Child Tax Credit Updates Tax Pros Need to Know for 2025–2026
Recent legislation has introduced several important changes that will impact how tax professionals handle returns involving children and family-related credits for the 2025 tax year and beyond. Here’s a quick breakdown of what’s new and what to keep in mind this upcoming filing season.
SSN Now Required for CTC and ACTC
Beginning with tax year 2025, a valid Social Security number is required to claim both the Child Tax Credit (CTC) and the Additional Child Tax Credit (ACTC). For joint filers, at least one spouse must have a valid SSN. The other spouse must have either an SSN or an ITIN that was issued on or before the due date of the return. This change will directly affect eligibility and should be carefully reviewed during intake and document collection.
SSN Now Required for CTC and ACTC
Beginning with tax year 2025, a valid Social Security number is required to claim both the Child Tax Credit (CTC) and the Additional Child Tax Credit (ACTC). For joint filers, at least one spouse must have a valid SSN. The other spouse must have either an SSN or an ITIN that was issued on or before the due date of the return. This change will directly affect eligibility and should be carefully reviewed during intake and document collection.
Increased Child Tax Credit Amount
The maximum Child Tax Credit amount has increased to $2,200 per qualifying child. This provides additional value to eligible families and may impact refund projections and planning conversations with clients.
Important Reminders for ACTC
The maximum Additional Child Tax Credit remains $1,700 per qualifying child. As in prior years, refunds for returns claiming ACTC cannot be issued before mid-February 2026. This delay applies to the entire refund, not just the ACTC portion, and is important to communicate to clients early to manage expectations.
New: Trump Accounts and Form 4547
A new type of IRA-style account, known as a “Trump Account,” can now be established for the exclusive benefit of certain children. Parents, guardians, and other authorized individuals may elect to open these accounts using the newly released IRS Form 4547.
For eligible children—those born after 2024 and before 2029, who are U.S. citizens and meet additional requirements—an authorized adult may also request a $1,000 pilot program contribution from the U.S. Treasury. Both the election to open the account and the request for the government contribution are made on Form 4547, which can be filed alongside the authorized individual’s 2025 income tax return.
This marks one of the most significant new long-term savings opportunities tied to children in recent years, and tax professionals should familiarize themselves early with Form 4547 and its instructions.
