The child tax credit for 2025 is $2,200, up from $2,000 in 2024, and adjusts for inflation annually. Income limits remain at $400,000 for married filers and $200,000 for others. The new tax law requires both child and parent to have Social Security numbers. The credit aims to help families.

Qualifying taxpayers can reduce their tax bill by up to $2,200 per child under 17 for the 2025 tax year, with a possible $1,700 refund. Don’t confuse the child tax credit with child care or earned income credits. A $500 credit is available for other dependents. Tax credits reduce your tax bill dollar-for-dollar.

To qualify, each child must be under 17, a U.S. citizen, and have a valid Social Security number. Taxpayers must also have a Social Security number and claim the child as a dependent. The child must not have provided more than half of their financial support and must have lived with you for more than half of the year.

Eligible taxpayers can claim the full $2,200 credit for each child under 17, with a phase-out for higher incomes. Refundable credits are available for those who break even on taxes. Consult a tax preparer or use tax software to determine eligibility and calculate credits.

In addition to the federal child tax credit, 17 states and D.C. offer their own credits, with 12 making theirs refundable. Benefits and eligibility vary by state, so check with your state tax website for details. Some states offering a child tax credit include Arizona, California, Colorado, and Georgia.

Read more at Yahoo Finance: Who’s eligible, how to claim it and more