A permanent boost — with a catch
The Child Tax Credit (CTC) has received a permanent increase under new legislation signed by former President Donald Trump. What was once a $1,000 credit per qualifying child rose to $2,000 under the 2017 Tax Cuts and Jobs Act (TCJA). Now, with the passage of Trump’s One Big, Beautiful Bill Act, the maximum credit has climbed again—reaching $2,200 per child for the 2025 tax year, with annual inflation adjustments beginning in 2026.
At first glance, this looks like an undeniable win for American families. But tucked into the law is a change that could wipe away that $200 boost — or even the full credit — for millions of children. The issue isn’t about how much you earn or how many kids you have. It’s about something far more bureaucratic: Social Security numbers.
The new requirement that changes everything
Before the TCJA, children didn’t need a Social Security number (SSN) to qualify for the CTC. An Individual Taxpayer Identification Number (ITIN) was enough. Under the new law, however, only children with valid Social Security numbers can receive the full credit.
The One Big, Beautiful Bill Act goes even further — now both the child and the parent (or parents, if filing jointly) must present work-eligible Social Security numbers to claim the benefit. In other words, if either party lacks an SSN, that $2,200 credit disappears.
According to the Center for Migration Studies, more than 4.5 million children, many of whom are U.S. citizens, will no longer qualify for the full Child Tax Credit under these stricter rules. For families already struggling to pay bills, losing this extra help could be devastating.
Who’s hit the hardest?
The new rules disproportionately affect mixed-status families — households where children are U.S. citizens but parents are not. Under the old system, these families still qualified for at least part of the credit. Now, no valid SSN for a parent means no credit at all.
And that’s not the only problem. The law also preserves income requirements that leave many low-income families behind. To qualify for the refundable portion of the CTC, a family typically must earn at least $2,500 annually. Families earning less than that threshold — who arguably need help the most — won’t see a penny of the refund.
According to the Tax Policy Center, around 17 million children — roughly one in four — will continue to receive less than the full CTC or no credit whatsoever, either because of income limits or the new Social Security mandate.
A political win with a personal cost
For Trump and Republican lawmakers, making the TCJA permanent was a major political victory. The child tax credit increase is being celebrated as a middle-class tax cut, and the annual inflation adjustments beginning in 2026 are being framed as proof that the credit will “keep up with the times.”
But behind the speeches and headlines, many cash-strapped families are doing the math and finding themselves shortchanged. A credit worth $2,200 doesn’t help if you’re no longer eligible to claim it.
What this means for your tax return
If you’re planning to claim the Child Tax Credit for the 2025 filing season and beyond, you’ll need to double-check your paperwork. Here’s what to keep in mind:
- Your child must have a valid Social Security number. ITINs are no longer enough.
- You (and your spouse, if filing jointly) must also have valid, work-eligible SSNs.
- Families earning under $2,500 annually generally won’t get a refund from the CTC.
- The maximum refundable amount is capped at $1,400 per child, subject to inflation adjustments.
Failing to meet any of these requirements could mean losing out on hundreds — or even thousands — of dollars you were counting on.
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The bottom line
What was promoted as a permanent tax break for American families now comes with a hidden string attached. Millions of children could lose access to the credit entirely, and many others will receive less than expected. For those who can’t meet the Social Security number mandate, the $200 increase — along with the full $2,200 credit — may simply vanish.
In short: the Child Tax Credit just got bigger, but not everyone is invited to share in the boost.
