What AGI triggers the Child Tax Credit phase-out?

The Child Tax Credit phase-out begins at $200,000 AGI for single filers and heads of household, and at $400,000 AGI for married filing jointly. The credit is reduced by $50 for each $1,000 of AGI above the threshold. Married filing separately filers are subject to a $200,000 threshold. These thresholds were established under the Tax Cuts and Jobs Act and retained by the OBBBA.

What is the Additional Child Tax Credit (ACTC)?

The Additional Child Tax Credit is the refundable portion of the Child Tax Credit. If your CTC exceeds your income tax liability, you may receive up to 15% of your earned income above $2,500 as a refundable credit, up to the amount of your unused CTC. This means the ACTC can result in a refund even if you owe no income tax. The ACTC is reported on Schedule 8812.

What is a qualifying child for the Child Tax Credit?

A qualifying child for the Child Tax Credit must meet all of the following: under age 17 at the end of the tax year; related to you (child, stepchild, foster child, sibling, or descendant of any of these); lived with you for more than half the year; did not provide more than half of their own support; is a U.S. citizen, national, or resident alien; and has a valid Social Security number. These requirements are under IRC §24 and §152.

Does the Child Tax Credit affect my refund?

Yes. The non-refundable portion of the CTC reduces your income tax liability directly. The refundable portion, called the Additional Child Tax Credit (ACTC), can result in a refund or increase an existing refund. Returns that include the ACTC are subject to the PATH Act, which requires the IRS to hold these refunds until after February 15. Most PATH Act refunds are issued within 2 to 3 weeks of February 15.

Does the OBBBA CTC affect all four filing years the same way?

The $2,200 per child credit amount applies for tax years 2025, 2026, 2027, and 2028. The credit is scheduled to revert to $1,000 per child after December 31, 2028, absent further legislation extending or making permanent the OBBBA provisions. Phase-out thresholds and refundability rules apply equally across all four years.

How does the OBBBA CTC compare to the pre-OBBBA TCJA amount?

Under the TCJA (effective 2018 through 2024), the maximum Child Tax Credit was $2,000 per qualifying child. The refundable ACTC was capped at $1,700 per child for tax year 2024. Under the OBBBA (effective TY 2025 through 2028), the credit increased to $2,200 per qualifying child. The OBBBA increase is $200 per child over the TCJA baseline.

Can I claim the Child Tax Credit and the Trump Account for the same child?

The Child Tax Credit and a Trump Account are independent provisions. Claiming the CTC does not affect a child's Trump Account, and contributing to a Trump Account does not reduce or affect the CTC. The CTC reduces your current-year income tax liability. The Trump Account is a long-term savings vehicle with no current-year tax deduction for contributions. A parent may claim both for the same qualifying child.

What is Schedule 8812?

Schedule 8812 (Credits for Qualifying Children and Other Dependents) is the IRS form used to calculate the Child Tax Credit, Additional Child Tax Credit, and Credit for Other Dependents. It is filed with Form 1040. The schedule calculates the phase-out, the non-refundable CTC amount applied against your income tax, and the refundable ACTC amount if applicable.

Does the Child Tax Credit apply to children born in 2025?

Yes. A child born on any day of 2025 is under age 17 at the end of the 2025 tax year, so they meet the age requirement. They must also meet all other qualifying child tests: relationship, residency, support, citizenship, and Social Security number. Children born in 2025 may also be eligible for a Trump Account with the $1,000 federal seed, which is a separate provision from the CTC.

Child Tax Credit Calculator (2025)

Quick Facts: Child Tax Credit (Tax Year 2025)

