Extension and Enhancement of Child Tax Credit and Non-Child Dependent Tax Credit
July 8, 2025
Many of the tax provisions of the Tax Cuts and Jobs Act (TCJA), passed in 2017, were set to expire on December 31, 2025 – including the changes made to the child tax credit and non-child dependent tax credit. However, under the newly passed One Big Beautiful Bill Act (OBBBA), both credits have been enhanced and extended, effective January 1, 2025.
The table below compares (1) the current law under the TCJA, (2) what the law would have been without the OBBBA and after the TCJA provisions expired, and (3) the new law under the OBBBA.
|
Category |
Current Law (TCJA) |
Post TCJA (No New Law) |
New Law (OBBBA) |
|
Child tax credit – qualifying children under age 17 |
Maximum credit of $2,000 per qualifying child |
Maximum credit of $1,000 per qualifying child (not indexed for inflation) |
Maximum credit of $2,200 per qualifying child in tax year 2025, indexed annually for inflation thereafter
|
|
Non-child dependent tax credit – dependents over the age of 18 |
$500 nonrefundable tax credit |
No tax credit available for non-child dependents
|
$500 nonrefundable tax credit is made permanent (not indexed for inflation)
|
|
Social security number (SSN) requirements |
Dependent: A valid SSN is required to be reported
Taxpayer No SSN requirement. |
Child/Dependent: A valid SSN is required and must be reported on the tax return.
Taxpayer: A valid SSN is required for the taxpayer (or at least one spouse on a joint return).
These requirements are made permanent starting in tax year 2025.
|
Child/Dependent: A valid SSN is required and must be reported on the tax return.
Taxpayer: A valid SSN is required for the taxpayer (or at least one spouse on a joint return).
These requirements are made permanent starting in tax year 2025.
|
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