OBBBA Expanded the Child Tax Credit to $2,200 Per Child

TLDR

OBBBA permanently kept the TCJA-era $2,000 base Child Tax Credit and bumped it to $2,200 per qualifying child starting in tax year 2025 ($1,700 maximum refundable portion). Both the qualifying child and the taxpayer claiming the credit now need valid SSNs (previously, only the child needed one). The CTC is indexed for inflation starting in 2026. Income phase-out remains at $200K single / $400K MFJ. The $500 nonrefundable credit for non-child dependents continues.

In this guide, you’ll learn:

See the three OBBBA changes to the CTC: $200 increase, permanent + inflation-indexed, new SSN rule
Understand the SSN requirement change that affects ITIN-using households
Recognize what didn’t change: phase-out thresholds, refundability, age + relationship + residency rules
See how the credit works with Trump Accounts and with older family tools, like 529 plans and gifts.
Get the AGI-management move that preserves CTC eligibility when you’re near the $400K MFJ phase-out

#What’s new in OBBBA’s CTC

OBBBA made three changes to the Child Tax Credit.

$2,000 → $2,200

Per qualifying child

$200 increase, effective 2025
$1,700

Max refundable portion

Per child in 2025
$200K / $400K

Phase-out (single / MFJ)

Unchanged from prior law
Indexed

Inflation adjustment

Begins 2026, grows over time

Source: One Big Beautiful Bill Act, Child Tax Credit provisions.

1. $200 increase to the base credit. Pre-OBBBA (TCJA-era): $2,000 per qualifying child. Post-OBBBA (effective 2025): $2,200 per qualifying child.

For a family with two qualifying children, that’s $400/yr of additional tax credit value. Modest but real.

2. Permanence + inflation indexing. The TCJA-era $2,000 credit was scheduled to revert to $1,000 at end of 2025 (a major reduction). OBBBA made the credit permanent at the higher level. Starting in 2026, the credit will be adjusted annually for inflation: meaning it grows over time rather than staying static.

3. SSN requirement for the taxpayer. Pre-OBBBA, the qualifying child needed a valid SSN, but the taxpayer claiming the credit only needed a TIN (which could be an ITIN). Post-OBBBA, both the qualifying child AND the taxpayer claiming the credit need valid SSNs.

This affects taxpayers using ITINs (typically immigrants without work authorization or those without SSNs for various reasons). They can no longer claim the CTC.

#What didn’t change

The phase-out and refundability rules remained the same:

Phase-out threshold: $200,000 AGI single / $400,000 AGI MFJ (unchanged)
Phase-out rate: $50 reduction per $1,000 of AGI above threshold
Maximum refundable portion: $1,700 per child in 2025
$500 nonrefundable credit for other dependents (parents, college-age kids, etc. who qualify as dependents but not qualifying children): unchanged
Age requirement: child must be under 17 at end of tax year
Relationship + residency requirements: The child must live with you for more than half the year. The child must not pay for more than half of their own support. The child must also be a US citizen, national or resident.

#What this means for ETS clients

#For ETS-client families with qualifying children

The $200 increase is automatic. Your return preparation will reflect the new amount without any special action needed.

Verification: make sure both you and any qualifying child have valid SSNs on file. If anyone in your household uses an ITIN, the new rule may affect your CTC eligibility. Discuss this with your tax preparer.

#For ETS-client families with kids born 2025-2028

You may layer multiple OBBBA family-favorable provisions:

Child Tax Credit: $2,200/yr per qualifying child
Trump Account federal $1,000 seed for births 2025-2028
Annual Trump Account contributions up to $5K
529 plan superfunding if applicable
Annual exclusion gifting for wealth-transfer planning

The compounded impact across these provisions can be substantial for families with multiple young children.

#For high-income ETS clients above the CTC phase-out

If your AGI is above $400K MFJ ($200K single), the CTC phases out. The credit falls by $50 for every $1,000 of income over the limit. With one child, it is gone at about $444,000 on a joint return and $244,000 for a single filer. With more children, it lasts to a higher income. The OBBBA changes don’t affect the phase-out thresholds, so high-income families remain unable to claim the full CTC.

Strategic move: AGI management. Say you’re hovering around the phase-out threshold. Retirement contributions, HSA contributions, and business deductions that reduce AGI can preserve some or all of the CTC.

#Common questions

When does the $2,200 take effect? For the 2025 tax year onward. Returns filed in early 2026 (for the 2025 tax year) will reflect the new amount.

Does the OBBBA increase apply to the refundable portion? The refundable portion remains at $1,700 for 2025. The $200 increase to the total credit ($2,000 → $2,200) is in the nonrefundable portion. So lower-income filers (who are limited by the refundable cap) see less practical benefit from the increase.

What if I use an ITIN? To claim the credit you need a Social Security number that is valid for work. If you file a joint return, only one spouse needs one. Your child also needs a Social Security number. If you have an ITIN and no SSN, and you file alone, you cannot claim the credit. This is a meaningful change for taxpayers without SSNs, including some immigrant taxpayers, certain non-resident spouses, and others. Check with your tax preparer on alternatives. The $500 credit for other dependents may still apply in some cases.

What about the $500 credit for non-child dependents? Continues unchanged. Available for dependents who don’t qualify as qualifying children for the CTC (college-age children, elderly parents you claim, etc.). $500 per qualifying dependent.

Will inflation indexing make a real difference? Modest annually. The credit will rise with inflation, but only in $100 steps. The 2026 credit is still $2,200. It moves up when the total inflation increase passes the next $100. Real but not life-changing.

Does the credit apply if my child is born in 2025? Yes. If the child meets the qualifying-child rules (born in or before the tax year, lived with you 6+ months, etc.). For a child born in 2025, the family claims the $2,200 credit on the 2025 return.

If you have children under 17 and want CTC, Trump Account, and 529 planning coordinated, the Discovery call is the right next step. Family-planning provisions stack meaningfully under post-OBBBA rules.