Quick Facts — Tax Year 2025 (OBBBA)
Item	Value	Status
Maximum CTC per qualifying child	$2,200	Confirmed
Pre-OBBBA TCJA amount (TY 2024)	$2,000	Confirmed
Phase-out threshold: single / HOH / MFS	$200,000 AGI	Confirmed
Phase-out threshold: married filing jointly	$400,000 AGI	Confirmed
Phase-out rate	$50 per $1,000 over threshold	Confirmed
ACTC refundable rate	15% of earned income above $2,500	Confirmed
Maximum ACTC per child	$1,700 per child (or lesser of unused CTC / ACTC formula)	Confirmed
Qualifying child age	Under 17 at end of tax year	Confirmed
SSN required for child	Yes, valid SSN required	Confirmed
OBBBA sunset	December 31, 2028 (TY 2025–2028)	Confirmed
PATH Act hold (ACTC filers)	IRS holds refund until after Feb 15	Confirmed
Governing form	Schedule 8812 (Form 1040)	Confirmed
IRC section	IRC §24	Confirmed
State conformity	Varies by state — no federal mandate	Provisional

How This Is Calculated

This calculator applies the Child Tax Credit rules under IRC §24 as amended by the One Big Beautiful Bill Act (Pub. L. 119-21). The calculation follows four sequential steps. For the full statutory context and eligibility requirements, see our Child Tax Credit OBBBA Guide.

Step 1: Gross CTC Confirmed

Gross CTC = $2,200 × number of qualifying children. The $2,200 per child amount is confirmed per OBBBA for tax years 2025 through 2028.

Step 2: Phase-Out Reduction Confirmed

Phase-out begins at $200,000 AGI for single, HOH, and MFS filers, and at $400,000 AGI for MFJ filers. The credit is reduced by $50 for each $1,000 (or fraction thereof) of AGI above the applicable threshold. The credit cannot be reduced below zero.

Formula: Reduction = CEILING((AGI − Threshold) ÷ 1,000) × $50 | Net CTC = MAX(0, Gross CTC − Reduction)

Step 3: Non-Refundable CTC Against Tax Liability Confirmed

The non-refundable portion of the CTC is applied against your federal income tax liability before other credits. It cannot reduce your tax below zero. Non-refundable CTC = MIN(Net CTC, Tax Liability Before Credits).

Step 4: Additional Child Tax Credit (ACTC, Refundable) Confirmed

If your Net CTC exceeds your income tax liability, the remaining unused credit may be refundable as the ACTC. The ACTC equals 15% of your earned income above $2,500, capped at the lesser of the remaining unused CTC and $1,700 per child.

Formula: ACTC = MIN(Net CTC − Non-Refundable CTC, MAX(0, (Earned Income − $2,500) × 15%), $1,700 × children)

Families with 3 or more qualifying children: You may qualify for a higher ACTC using the FICA method. Compare: (Social Security taxes withheld + ½ of any SECA tax) versus (15% of earned income above $2,500). You receive the greater of the two amounts, up to the unused CTC. This calculator uses the standard earned-income method only. If you have 3 or more children, file Schedule 8812 and let the IRS calculate both methods. Confirmed

Simplified Calculation Notice: This calculator uses the standard ACTC formula (15% of earned income above $2,500). Taxpayers with three or more qualifying children may qualify for a higher ACTC using an alternative calculation that factors in Social Security and Medicare taxes paid relative to the Earned Income Credit. This alternative method is not included here. Use Schedule 8812 or qualified tax software for the most accurate result if you have three or more children.

Assumptions

CTC amount of $2,200 per child applies to tax year 2025 (confirmed per OBBBA, IRC §24).
Phase-out thresholds of $200,000 / $400,000 are applied as enacted in OBBBA (confirmed, retaining TCJA structure).
ACTC formula uses 15% of earned income above $2,500 (confirmed standard method — see note above for 3+ child alternative).
The user-entered "tax before credits" figure is taken at face value. This calculator does not compute income tax from scratch.
State CTC conformity is not reflected. Several states have their own child tax credits that operate independently.

Confirmed vs. Pending Guidance

The $2,200 CTC amount and phase-out thresholds are set in statute. A few implementation details are still pending IRS guidance.

