Child Tax Credit Eligibility Changes Under the One Big Beautiful Bill Act (2025)

Introduction

The One Big Beautiful Bill Act (OBBBA) made significant changes to the Child Tax Credit (CTC) rules for 2025. If you prepare returns with UltimateTax, it is important to understand how these changes affect who can claim the credit, especially for taxpayers who file with an Individual Taxpayer Identification Number (ITIN).

What changed under the OBBBA

The OBBBA updated the Child Tax Credit eligibility rules and narrowed who can claim the credit. One of the most important changes is that a taxpayer who files with an ITIN is no longer eligible to claim the CTC, even if the qualifying child has a valid Social Security Number (SSN).

Under prior law, a child with a valid SSN could allow a parent to claim the CTC even when the parent filed with an ITIN. The OBBBA eliminated that pathway.

Who is eligible under the new rules

In general, taxpayers may be eligible for the CTC under the new rules if they meet all applicable federal requirements, including filing with a valid SSN when required and claiming a qualifying child who meets the credit's age, relationship, residency, support, and citizenship or residency rules.

Taxpayers who file with a valid SSN and otherwise meet the CTC requirements may still be eligible to claim the credit.

Who is not eligible under the new rules

Taxpayers who file with an ITIN are not eligible for the Child Tax Credit under the OBBBA, even if their qualifying child has a valid SSN.

This is a major change from prior law and may affect families who previously qualified for the credit.

What affected taxpayers should know when filing

If you are preparing a return for a taxpayer who may be affected by these changes, review the taxpayer's filing status and identification number before claiming the CTC. If the taxpayer uses an ITIN, do not claim the Child Tax Credit under the new rules.

Because this is a significant change from prior law, taxpayers should not assume they qualify based on last year's return or prior filing history. Always confirm the current-year eligibility rules before entering the credit in the return.

If you are unsure how the OBBBA applies to a specific return, consult the latest IRS guidance or a qualified tax professional.

Additional information

Source: Tax Policy Center

https://taxpolicycenter.org/taxvox/child-tax-credit-changes-boost-and-stabilize-benefits-some-still-exclude-lowest-income