10/20/2025
Child Tax Credit (CTC)
The CTC helps working families offset the cost of raising children.
• For tax year 2025 (filed in 2026):
◦ The credit is worth up to $2,200 per qualifying child.
◦ The maximum refundable portion (Additional Child Tax Credit) is $1,700 per qualifying child.
• Eligibility for 2025:
◦ Age: The qualifying child must be under age 17 at the end of the year.
◦ Citizenship: The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
◦ Social Security Number: The child must have a valid Social Security Number (SSN) for employment. Additionally, the new "One Big Beautiful Bill Act" requires the taxpayer claiming the credit (or at least one spouse if filing jointly) to have a valid SSN beginning in 2025.
◦ Residency: The child must have lived with the taxpayer for more than half the year.
◦ Income limits: The credit begins to phase out for modified adjusted gross incomes (MAGI) over $200,000 for single filers and $400,000 for married couples filing jointly.
• How to claim: Claim the CTC on Form 1040 and attach Schedule 8812.
Earned Income Tax Credit (EITC)
The EITC is a refundable credit that provides a financial boost for low-to-moderate-income workers, with or without children.
• For tax year 2025 (filed in 2026):
◦ The maximum credit is $8,046 for those with three or more children, but is significantly smaller for those with no qualifying children.
◦ The amount depends on your earned income, filing status, and number of qualifying children.
• Eligibility for 2025:
◦ Earned income: Your earned income and adjusted gross income (AGI) must be within certain limits. For example, for 2025, the income limit for a married couple with three or more children is $68,675.
◦ Investment income: Investment income must be $11,950 or less for 2025.
◦ Qualifying child: If you claim a qualifying child, they must meet age, relationship, residency, and other rules.
◦ No qualifying child: You can claim the EITC without a qualifying child if you meet all basic requirements and are between ages 25 and 64.
• How to claim: File Form 1040. If you are claiming a qualifying child, you must also attach Schedule EIC.