Confirmed by Statute

Credit amount$2,200 per qualifying child, TY 2025–2028 Confirmed

Phase-out threshold$200,000 AGI single/HOH · $400,000 AGI MFJ Confirmed

Phase-out rate$50 reduction per $1,000 AGI above threshold Confirmed

ACTC formula15% of earned income above $2,500, up to unused CTC Confirmed

PATH Act delayACTC refunds held until after February 15 Confirmed

Schedule 8812Required to claim CTC and ACTC Confirmed

SunsetReverts to $1,000 per child after TY 2028 absent new legislation Confirmed

Pending: IRS has not issued final guidance on the maximum ACTC per child for TY 2025. The ACTC formula (15% of earned income above $2,500) is confirmed. The effective per-child ceiling depends on total CTC amount and individual tax liability. Use this calculator as an estimate. Provisional

Who Benefits Most

Likely Gets Meaningful Benefit

Middle-income families with 2–4 qualifying childrenAGI well below phase-out thresholds. Full $2,200 per child. ACTC refundable if tax liability is low.

Low-income families with earned income above $2,500ACTC refundable portion can produce a refund even with zero income tax owed.

Families with a child born in 2025Eligible for CTC in the first tax year. May also open a Trump Account with the $1,000 federal seed — both benefits are independent.

Gets Little or No Benefit

Families with AGI above $400,000 MFJ (phase-out)Credit is fully phased out before this income level in many cases. No credit remains at high AGI.

Families with no earned incomeACTC requires earned income above $2,500. The non-refundable CTC still applies if there is income tax liability.

Families where all children are age 17 or olderAge-17 cutoff means older children no longer qualify. A $500 Other Dependent Credit may still apply.

Practitioner Insight (LMN Tax Inc.)

LMN Tax Inc. — Client Pattern

At LMN Tax Inc, we frequently see clients underestimate their ACTC because they assume the Child Tax Credit only reduces the tax bill. For lower-income parents with two or more children, the refundable ACTC is often the largest single item on the return. The $2,200 per child amount under the OBBBA increases that refundable potential by $200 per child over prior law. Separately, parents of children born in 2025 should also check whether those children qualify for a Trump Account with the $1,000 federal seed. The CTC and the Trump Account are independent benefits that apply to the same child.

When This Estimate May Not Apply

Three or more qualifying children: An alternative ACTC method based on Social Security taxes paid may yield a higher refundable amount than the 15% earned income formula. This calculator only uses the standard method.
Married filing separately: MFS filers generally cannot claim the ACTC. The non-refundable CTC may still apply against tax liability but the refundable portion is disallowed in most MFS situations.
Children who turn 17 in the tax year: A child who turns 17 during 2025 does not qualify for the CTC for tax year 2025. The age cutoff is under 17 at December 31, 2025.
No valid Social Security number: A child without a valid SSN (issued before the return due date) does not qualify for the CTC or ACTC, even if they otherwise meet all other tests.
High AGI phase-outs: The phase-out eliminates the credit entirely for single filers with AGI above approximately $288,000 and MFJ filers with AGI above approximately $488,000 (assuming 2 children at $2,200 each = $4,400 credit, divided by $50 = 88 increments × $1,000 = $88,000 above threshold).
State conformity: Many states do not conform to the OBBBA CTC increase. Your state child tax credit (if any) may differ from the federal amount. Check your state revenue department for current rules.
Dependents who don't qualify for CTC: a dependent age 17 or older, or a qualifying relative who is not a qualifying child, may be eligible for the Credit for Other Dependents (ODC): a $500 nonrefundable credit. ODC is not included in this calculator. Claim it on Schedule 8812 alongside the CTC.

Frequently Asked Questions

What is the Child Tax Credit for 2025 under the OBBBA?

The Child Tax Credit is $2,200 per qualifying child for tax year 2025 under the One Big Beautiful Bill Act. This is an increase from the prior $2,000 limit under the TCJA. The $2,200 amount applies for tax years 2025 through 2028 and is scheduled to revert to $1,000 after December 31, 2028 absent further legislation.

What triggers the Child Tax Credit phase-out?

The phase-out begins at $200,000 AGI for single, head of household, and married filing separately filers. For married filing jointly, it begins at $400,000 AGI. The credit is reduced by $50 for each $1,000 of AGI above the applicable threshold. These thresholds were part of the TCJA and retained by the OBBBA.

What is the Additional Child Tax Credit and how is it calculated?

