If you have two kids and you filed a 2025 return this spring, you should have $400 more in your refund (or $400 less in your balance due) than the year before. Three kids, $600. The bump is automatic if you and the kids have valid Social Security numbers. If anyone in the household relies on an ITIN, the rules just got harder.
Most filers do not need to do anything different to claim it. What you do need to do is check the math, because plenty of last-spring filings still show the old $2,000 number.
What changed
The One Big Beautiful Bill, signed last summer, lifted the Child Tax Credit (CTC) from $2,000 to $2,200 per qualifying child under 17, starting with the 2025 return you’ll file this spring. It also raised the cap on the refundable Additional Child Tax Credit (the piece you get back even if you owe no tax) from $1,400 to $1,700. From tax year 2026 on, both numbers adjust for inflation, per the IRS.
The income phase-out is unchanged at $200,000 single or head of household and $400,000 married filing jointly. Above those thresholds the credit drops $50 per $1,000 of extra income.
Here’s the catch. OBBB added a rule that the taxpayer claiming the credit, not just the kid, must have a valid SSN. For joint returns, one spouse’s SSN is enough. Before, a parent could file with an ITIN as long as the child had an SSN. The Bipartisan Policy Center estimates about 500,000 children “could lose access to the credit” under the new rule.
The refundable portion you have to earn into. It’s 15% of earnings above $2,500, capped at $1,700 per child. So a household with two kids and $20,000 of earned income gets back roughly $2,625 from the refundable side, not $3,400. Low earners see a smaller bump because they were never claiming the full credit.
What it means for your refund
For a typical filer with kids and earned income above about $30,000, the bump is straightforward. Multiply $200 by the number of qualifying kids you claim. That’s the change in your tax: a smaller balance due or a bigger refund by the same amount. Bipartisan Policy Center pegs the strongest gains at household income $27,000 to $243,000.
For a household pulling $0 to $26,000 in earned income, the refundable cap matters only when the credit you’ve earned exceeds $1,700 per child, which most low-income filers never hit. The Bipartisan Policy Center finds those families “receive no increase” on average.
For a mixed-status family that’s been filing the credit with a parent on an ITIN, the whole credit is gone.
What to do this week
If you already filed your 2025 return, pull a copy and check the CTC line. It should show $2,200 per qualifying child. If it shows $2,000, you can file an amended return (Form 1040-X) and claim the extra. The IRS gives you three years to do it. On two kids, that’s $400 you walked away from.
If you filed an extension and have until October 15, use the time. Make sure the return shows $2,200 per kid. If you use a preparer, ask plainly: “Did the higher CTC apply to my return?” The $200 per kid is owed to you, not optional.
If you have a kid without an SSN, request one before you file. The credit requires the SSN to be issued by the return due date (including extensions). Mixed-status families with one ITIN-only parent should plan to skip the credit on this return.
Use our budget planner to give the refund a job: a high-yield savings account, debt paydown, or a 529. Refund money disappears fastest when it lands in checking with no plan.
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