New requirements for the child tax credit

The Child Tax Credit (CTC) has undergone changes for the 2025 tax year, primarily due to the passage of the One Big, Beautiful Bill Act. The maximum CTC amount has increased from $2,000 to $2,200 per qualifying child. The refundable portion, known as the Additional Child Tax Credit, remains at a maximum of $1,700 per qualifying child for 2025. This expanded CTC, which was previously set to expire after 2025, is now made permanent with no expiration date specified.

There is a new Social Security number requirement. Both the qualifying child and the taxpayer (parent or guardian) must now have a valid SSN to claim the CTC. This is a significant change, as previously only the child needed an SSN, while parents could use an Individual Tax Identification Number.

The CTC amount and its maximum refundable portion will be adjusted annually for inflation starting in 2026. One can qualify for the full CTC if your modified adjusted gross income is under $200,000 for single filers or $400,000 for married couples filing jointly. The credit amount is reduced by $50 for each $1,000 of income above these thresholds until it phases out completely.

Eligibility criteria for the CTC remain largely the same. The child must be under 17 at the end of the year, being claimed as a dependent, living with the taxpayer for more than half the year (with exceptions), not providing more than half of their own support, and being a U.S. citizen.

The Center for Migration Studies estimates that over 4.5 million children, the majority of them citizens, would no longer be eligible for the credit under the new tax law. The states of California, Texas and Florida will be severely impacted.

You can claim the Child Tax Credit on your annual tax return using Form 1040 and Schedule 8812. Many states also offer this credit

Barry Lisak is an IRS enrolled agent specializing in personal and small business taxes for 30 years. Any questions can be directed to him at 516-829-7283, or mrbarrytax@aol.com.