The refundable portion of the child tax credit – a tax credit parents can receive for qualifying children – will be $1,700 for 2025, which is unchanged from 2024. That figure represents how many families can claim on their tax returns even if there is no tax balance.

The maximum child tax credit of $2,000 per child under age 17 is available to parents with up to $400,000 in adjusted gross income if married and filing jointly, or less than $200,000 if single. These figures are also unchanged compared to 2024.

Notably, the terms of the current child tax credit expire at the end of the 2025 tax year. At that time, the child tax credit is expected to drop to a maximum of $1,000 per child.

However, lawmakers on both sides of the aisle have touted proposals to make the credit more generous.

The new changes for 2025 are standard adjustments for inflation to ensure taxpayers don’t face higher tax liabilities, said Alex Durante, an economist at the Tax Foundation. The terms still reflect the Tax Cuts and Jobs Act of 2017.

“But the following year, in 2026, families should expect higher tax liabilities unless Congress decides to extend these tax provisions, which were introduced in 2017,” Durante said.

A tax credit for low- to middle-income individuals and families – the earned income tax credit, or EITC – will have higher maximum amounts in 2025.

The income tax credit helps qualifying individuals and families reduce the amount of tax they owe, while also potentially providing a refund, according to the IRS.

In 2025, the maximum EITC amount will be $8,046 for eligible taxpayers with three or more qualifying children. That’s an increase from $7,830 for tax year 2024.

The maximum amount available for eligible taxpayers with two qualifying children will be $7,152, up from $6,960 in 2024; one eligible child, $4,328, up from $4,213 in 2024; and no eligible children, $649, up from $632 this year.

To qualify for the tax credit, individuals and families must fall below certain adjusted gross income thresholds, defined as total income excluding any eligible deductions.

In 2025, the maximum AGI eligible for the EITC for married couples with three or more children will be $68,675, up from $66,819 in 2024; and for single, head-of-household and widowed filers with three or more children, $61,555, adjusted from $59,899 this year. The EITC is also subject to phase-out thresholds.

Taxpayers are also limited to how much investment income they can have to qualify for the earned income tax credit. In 2025, that threshold will rise to $11,950, up from $11,600 in 2024. If investment income is above $11,950 in 2025, taxpayers will not qualify for the credit.

Other changes announced by the IRS could also impact families.

The maximum adoption credit for a child, including children with special needs, will apply to qualified expenses up to $17,280 in 2025, up from $16,810 in 2024.

The annual exclusion for gifts will increase to $19,000, up from $18,000 in 2024. If taxpayers give $19,000 to each of their children in 2025, the annual exclusion will apply to each gift.