The new Child Tax Credit could mean “cash in your pocket”

The Child Tax Credit is increasing under the One Big Beautiful Bill Act, signed on July 4. The law raises the maximum credit to $2,200 per child starting in 2025, with inflation adjustments beginning in 2026. Families must now provide Social Security numbers for themselves and qualifying children to claim the credit. Unlike a deduction, the Child Tax Credit reduces taxes dollar for dollar and remains partially refundable—up to $1,700 per child. Experts say the change could provide meaningful relief for families struggling with the costs of childcare, education, and daily living.