President Donald Trump signed his “big beautiful” spending bill into law on July 4.
One provision is an increase to the maximum child tax credit, raising it from $2,000 per eligible child to $2,200 beginning in 2026. The 2017 Tax Cuts and Jobs Act temporarily increased the credit from $1,000 to $2,000, but was set to expire after 2025 without action from Congress.
The child tax credit is a partially refundable tax credit available to taxpayers with children or dependents under age 17 who meet certain eligibility requirements, including having a Social Security number and living with the taxpayer for at least half of the year. Trump’s legislation also requires at least one taxpayer claiming the credit to have a Social Security number.
Parents and guardians must earn $200,000 a year or less, or $400,000 for joint filers, to claim the full credit for each dependent. The credit is decreased by 5% for every $1,000 earned over those thresholds.
The refundable portion of the credit — known as the additional child tax credit — is worth up to $1,700 in 2025. Starting in 2026, the credit will be indexed for inflation.
