What is the Child Tax Credit?
The Child Tax Credit (CTC) is one of the most valuable tax benefits available to families with children. For Tax Year 2025, it's worth up to $2,000 per qualifying child under 17 — and up to $1,700 of that is refundable, meaning you can receive it as a cash refund even if you owe no federal taxes.
Many Chinese immigrant families who qualify for this credit never claim it — either because they don't know it exists, or because they assume it doesn't apply to them as non-citizens. It does apply to resident aliens with qualifying children who have valid SSNs.
The 7 qualifying child tests
To claim the Child Tax Credit, your child must pass all seven tests:
| Test | Requirement | Key detail |
|---|---|---|
| Age | Under 17 at the end of the tax year | Child who turns 17 during the year does NOT qualify |
| Relationship | Your child, stepchild, foster child, sibling, step-sibling, or descendant of any of these | Adopted children qualify the same as biological children |
| Residency | Lived with you for more than half the year | Temporary absences (school, vacation, medical) still count as living with you |
| Dependency | You claim them as a dependent on your return | Only one person can claim a child as a dependent |
| Support | Child did not provide more than half of their own financial support | Most children under 17 automatically meet this test |
| Joint return | Child did not file a joint return with a spouse (unless only to claim a refund) | Rare edge case — most children under 17 don't file jointly |
| Social Security Number | Child has a valid SSN issued before the return due date | ITIN does not qualify for CTC (but may qualify for Credit for Other Dependents) |
Income phase-out: does it affect you?
The credit begins to phase out at these Modified AGI thresholds:
- $200,000 for single filers, head of household, and married filing separately
- $400,000 for married filing jointly
Above these thresholds, the credit is reduced by $50 for each $1,000 of income over the limit. Most families with children are well below these thresholds and receive the full credit.
Many families think they can't benefit from the CTC because they don't owe taxes. That's not true for the refundable portion. If you have two qualifying children and owe $0 in taxes, you can still receive up to $3,400 in refundable Additional Child Tax Credit. File your return — it's the only way to claim it.
How to claim the credit
- List your qualifying children on your Form 1040 (Section for Dependents), including their SSNs.
- Complete Schedule 8812 — Credits for Qualifying Children and Other Dependents. Tax software does this automatically.
- The credit is calculated automatically — software determines how much of the $2,000 per child reduces your tax (non-refundable portion) and how much becomes a refund (ACTC, up to $1,700).
The Child Tax Credit requires a valid Social Security Number for each qualifying child. Children with ITINs do not qualify for the CTC. If your child doesn't yet have an SSN, apply for one — children with work authorization or citizenship can receive an SSN. Children without SSN eligibility may qualify for the Credit for Other Dependents ($500, non-refundable).