The child tax credit could be worth over $2,000 under Republicans' spending plan—but millions of families wouldn't benefit
Both the House and Senate versions of the budget reconciliation bill include an increase to the child tax credit, but the House's version gives a larger payout to families.
The child tax credit is a partially refundable tax credit available to taxpayers with children or dependents under age 17. Parents and guardians earning $200,000 a year or less are eligible to claim the full $2,000 credit per child through tax year 2025. Without new legislation, that limit will revert to $1,000 per qualifying child after the expiration of the 2017 Tax Cuts and Jobs Act in 2025.
Congress is trying to increase the maximum credit amount through its budget reconciliation process, but the chambers differ on proposed maximum amounts. The House proposal would increase the maximum credit to $2,500 per child, while the Senate's version provides up to $2,200 per qualifying dependent.
Under the House's plan, the $2,500 limit would remain in place until 2028, then drop to an estimated $2,100 and be indexed for inflation in subsequent years, according to the Tax Policy Center. The Senate's plan would also adjust the maximum credit amount for inflation after 2026. Both proposals keep the maximum refundable portion of the credit at $1,700.
Regardless of the bill's final maximum credit figure, an estimated 17 million children still wouldn't qualify for the full benefit, according to an analysis by the Center on Budget and Policy Priorities.
That's because the child tax credit isn't fully refundable. As of 2025, families who who don't owe income taxes and earn less than $2,500 cannot claim any portion of the child tax credit. Those earning more than $2,500 may qualify for the additional child tax credit — the refundable portion of the credit worth up to $1,700. Families with incomes over $2,500 can receive up to $1,700 as a refund if the rest of the child tax credit covers their tax liability.
Around 2 million children don't currently qualify for any of the child tax credit because their families earn less than $2,500, according to the Tax Policy Center. Another 15 million receive some, but not the full credit, because their families make more than $2,500, but not enough that their income taxes exceed the amount that enables them to claim the full credit.
Both the Senate and House proposals for the child tax credit would continue a restriction introduced in 2018 that requires children to have Social Security numbers in order for their families to be able to claim the credit. Around 1 million children lost their eligibility when this rule went into effect in 2018, according to the Tax Policy Center.
The House proposal would also require both parents to have Social Security numbers to claim the benefit, while the Senate's proposal would only require one parent to have one.
Currently, married couples who file separately can still claim the child tax credit for eligible children and dependents, but the House proposal would end that eligibility while the Senate's plan would keep it in place.
The number of children with SSNs who don't receive the maximum child tax credit benefit would grow from 17 million to over 26 million under the House's proposal, according to Tax Policy Center estimates.
The proposal is currently up in the air with conflicting reports on whether Senate Republicans have the support needed to pass the bill as is. President Donald Trump is pushing to see the bill sent to his desk by July 4, which Senate Majority Leader John Thune (R-S.D.) has said will happen.
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