Your child tax credit (CTC) likely went down because your child turned 17, your income exceeded phase-out thresholds, or the temporary, higher COVID-era credit amounts expired, reverting to lower, pre-pandemic levels. For the 2024-2025 tax years, the maximum credit is generally $2,000–$2,200 per child under age 17, with specific income and work requirements.
Calculate your Child Tax Credit
As we mentioned above, the CTC starts phasing out at $200,000 for single filers and $400,000 for married couples filing jointly. For every $1,000 you make above these limits, your CTC will be $50 less.
You might not get the full Child Tax Credit (CTC) due to income limits, your child's age, insufficient earned income, claiming errors (like wrong dependent info or another parent claiming the child), or because the temporary 2021 expansion rules aren't in effect, limiting the credit to your tax liability (part refundable as Additional Child Tax Credit (ACTC)), requiring at least $2,500 earned income for ACTC.
Taxpayers can claim a child tax credit (CTC) of up to $2,200 for each child under age 17 who is a U.S. citizen, national, or resident and has a Social Security number (SSN). The credit is reduced by 5 percent of adjusted gross income over $200,000 for single parents ($400,000 for married couples).
These updates aim to provide tax relief for families and parents. The Child Tax Credit 2025 rate slightly increased to $2,200 per child, and the new Child Tax Credit increase 2025 offers taxpayers $1,700 in related refundable credits.
Your child tax credit is likely $500 instead of $2,000 because they either turned 17 during the tax year, making them eligible for the Other Dependent Credit, or you might have mistakenly checked a box in your tax software, like saying their SSN isn't valid for employment or that they paid over half their own support, which triggers the lower credit amount, according to TurboTax support, TurboTax support, TurboTax support, and TurboTax support https://ttlc.intuit.index.php/community/taxes/discussion/my-daughter-is-17-but-is-still-jr-in-high-school-why-do-i-only-get-500-for-her-and-not-the-full-2000/00/3423950.
American Rescue Plan Act of 2021
The size of the benefit gradually diminished for single filers earning more than $75,000 per year, heads of households earning more than $112,500 per year, and married couples filing jointly making more than $150,000 a year.
Under this formula, a family is eligible for a refund equal to 15% of their earnings in excess of $2,500, up to $1,700 per child, the maximum amount of the refundable portion of the credit. The credit phases out for unmarried parents with income over $200,000 and married couples with income over $400,000.
To receive the credit for Child and Dependent Care Expenses, the expenses had to have been paid for care to be provided so that you (and your spouse, if filing jointly) could work or look for work. If both spouses do not show "earned income" (W-2's, business income, etc.), you generally cannot claim the credit.
Families must have at least one qualifying child under 6 years old at the end of the tax year, must file a California state tax return, and meet the requirements of the CalEITC. Taxpayers do not need to have earned income to be eligible however, you must otherwise meet CalEITC and YCTC requirements.
What's your net business income after expenses? The additional child tax credit is limited to 15% of your earned income over 2500, so you would only get a small amount of that, and none on the regular child tax credit.
If the amount of your credit is higher than the taxes you owe, you don't “get back” the rest of the credit as a refund, but you may be eligible for the Additional Child Tax Credit.
In Canada, a $2,000 tax credit often refers to the Pension Income Amount (Line 31400) for seniors receiving eligible pension/annuity income, creating a $300 federal credit (15% of $2,000), or a provincial Training Tax Credit for Apprentices, like British Columbia's $2,000 for completing specific training levels, while other benefits like the GST/HST Credit or Disability Benefit offer amounts varying based on income and family situation, not a fixed $2,000 for everyone.
Tax return changes
If we made any changes to your tax return, your refund amount may change. You'll receive a letter in the mail (Notice of Tax Return Change) with the details of the changes and the updated refund amount. Common changes include: Withholding or payments don't match our records.
You must have earned income of at least $2,500 to be eligible for the ACTC. You qualify for the full amount of the Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return).
The Additional Child Tax Credit allows you to receive up to $1,700 of the $2,200 CTC per child as a refund for 2025. To determine whether you're eligible to claim the Additional Child Tax Credit, fill out the Child Tax Credit Worksheet in the Form 1040 instructions.
The $3,600 Child Tax Credit was a temporary expansion for the 2021 tax year under the American Rescue Plan Act, offering up to $3,600 for young children and $3,000 for older kids, with half paid monthly in advance. This expansion, including full refundability and monthly payments, expired after 2021, reverting to the standard $2,000 credit (with limits) for subsequent years, though there have been recent bipartisan efforts for another temporary expansion.
The credit is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1700 per child. If the amount you earned was too low, you will not get the full $1700. If your child is older than 16 at the end of 2024, you do not get the CTC.
For the 2025 tax year, the federal Child Tax Credit (CTC) limit is up to $2,200 per qualifying child, with a partially refundable portion (Additional Child Tax Credit or ACTC) of up to $1,700 for lower-income families, calculated at 15% of earned income over $2,500. The credit phases out for incomes over $200,000 (single filers) or $400,000 (married couples), and you must have a child under 17 at year-end, claimed as a dependent, and with a valid Social Security Number.
The Child Tax Credit, the Earned Income Tax Credit and the Child and Dependent Care Credit have reverted to pre-COVID levels. This means that taxpayers will likely receive a significantly smaller refund compared to last year. For 2022, the Child Tax Credit is worth $2,000 for each qualifying child.
The $2,200 maximum child tax credit and additional tax credit decreases if the parent or guardian's gross income is more than $200,000 when filing individually, or more than $400,000 if filing a joint return with a spouse.
Child Tax Credit for 2026
Trump's 2025 tax megabill, often referred to as the 'big, beautiful bill' (BBB), raised the federal child tax credit from $2,000 to $2,200 per qualifying child. The IRS has kept the higher child tax credit amount for 2026.