There's a lot of chatter in Congress about making changes to the Child Tax Credit, but so far, there’s no action. If nothing changes, the maximum amount of the child tax credit that may be refundable will be $1,700 in 2025.
For 2025, the maximum Earned Income Tax Credit (EITC) amount available is $8,046 for married taxpayers filing jointly who have three or more qualifying children—it was $7,830 in 2024. Phaseouts apply.
For 2025, the adoption credit for adopting a child with special needs is $17,280, and the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $17,280—up from $16,810 in 2024. The available adoption credit begins to phase out for taxpayers with modified adjusted gross income (MAGI) in excess of $259,190; it’s completely phased out at $299,190 or more.
The kiddie tax applies to unearned income for children under the age of 19 and college students under the age of 24. Unearned income is income from sources other than wages and salary, like dividends and interest. Your child must pay taxes on their unearned income in 2025, but if that amount is more than $1,350 but less than $13,500, you may be able to elect to include that income on your return rather than file a separate return for your child.
The same “regular” rules apply to earned income.