Conditions for the 2025 child tax credit and the conditions for the earned income tax credit

The refundable portion of the child tax credit – a tax break that parents can claim for eligible children – is $1,700 for 2025, unchanged from 2024.

The maximum child tax credit of $2,000 per child under age 17 is available to parents with a modified adjusted gross income of up to $400,000 if married filing jointly, or under $200,000 if single are. These numbers are also unchanged from 2024.

Specifically, the terms of the current child tax credit expire at the end of the 2025 tax year. At that point, the child tax credit is scheduled to drop to a maximum of $1,000 per child.

However, lawmakers on both sides have made proposals to make the loans more generous.

According to Alex Durante, an economist at the Tax Foundation, the new changes for 2025 are standard adjustments for inflation so taxpayers don't face higher tax liabilities. The terms continue to reflect the Tax Cuts and Jobs Act of 2017.

“But the following year, 2026, families should expect higher tax liabilities unless Congress decides to extend these tax provisions implemented in 2017,” Durante said.

A tax credit for low- to moderate-income individuals and families – the Earned Income Tax Credit (EITC) – will have higher maximum amounts in 2025.

The Earned Income Tax Credit helps qualified individuals and families reduce the amount of taxes they owe and may also allow for a refund, according to the IRS.

In 2025, the maximum EITC amount is $8,046 for eligible taxpayers with three or more eligible children. That's an increase of $7,830 for the 2024 tax year.

The maximum amount available to eligible taxpayers with two eligible children is $7,152, up from $6,960 in 2024; a qualifying child: $4,328, compared to $4,213 in 2024; and no eligible children, $649, up from $632 this year.

To qualify for the tax credit, individuals and families must fall below certain adjusted gross income thresholds – defined as total income excluding eligible deductions.

In 2025, the maximum AGI for EITC eligibility for married couples with three or more children will be $68,675, up from $66,819 in 2024; and for single filers, heads of households and widowed filers with three or more children, the amount is $61,555, adjusted from $59,899 this year. Exit thresholds also apply to the EITC.

Taxpayers are also limited on how much capital income they can have to qualify for the earned income tax credit. In 2025, this threshold will increase to $11,950, up from $11,600 in 2024. If capital gains are above $11,950 in 2025, taxpayers will not be eligible for the credit.

Other changes announced by the IRS may also impact families.

The maximum adoption credit for a child, including those with special needs, applies to qualified expenses of up to $17,280 in 2025, up from $16,810 in 2024.

The annual gift exclusion will increase from $18,000 to $19,000 in 2024. If taxpayers give $19,000 to each of their children in 2025, the annual exclusion applies to each gift.