Child Tax Credit Changes under the OBBBA

The One Big Beautiful Bill Act (OBBBA) made important updates to the Child Tax Credit starting in 2025. If you’re a parent, here’s what you need to know.

What’s Changing

• Credit amount – The Child Tax Credit increases from $2,000 to $2,200 per qualifying child under age 17. Starting in 2026, that amount will be adjusted for inflation, so it should gradually increase over time.

• Eligibility rules – Parents or guardians must now have a valid Social Security Number to claim the credit. This is stricter than before, when some households with ITINs could qualify.

• Refundability and income limits – The rules for the refundable portion of the credit and the income phase-out ($200,000 single / $400,000 married filing jointly) remain in place. That means higher-income families may see the credit reduced, and lower-income families may not get the full benefit if they don’t have enough earned income.

What This Means for Families

For most households, this is a small but helpful increase—$200 more per child each year. But the new SSN requirement may disqualify some families, and the same income limits still apply.

Planning Tip

If you have children under 17, review your 2025 tax plan now. Families close to the income phase-out thresholds may want to look at income-timing strategies, and those with unusual filing situations should confirm eligibility before tax season.