Child Tax Credit Update

Law changes permanently increase the child tax credit to $2,200 (beginning in 2025) for qualifying children under 17. This amount is adjusted for inflation after 2025. The Act also permanently retains the current, higher income phase-out thresholds ($200,000 for singles and $400,000 for MFJ). Additionally, the Act makes permanent the $1,400 refundable portion of the credit, indexed for inflation (currently $1,700), and the $2,500 earned income requirement to receive a refundable credit.