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Changes to the child tax credit and earned income tax credit: what families need to know
The Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) can put real money back in your pockets at tax time. However, recent rule changes mean it’s important to review eligibility carefully before filing for the 2025 tax year.
What’s Changing and — And Why It Matters
For 2025, the Child Tax Credit is changing under President Donald Trump’s tax and spending law, often referred to as the One Big Beautiful Bill, enacted on July 4, 2025. The law expands benefits for some households while tightening eligibility rules for others, making it important for families to double-check qualifications.
Bigger Child Tax Credit for 2025
The maximum CTC increases from $2,000 to $2,200 per child for the 2025 tax year. In addition, the credit is now indexed to inflation, meaning it can increase over time as costs rise. For eligible families, this could result in a slightly larger refund or reduced tax bill.
New Social Security Number Requirements
Eligibility rules for the CTC are now stricter. To claim the credit, the child, parent (and their spouse, if filing jointly), must all have valid SSNs. This change may affect some immigrant and mixed-status families who qualified in prior years, meaning families who previously received the credit could lose eligibility in 2025. Individuals can always review current CTC guidelines for eligibilityeligiblity guidance.
What About the Earned Income Tax Credit (EITC)?
The EITC remains an important credit for low- and moderate-income workers. Eligibility is still based on earned income, filing status, and number of children. Families who no longer qualify for the Child Tax Credit may still be eligible for the EITC, making it critical to review both credits when filing.
What Families Should Do Now
Before filing, families should review their eligibility, confirm their Social Security information is accurate, and file a return even if their income is low. Free, trusted tax help is available for those who need assistance navigating these changes.
