Tax Tip #269

Beginning with tax year 2025 filing, the Child Tax Credit (CTC) increases to $2,200 per qualifying child under age 17 (up from $2,000). It will be adjusted annually for inflation starting in 2026. The refundable portion is $1,700 for 2025 and will also adjust for inflation moving forward. 

The modified adjusted gross income (MAGI) thresholds for the phaseout of the CTC remain unchanged and permanent at:

• $200,000 for single and head of household
• $400,000 for married filing jointly 

Beginning in 2025, you must include valid Social Security numbers (SSNs) for both the child and the taxpayer claiming the credit. For joint filers, at least one spouse must have an SSN to qualify. Qualifying children age 17 and over still qualify for a $500 tax credit. A child born in 2025 will receive a $1,000 government deposit into the new Trump account (see Tax Tip #257 for more info). 

Are you a parent who wants to know more about the potential child-related tax benefits available? Reach out to a team member for assistance.