Good news for Kansas families: the Child Tax Credit is $2,200 per qualifying child starting with your 2025 return—and this enhancement is permanent. Beginning with 2026, the credit amount will be indexed for inflation in $100 steps, so benefits can rise over time.
What’s changed
- Amount: Up from $2,000 to $2,200 per child (2025).
- Effective: Starting tax year 2025 and beyond.
- Indexing: Credit amount is inflation‑adjusted for tax years after 2025. The refundable cap ($1,400) is inflation‑adjusted after 2024 ($1,700 in 2025 guidance).
- Permanence: The expanded CTC framework continues indefinitely.
Who qualifies (key rules)
- You (at least one parent on joint returns) and your child must have valid Social Security numbers.
- SSN must be issued to US citizen or as specified under Social Security Act.
- SSN must be obtained before your tax return due date.
- Child must be under age 17.
- Income phase‑outs: Credit begins to phase out at $200,000 MAGI (single/HOH) and $400,000 (MFJ).
What it means for families
- Annual boost: +$200 per child versus 2024, with potential inflation increases in later years.
- Long‑term planning: Over 17 eligible years (birth through age 16), that’s $3,400 more at today’s amount, and likely higher as indexing kicks in.
Why This Matters
- Permanent vs. temporary: While most provisions in the One Big Beautiful Bill expire in 2028, the Child Tax Credit increase continues indefinitely.
- Predictable support: Families can count on this enhanced benefit for long-term planning, unlike temporary provisions.
- Builds on existing benefits: This enhancement adds to the existing Child Tax Credit structure, making it more valuable for working families.
How It Works with Other New Benefits
- Complements Trump Accounts: Starting in 2026, families can use both the enhanced Child Tax Credit and establish Trump Accounts for the same children.
- Stacks with other deductions: The Child Tax Credit reduction of your tax owed works alongside other new deductions that reduce your taxable income.
- Family financial planning: The permanent nature makes it reliable for long-term family budgeting and planning.
What You Should Do Now
For Current Parents
- 1. Ensure Social Security number compliance for all family members.
- Update your tax planning to include the additional $200 per child.
- Consider coordination with other new family benefits.
- Plan for Trump Account opportunities starting in 2026.
For Expecting Parents
- Obtain Social Security numbers for new babies promptly.
- Factor enhanced credit into family financial planning.
- Prepare for Trump Account eligibility if born after January 1, 2025.
For Tax Planning
- Coordinate with other deductions for optimal tax strategy.
- Consider timing of income to maximize all family benefits.
- Plan for permanent vs. temporary benefits in your strategy.
Why Professional Guidance Helps
- Coordination complexity: The enhanced Child Tax Credit works best when coordinated with other tax planning strategies.
- Maximizing family benefits: Professional planning ensures you’re capturing all available family-focused tax benefits.
- Long-term planning: The permanent nature of this enhancement makes it valuable for long-term family financial planning.
Ready to maximize your family’s tax benefits? Contact us to understand how the enhanced Child Tax Credit coordinates with your overall family financial strategy and other new tax opportunities.
