2024–2025 Child Tax Credit: CTC $2,200 and New SSN Rule

Families across the United States 🇺🇸 will see a higher Child Tax Credit on their 2025 tax returns, but a new identification rule for parents and a steady cap on refunds will shape how much money actually reaches low- and middle-income households.

For the 2024 tax year (returns filed in 2025), the Child Tax Credit (CTC) is $2,000 per qualifying child under age 17. Starting with the 2025 tax year, the CTC rises to $2,200 per child, and the amount will be indexed for inflation going forward. The Additional Child Tax Credit (ACTC)—the refundable portion of the credit—remains capped at $1,700 per child for both 2024 and 2025.

A new rule kicking in for 2025 requires that at least one parent—or the taxpayer on a single return—have a work-eligible Social Security number (SSN). This change matters most for immigrant and mixed-status households who meet the child tests but may lack a work-eligible SSN themselves.

Key changes and how refundability works

• Base credit increase
  • 2024: $2,000 per qualifying child under 17.
  • 2025 and later: $2,200 per child, with annual inflation indexing.
• Refundable portion (ACTC)
  • Refundable amount is still 15% of earned income over $2,500.
  • The ACTC is capped at $1,700 per child for 2024 and 2025.
  • Because the base credit rises but the refundable cap does not, many lower-income families may not see higher cash refunds unless Congress changes the cap.
• New 2025 taxpayer identification rule
  • At least one parent/taxpayer on the return must have a work-eligible SSN to claim the CTC.
  • Each qualifying child must have a valid SSN by the filing deadline (this requirement already existed for children).
• Income phaseouts (unchanged for 2025)
  • $200,000 MAGI for single filers, heads of household, and qualifying surviving spouses.
  • $400,000 MAGI for married filing jointly.
  • Credit reduced by $50 for every $1,000 (or fraction of $1,000) above the threshold.
• Other dependents
  • A separate $500 nonrefundable Credit for Other Dependents (ODC) remains available for dependents who are not qualifying children.

Eligibility tests — what hasn’t changed

The CTC and ACTC rest on seven strict eligibility tests for each “qualifying child.” Each child must have a valid SSN issued by the filing deadline. The seven tests are:

1. Relationship — the child is your son, daughter, stepchild, eligible foster child, sibling, step-sibling, or a descendant of any of them (includes adopted children and certain relatives).
2. Age — under 17 at year-end.
3. Support — the child did not provide more than half of their own support.
4. Residency — child lived with the taxpayer more than half the year (with limited exceptions).
5. Dependent status — the child is claimed as a dependent on the return.
6. Joint return test — child did not file a joint return (unless only to claim a refund).
7. Citizenship/residency — child is a U.S. citizen, U.S. national, or U.S. resident.

These tests were not changed for 2025; the major change is the parent/taxpayer SSN rule described above.

How refundability is calculated

• Refund is based on 15% of earned income above $2,500, subject to the $1,700 per-child cap.
• If a taxpayer’s total CTC exceeds their tax liability, Schedule 8812 determines the ACTC refundable portion up to the cap.
• Because the base CTC rises to $2,200 but the refundable cap remains $1,700, families with little or no tax liability may not receive a larger refund under the 2025 rules.

Practical examples

Consider May and Bob, filing jointly, with two qualifying children:

• 2024 tax year
  • CTC = $2,000 × 2 = $4,000 total.
  • If their tax bill is $554, they use $554 to reduce tax to zero.
  • Remaining potential ACTC is capped at $1,700 × 2 = $3,400.
• 2025 tax year
  • Base CTC = $2,200 × 2 = $4,400.
  • ACTC cap remains $3,400; they may not see the full benefit of the higher base credit as a refundable amount unless their tax liability warrants it.

Impact on immigrant and mixed-status families

• The new 2025 SSN requirement for a parent is the key change for immigrant households.
• If neither parent has a work-eligible SSN, the family cannot claim the CTC, even if each child has a valid SSN and meets all child tests.
• If one spouse has an SSN and the other uses an ITIN, the family can still claim the credit, because only one SSN is required on the return.
• Timing matters: each qualifying child must have a valid SSN by the filing deadline, including extensions. If a child’s SSN is pending or issued after the due date, the family cannot claim the CTC for that child for that year.

Timing, age thresholds, and documentation

• The age test (under 17 at year-end) matters for children turning 17—those children might instead qualify for the $500 Credit for Other Dependents, which is nonrefundable.
• Keep records proving residency and support—school records, medical records, and other documentation—especially when parents live apart.
• Households close to the phaseout thresholds should plan carefully:
  • For example, a married couple with MAGI of $410,500 is $10,500 over the $400,000 threshold, and the CTC is reduced by $550 (because reductions are $50 per $1,000 or fraction thereof).

How to claim the credit

• Use Form 1040 and attach Schedule 8812 (Credits for Qualifying Children and Other Dependents) to compute the CTC, ACTC, and any phaseout.
• Schedule 8812 walks taxpayers through:
  1. The total CTC calculation.
  2. The nonrefundable portion applied against tax owed.
  3. The ACTC refundable computation based on the 15% formula, up to the $1,700-per-child limit.
• Official IRS resources:
  • IRS Child Tax Credit page
  • About Form 1040
  • About Schedule 8812 (Form 1040)

Planning takeaways and warnings

• Important deadlines and documentation:
  • Ensure each child has a valid SSN by the filing deadline, including extensions.
  • For immigrant and mixed-status families, confirm at least one parent with a work-eligible SSN is on the return for 2025 eligibility.
• Refund expectations:
  • The higher $2,200 base credit benefits families that owe taxes first; lower-income families may remain constrained by the $1,700 refundable cap.
• Keep records proving residency and support if custody or living situations are complex.
• Because indexing begins in 2025, expect modest annual increases to the per-child amount after 2025 unless Congress acts otherwise.

Key takeaway: The per-child credit rises to $2,200 in 2025 and will be indexed for inflation, but the refundability limit stays at $1,700 per child and a new rule requires at least one parent on the return to have a work-eligible SSN. These combined changes most affect low-income and immigrant/mixed-status families.

For accurate calculations, use Schedule 8812 with Form 1040 or reliable tax software, and review SSN and income rules before filing to ensure families claim the Child Tax Credit and Additional Child Tax Credit correctly under the 2025 rules.