unchanged from its TCJA-enhanced version. That means parents can still claim $2,000 per qualifying child under age 17, enjoy partial refundability of up to $1,700 per qualifying child, with an income phaseout starting at $200,000 for single filers and $400,000 for joint filers.
That structure remains in place through 2025—but absent congressional action the CTC will shrink dramatically for tax year 2026.
The 2026 Change
Barring new legislation, the CTC will revert to pre-TCJA levels next year. That means the credit will drop to $1,000 per child and refundability will no longer be keyed to inflation. The latter change means the refundable portion of the credit’s real value will diminish over time.
Despite bipartisan interest in avoiding a sharp cut to the CTC in 2026, disagreements persist. Some Republican lawmakers oppose the expanded refundability, arguing it weakens work incentives. Others have hinted at support for a larger and more accessible credit.
Democrats, meanwhile, favor a return to the expanded 2021 model but have not found widespread support in the GOP. Even within the Republican party, there does not appear to be a consensus as to whether an expanded CTC should be part of broader tax reform, pursued independently, or left to expire.