Millions of working families in the U.S. depend on tax credits to help cover basic living costs. These include food, housing, childcare, and education. In 2025, some tax credits are getting bigger and better.
Under a new law signed by President Donald Trump, called the “One Big Beautiful Bill,” several family tax credits are enhanced. This means you could get more money back on your taxes or reduce how much you owe.
Here’s a simple breakdown of the main family tax credits and how they are changing in 2025.
Child Tax Credit in 2025
In 2025, the Child Tax Credit (CTC) will increase to $2,200 per child. This is up from $2,000 in previous years. If this law didn’t pass, the amount would have dropped to $1,000 in 2026.
The refundable part of the credit is now $1,700, which means you could get this amount even if you owe no tax.
To get this credit, both the child and the parent (or guardian) must have a Social Security number.
Some states also offer a state child tax credit. Right now, 15 states plus Washington D.C. have their own child tax credit programs.
Adoption Tax Credit in 2025
The federal adoption tax credit is now worth up to $17,280 for 2025. This helps parents cover adoption-related costs.
You can claim costs like adoption fees, court fees, and travel. There’s also an income exclusion for adoption help offered by employers.
The credit amount depends on your modified adjusted gross income (MAGI). For 2025:
- It begins to phase out at $259,190
- It ends completely at $299,190
The new law also makes this credit partially refundable, letting you claim up to $5,000 even if you owe no tax. This change starts from January 1, 2025.
Also, tribal governments can now decide if a child has special needs for adoption purposes.
Earned Income Tax Credit (EITC) in 2025
The Earned Income Tax Credit (EITC) gives a refund to low- and moderate-income workers.
The credit depends on your income, filing status, and number of children. Here’s the breakdown for 2025:
EITC Amounts for 2025
| Number of Children | Max Credit (2025) |
| 0 | $649 |
| 1 | $4,328 |
| 2 | $7,152 |
| 3 or more | $8,046 |
You can’t get this credit if your investment income is over $11,950.
EITC Phase-Out (Married Filing Jointly)
| Children | Phase-in Income | Phase-out Income | Earned Income |
| 0 | $17,730 | $26,214 | $8,490 |
| 1 | $30,470 | $57,554 | $12,730 |
| 2 | $30,470 | $64,430 | $17,880 |
| 3+ | $30,470 | $68,675 | $17,880 |
EITC Phase-Out (All Other Filers)
| Children | Phase-in Income | Phase-out Income | Earned Income |
| 0 | $10,620 | $19,104 | $8,490 |
| 1 | $23,350 | $50,434 | $12,730 |
| 2 | $23,350 | $57,310 | $17,880 |
| 3+ | $23,350 | $61,555 | $17,880 |
Some states and cities, like New York City and D.C., also offer their own version of the EITC.
Child and Dependent Care Tax Credit
The Child and Dependent Care Tax Credit (CDCTC) helps families with costs for child care or care of a disabled adult.
Before 2025, the credit covered up to 35% of eligible expenses. Under the new law, this increases to 50% for some families.
Here’s how the new rules work:
- If your AGI is $15,000 or less, you get the full 50% credit.
- For incomes over $15,000, the percentage slowly goes down.
- If your AGI is over $43,000, you get a 20% credit.
These changes apply starting January 1, 2026.
Expense Limits
| Number of Dependents | Max Eligible Expenses |
| One | $3,000 |
| Two or More | $6,000 |
This credit is non-refundable, so it only helps reduce your tax owed.
What’s Next for Family Tax Credits
President Trump’s law brings some positive changes for many families. But it also adds rules that may stop some people from claiming credits they used to get.
Because these tax credits affect your money directly, it’s important to stay updated. Always check federal and state tax rules before filing.
FAQs
What is the child tax credit in 2025?
$2,200 per child.
Is the adoption credit refundable?
Yes, up to $5,000.
How much is EITC with 2 kids?
Up to $7,152.
When do new credits start?
Most begin in 2025 or 2026.
Is CDCT refundable?
No, it is non-refundable.