Child Tax Credit
The child tax credit increased to $2,200 per qualifying child for the 2025 tax year. A qualifying child is a child younger than 17 years old by the end of the year, lived with his or her parents/guardians for more than half the year, claimed as a dependent on the taxpayer’s return, not provide more than half of their own support throughout the year, be a U.S. citizen, and not file a joint tax return. Married filing joint taxpayers are eligible for the full child tax credit if their income does not exceed $400,000 in the 2025 tax year. All other taxpayers are eligible for the full credit if their income does not exceed $200,000 in the 2025 tax year.
Trump Accounts
Children who are US citizens and born between January 1, 2025, and December 31, 2028, are eligible to have a Trump Account. Households of any income may open an account and qualify for the one-time $1,000 contribution from the US government. Children born before January 1, 2025, who are under the age of 18 will also be eligible for a Trump Account with all its features, except for the $1,000 deposit from the government. Parents or guardians must set up and manage the account until a child turns 18.
IRS Form 4547 will need to be completed by the eligible child’s parent or legal guardian to open a Trump account on behalf of a child. Form 4547 will also be used to request the $1,000 U.S. government’s contribution to the account. Form 4547 can be filed with the parent or guardian’s 2025 income tax return, by mail or online option which will be available mid 2026 at trumpaccounts.gov.
In May 2026, the Treasury Department will send instructions to individuals who applied for government funded accounts on how to activate them.
Excluding the government’s $1,000 contribution, individuals (children, parents or guardians, grandparents, family members, friends, and employers) can contribute up to $5,000 per year into the account. Of this $5,000 limit, up to $2,500 per year can come from each parent’s employer and will not count towards the parent’s taxable income.
Contributions to Trump Accounts will be accepted starting July 4, 2026.
Deposits in Trump accounts must be invested in stock mutual funds or exchange traded funds mirroring the S&P 500 or another American stock index. Deposits cannot be withdrawn prior to the beneficiary turning 18 years old. After the child turns 18, the Trump account is treated as an IRA. Income withdrawals are taxed at ordinary income rates. Unless an individual meets certain exceptions when the money is withdrawn before age 59 ½, he or she will have their earnings subject to a 10% penalty.