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8.01.2025

Big Changes Coming to the Child Tax Credit: What Nevada Families Need to Know

The Child Tax Credit (CTC)—a major source of financial support for families—is changing in 2025. These changes could mean more money for some households and less for others, depending on income, tax filing status, and immigration status. First 5 Nevada is here to help you understand how these updates may impact your family.

What’s New in 2025?

Starting with the 2025 tax year (filed in 2026):

• The credit increases from $2,000 to $2,200 per child under age 17.
• In 2026 and beyond, the credit will increase slightly each year to keep up with the cost of living (also known as being “indexed to inflation”).

For a family with two children, this could mean $400 more next year, with continued increases after that.

Who Qualifies?

To be eligible for the Child Tax Credit:

• Children must:
• Be under 17 years old by the end of 2025.
• Live with you for at least half the year.
• Have a valid Social Security Number (SSN).
• Parents or caregivers must:
• Also have a valid SSN (at least one parent in a married couple).
• Earn at least $2,500 per year to begin qualifying for the credit.

The full credit is available to families earning around $30,000 or more, but it starts phasing out for families making over $200,000 (single) or $400,000 (married).

Who Might Be Left Out?

Some families may no longer qualify—or may qualify for a smaller amount:

• Mixed-status households (e.g., a child with an SSN but a parent without one) will be excluded from the credit unless one parent has a valid SSN.
• Families who earn less than $2,500 per year will not receive the credit.
• Lower-income families may see smaller payments compared to past years due to how the credit phases in with income.

Why It Matters

Families often rely on the Child Tax Credit to help cover:

• Food, clothing, and basic needs
• Child care and after-school programs
• Health care and school supplies

Even a few hundred dollars per child can make a big difference, especially as the cost of living continues to rise. But not all families will benefit equally from these changes.

Also, the same bill made cuts to programs like Medicaid and SNAP, which helps low-income families. Although we still don’t know the full impacts of these cuts, it is possible that some families who see an increase in the Child Tax Credit may lose access to other financial assistance programs.

What This Means for Nevada Families

What to do Next

1. Check your SSNs

• By the time you file taxes in 2026, kids and at least one parent must have an SSN.

2. Keep track of your earnings

• You can receive the full credit only if you earn at least $2,500 in 2025.
• Don’t worry—you can still file even with low income (that’s how you claim the credit).

3. File your taxes next spring

• You claim the Child Tax Credit using Form 1040 and Schedule 8812 when you file your 2025 taxes in early 2026.
• Even if you don’t owe income tax, filing lets you get any credit you’re due.
• Tax help is available – most online tax filing systems offer no-cost tax filing for simple returns and will automate these new rules. There are also in-person assistance programs, including the Volunteer Income Tax Assistance (VITA) program, which offers free tax preparation and assistance to qualified individuals.

4. Plan for the future

• Because benefits like Medicaid and SNAP may be cut, think ahead about budgeting for healthcare and food.
• Use local support—like food pantries, school meal programs, and free or low-cost clinics—to stay on top of needs.
• See What You Qualify For on First 5 Nevada.

Read our related article, Tax Tips for New Parents, which provides valuable tax tips and information from the Internal Revenue Service (IRS).