- EITC: No changes under OBBBA.
- CTC: Increases to $2,200 per qualifying child in 2025, indexed for inflation. Phaseouts remain $200,000 (single) and $400,000 (joint).
A qualifying child for the Child Tax Credit must meet all of the following IRS requirements:
- Relationship: Must be your son, daughter, stepchild, eligible foster child, brother, sister (including half- or step-sibling), or a descendant such as a grandchild, niece, or nephew.
- Age: Must be under age 17 at the end of the tax year.
- Residency: Must have lived with you for more than half of the year (temporary absences for school, illness, or military service are allowed).
- Support: Must not have provided more than half of their own support during the year.
- Dependency: Must be claimed as your dependent on your tax return.
- Identification: Must have a valid Social Security Number (SSN) issued by the tax return due date (including extensions).
- Joint Return: Cannot file a joint return with a spouse unless it is solely to claim a refund of withheld or estimated taxes.
- Citizenship/Residency: Must be a U.S. citizen, U.S. national, or U.S. resident alien.
Examples
Qualifying Child Example:
Maria is a single parent with one child, Jacob, who is 10 years old. Jacob lived with Maria for the entire year, does not provide more than half of his own support, and Maria claims him as a dependent. Jacob has a valid Social Security Number and is a U.S. citizen.
Result: Jacob qualifies as a “qualifying child” for the Child Tax Credit, so Maria can claim the credit of $2,200 for him on her 2025 tax return.
Non-Qualifying Child Example:
David has a daughter, Emily, who is 19 years old and a full-time college student. Emily lived with David for most of the year and has a valid SSN, but because she is over age 17 at the end of the tax year, she does not meet the age requirement for the Child Tax Credit.
Result: Emily does not qualify for the Child Tax Credit, even though she may qualify as a dependent for other purposes.