Child Tax Credit

Child Tax Credit

The Child Tax Credit (CTC) is defined as a federal tax credit that parents and guardians can receive for each child under the age of 17. To qualify for the CTC, income is restricted to $200k or less for single filers and $400k for joint filers.  

Jan. 1, 2025: Child Tax Credit (CTC) increases by $200 to $2,200.

Jan. 1, 2025: Additional Child Tax Credit (ACTC), the refundable portion of the Child Tax Credit, is made permanent.

  • Makes the refundable portion permanent, which is $1,700 for 2024 and 2025. If the CTC is greater than faxes owed, families may be refunded up to $1,700 per child. The ACTC will be indexed to inflation 

Jan. 1, 2026: CTC becomes indexed to inflation, allowing it to grow over the years.

Jan. 1, 2026: CTC expands for employers and individuals.

Source: The Niskanen Center, The Center for American Progress, Turbotax

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