Up to $2,200 in IRS Child Tax Credit: How eligible families can claim their refunds

Amid Trump’s economic turmoil, any financial help for ordinary working class Americans is literally life-saving, so it’s essential to know what you’re entitled to and how to apply.

The good news is that a new tax benefit aimed at helping families with children under 17 is now in effect. For the tax years beginning in 2025 and beyond, the federal federal-credit, known as the Child Tax Credit (CTC), has been raised to a maximum of $2,200 per qualifying child.

But keep in mind that only a portion of that, up to $1,700 per child, is refundable, meaning you can receive it even if you owe little or no federal income tax.

Here’s who qualifies for the IRS Child Tax Credit:

To claim this credit you must meet several tests:

• The child must be under 17 at the end of the year and claimed as your dependent.
• The child must be your son, daughter, step-child, eligible foster child, sibling or stepsibling (or their descendant).
• The child must have lived with you for more than half the year and must not have provided more than half their own support.
• Both you (and your spouse, if filing jointly) and the child must have valid Social Security numbers. (This is a recent tightening of the law)
• Your earned income must be at least $2,500.
• The full credit amount is phased out for higher-income households: for single filers, it begins to reduce above roughly $200,000 of modified adjusted gross income (MAGI); for married couples filing jointly, it begins to reduce above about $400,000.

How to claim IRS Child Tax Credit

You’ll claim the credit by filing the standard federal tax return form (Form 1040) and attaching Schedule 8812 (“Credits for Qualifying Children and Other Dependents”).

If you use either a tax-preparation software or a tax professional, they’ll guide you through the process of entering your relevant data and calculating the correct amount. Make sure to gather all relevant dependents’ details and to check your income level so you can see whether you’ll receive the full credit or a reduced amount.

While the headline number of $2,200 is higher than previous years, the actual refundable portion remains up to $1,700 per child. That means if you owe very little tax, you may receive a refund up to that amount, but you won’t get the full $2,200 unless your tax liability covers the non-refundable portion.

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