The Additional Child Tax Credit is the refundable portion of the CTC. If your net CTC exceeds your income tax liability, you may receive up to 15% of earned income above $2,500 as a cash refund, capped at the unused credit amount. For example: if you have $3,000 of unused CTC and $40,000 of earned income, your ACTC would be the lesser of $3,000 or 15% of ($40,000 minus $2,500), which equals $5,625. You receive $3,000. Taxpayers with three or more children may use an alternative calculation yielding a higher amount.

Does the PATH Act affect Child Tax Credit refunds?

Yes. Returns that include the Additional Child Tax Credit are subject to the PATH Act (Protecting Americans from Tax Hikes Act), which requires the IRS to hold these refunds until after February 15 each year. This applies regardless of when you file. Most PATH Act refunds are issued within 2 to 3 weeks of February 15, assuming no other issues with the return.

Can I claim the CTC and also open a Trump Account for the same child?

Yes. The Child Tax Credit and a Trump Account (Money Account for Growth and Advancement) are separate OBBBA provisions. Claiming the CTC does not affect a child's Trump Account eligibility or the $1,000 federal seed. Contributing to a Trump Account does not reduce your CTC. The Trump Account is a long-term savings vehicle with after-tax contributions and no current-year deduction. The CTC is a current-year credit against income tax. Both can apply to the same qualifying child.

What form do I use to claim the Child Tax Credit?

The Child Tax Credit and Additional Child Tax Credit are calculated on Schedule 8812 (Credits for Qualifying Children and Other Dependents) and filed with Form 1040. The non-refundable CTC appears on Form 1040 line 19. The refundable ACTC appears on Schedule 8812 Part II and flows to Form 1040 line 28.

Does the OBBBA CTC apply for tax years before 2025?

No. The OBBBA CTC increase to $2,200 per child applies only to tax years 2025 through 2028. For tax year 2024 (filed in 2025), the prior law applied: the maximum CTC was $2,000 per qualifying child with an ACTC cap of $1,700. The OBBBA was signed July 4, 2025 and is effective beginning with the 2025 tax year.

Is the Child Tax Credit the same as the Credit for Other Dependents?

No. The Child Tax Credit (up to $2,200 per qualifying child) applies to children under 17 with a valid SSN. The Credit for Other Dependents is a separate, non-refundable credit of up to $500 for dependents who do not qualify for the CTC, such as older children (age 17 or over), other relatives, or dependents without a valid SSN. Both are calculated on Schedule 8812.

What happens to the Child Tax Credit after 2028?

The OBBBA CTC provisions sunset after December 31, 2028. Without further legislation, the maximum CTC would revert to $1,000 per qualifying child (pre-TCJA baseline). The TCJA had temporarily increased it to $2,000 through 2025; the OBBBA increased it further to $2,200 through 2028. Taxpayers should monitor Congressional action as the 2028 deadline approaches.

Child Tax Credit Calculator (2025)

Quick Facts: Child Tax Credit (Tax Year 2025)

How This Is Calculated

Step 1: Gross CTC Confirmed

Step 2: Phase-Out Reduction Confirmed

Step 3: Non-Refundable CTC Against Tax Liability Confirmed

Step 4: Additional Child Tax Credit (ACTC, Refundable) Confirmed

Assumptions

Confirmed vs. Pending Guidance

Who Benefits Most

Real-World Example

Practitioner Insight (LMN Tax Inc.)

When This Estimate May Not Apply

Frequently Asked Questions

What To Do Next

Related Tools and Guides

Child Tax Credit Calculator (2025)

Quick Facts: Child Tax Credit (Tax Year 2025)

How This Is Calculated

Step 1: Gross CTC Confirmed

Step 2: Phase-Out Reduction Confirmed

Step 3: Non-Refundable CTC Against Tax Liability Confirmed

Step 4: Additional Child Tax Credit (ACTC, Refundable) Confirmed

Assumptions

Confirmed vs. Pending Guidance

Who Benefits Most

Real-World Example

Practitioner Insight (LMN Tax Inc.)

When This Estimate May Not Apply

Frequently Asked Questions

What To Do Next

Related Tools and Guides

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