With a new phase of leadership possibly on the horizon many families are wondering what changes might come to their finances, especially regarding tax benefits. One program under the spotlight is the Child Tax Credit (CTC) which helps millions of American families every year. If Donald Trump wins another term in office there could be significant adjustments to this credit.
What Could Happen to the Child Tax Credit?
Back in 2017, Trump signed the Tax Cuts and Jobs Act (TCJA) which increased the Child Tax Credit to $2,000 per child under 17. This law also raised the income limits so more families could qualify.
However, these changes are set to expire after 2025 unless Congress steps in to extend them. If that doesn’t happen the credit could be cut in half dropping to just $1,000 per child.
Another concern is how refundable the credit will remain. Right now, even if a family owes little or no tax, they can still receive up to $1,700 per child as a refund. But proposed changes could limit this benefit making it harder for lower-income families to receive financial support.
Recently, a proposal aimed at expanding the Child Tax Credit and allowing retroactive payments for the 2023 tax year passed in the House but was blocked in the Senate. This means uncertainty remains about future changes to the program.
Child Tax Credit Breakdown for 2024 and 2025
Here’s a look at what families can expect in the coming years:
| Year | Maximum Credit per Child | Refundable Portion | Income Limit for Full Credit (Married) | Income Limit for Full Credit (Single) |
| 2024 | $2,000 | Up to $1,700 | $400,000 | $200,000 |
| 2025 | $2,000 | Up to $1,700 | $400,000 | $200,000 |
| 2026* | $1,000 | Uncertain | Likely Lower | Likely Lower |
If no new legislation is passed.
Who Qualifies for the Child Tax Credit?
To be eligible parents must meet specific criteria:
- The child must be under 17 years old.
- The child must be related to the taxpayer (son, daughter, stepchild, sibling, etc.).
- The child must live with the taxpayer for at least half the year.
- The taxpayer must provide at least half of the child’s financial support.
- The child must have a valid Social Security number.
- The taxpayer must meet income requirements.
If you’re wondering about trump changes in CTC, check out our guide on Child Tax Credit Changes under Trump Presidency.
What Happens Next?
Unless Congress extends the TCJA provisions families should prepare for changes in 2026. If the credit amount drops back to $1,000 per child and income limits shrink many families could see a reduction in their tax benefits.
Lawmakers will likely debate this issue as the deadline approaches, but for now, families should stay informed and plan ahead.
FAQs About Trump Cut the Child Tax Credit
Will the Child Tax Credit be lower in 2026?
If no changes are made, the credit will decrease from $2,000 to $1,000 per child in 2026.
Is the Child Tax Credit refundable?
Currently, up to $1,700 of the credit is refundable, meaning families can receive money back even if they owe no taxes. Future changes could reduce this benefit.
How can I claim the Child Tax Credit?
You can claim the credit when you file your tax return. Make sure you meet all eligibility requirements to qualify for the full amount.