A permanent expansion to the Child Tax Credit is now in place following recent legislative changes, bringing the maximum benefit per child to $2,200 for the 2025 tax year. The update, passed during the summer under the One Big Beautiful Bill Act, was part of a broader spending package signed by President Donald Trump.
Families planning ahead for tax season in 2026 will find several familiar elements in the updated framework, but also some key differences. Adjustments to income thresholds, refund limits and ID requirements may influence how much households receive and how quickly they get it.
$2,200 Cap to Apply for 2025 Returns Filed in 2026
The credit, first expanded in 2018 by the Tax Cuts and Jobs Act (TCJA), had doubled from $1,000 to $2,000 per child. That increase was initially temporary and due to expire in 2025. Instead, the One Big Beautiful Bill Act, passed in July, made the expanded level permanent and introduced a further increase of $200, raising the total to $2,200 per eligible child starting in tax year 2025. This amount will apply when parents file in April 2026.
According to the Internal Revenue Service (IRS), the $2,200 cap will remain fixed for that filing season and will be indexed to inflation from the 2027 tax year onward. While the full amount is not refundable, a significant portion, $1,700, can be refunded to taxpayers even if their tax bill is smaller than their credit. That refundable portion will remain unchanged from 2025, according to the IRS.
Identification requirements, introduced under the TCJA, are now permanent as well. A valid Social Security number is required both for each child being claimed and at least one parent in cases where a couple files jointly. These measures, originally part of anti-fraud efforts, are now part of the standard framework for eligibility.
Eligibility Rules Remain Strict and Refund Timelines May Vary
To qualify for the Child Tax Credit, a child must meet the dependent test, which includes several conditions. According to IRS criteria, the child must generally be the taxpayer’s son, daughter, sibling, niece, nephew, or grandchild. They must also be under the age of 19, or under 24 if they are enrolled full-time in school for at least five months during the year. Children who are permanently disabled can qualify at any age. Additionally, the child must have lived with the taxpayer for more than half of the year and must not have provided more than half of their own financial support.
According to the Tax Policy Center, nearly 90 percent of households with children received the Child Tax Credit in 2025, with an average payout of $2,520, higher than the per-child maximum because many families claim the credit for multiple dependents.
When it comes to refunds, timing can vary. The IRS typically issues refunds within 21 days for taxpayers who file electronically and choose direct deposit. But families claiming the Child Tax Credit or Additional Child Tax Credit may experience delays due to additional fraud-prevention measures. According to IRS officials, these delays are often necessary to ensure the accuracy of claims involving large credits. The deadline to file federal tax returns for the 2025 tax year is April 15, 2026. Families are encouraged to review their eligibility early and prepare the required identification documents to avoid unexpected delays in processing or payment.
