2025 Child Tax Credit (CTC) – What to Know

The Child Tax Credit (CTC) provides meaningful tax relief to families with dependent children. While potential legislative changes are still under discussion, as of now, the 2025 Child Tax Credit remains as follows under current law:

Key 2025 CTC Details:

• Credit Amount: Up to $2,000 per qualifying child

  • Refundable Portion: Up to $1,600 may be refundable as the Additional Child Tax Credit (ACTC) for lower-income households

• Qualifying Child: Must be under age 17 at the end of 2025, with a valid Social Security Number

• Income Phaseouts:

  • Credit begins to phase out at $200,000 for single filers

  • $400,000 for married couples filing jointly

Adoption Tax Credit can help families offset the high cost of adoption by providing a credit for qualified adoption expenses.

2025 Adoption Credit Highlights

• Maximum Credit: Up to $17,280 per eligible child (Increased from $16,810 in 2024)

• For adoptions of children with special needs, families may claim the full credit amount regardless of actual expenses incurred.

• The credit is nonrefundable, but any unused portion may be carried forward for up to five years.

Qualified Expenses Include:

• Adoption fees

• Court costs and legal fees

• Travel expenses related to the adoption

ECS Financial Services can guide you through the rules and help you claim the full benefits available for growing your family.