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 $2,200 per qualifying child under 17 — and up to $1,700 of that is refundable, meaning you may receive it as a cash refund even if you owe no federal income tax, as long as you have enough earned income. For Tax Year 2026, the maximum credit remains $2,200 per qualifying child and the refundable amount remains up to $1,700.
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 — as long as you (or your spouse, if filing jointly) also have an SSN valid for employment.
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 an SSN valid for employment, 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 — the amount depends on your income, and you need earned income of at least $2,500 to be eligible. 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 first uses the credit (up to $2,200 per child) to reduce your tax, then figures whether any unused part can be refunded as the ACTC (up to $1,700 per child, based on your earned income).
The Child Tax Credit requires a Social Security Number valid for employment for each qualifying child. Children with ITINs do not qualify for the CTC. Beginning with Tax Year 2025, the person claiming the credit (or their spouse, if married filing jointly) must also have an SSN valid for employment. 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).