Child Tax Credit Changes
The maximum credit per qualifying child is $2,000 (increase from $1,000). The definition of a qualifying child has not changed. The refundable amount of the credit is limited to $1,400 per qualifying child. The earned income threshold amount used to calculate the refundable portion of the credit decreased from $3,000 to $2,500.
A new credit for other dependents of up to $500 is available for each dependent who doesn't qualify for the child tax credit.
The taxpayer must still include a valid Social Security number (SSN) for each qualifying child for whom the maximum $2,000 credit is claimed, and that SSN must also have been issued by the due date of the tax return (including extensions). A qualifying child who is ineligible for the child tax credit because that child did not have a valid SSN, or did not have a valid SSN by the due date of the tax return (including extensions) may still qualify for the non-refundable $500 credit.
The threshold at which the credit begins to phase out increased: