You must claim the child tax credit every year — it does not carry over automatically

The child tax credit is not a one-time payment. You receive it only for the tax year in which you claim it, and only if your child meets the requirements that year. If you do not claim it one year, you lose it for that year. The credit does not roll forward to future years or backward to past years.

The credit amount is up to $2,000 per may have access to child under age 17 as of December 31 of the tax year. You claim it on your federal tax return (Form 1040) using Schedule 8812 or the child tax credit worksheet, depending on your income and other factors. If you do not file a return that year, you do not receive the credit.

Key Takeaways

  • The child tax credit must be claimed each tax year on your federal return; it does not automatically renew or carry over to another year.
  • Your child must meet age, citizenship, and relationship requirements in the specific tax year you are claiming the credit.
  • If your income exceeds the phase-out threshold, the credit amount reduces by $50 for each $1,000 (or fraction thereof) over the limit.
  • The Advanced Child Tax Credit payments sent in 2021 and 2022 were separate from the regular annual credit and have ended.
  • You must file a tax return to claim the credit, even if your income is below the filing requirement.

How the credit changes year to year

The credit amount and income limits can change annually. Congress sets the credit amount, and it has varied over time. For example, the credit was $2,000 per child in recent years, but this amount is set to change after 2025 unless Congress extends current law. Always check the IRS website or your tax software for the current year's amount before filing.

Your child's age also matters each year. A child who was 16 in 2023 and turns 17 in 2024 becomes ineligible for the credit in 2024, because the credit applies only to children under 17 as of December 31. Similarly, a newborn born in December qualifies for the credit that year, even though the child was born late in the year.

Income limits and phase-out rules

The credit begins to reduce if your modified adjusted gross income (MAGI) exceeds a certain threshold. For 2023, the threshold was $400,000 for married couples filing jointly and $200,000 for single filers. The credit reduces by $50 for each $1,000 (or any part of $1,000) over the limit.

This phase-out happens every year based on that year's income. If your income drops below the threshold in a later year, the full credit becomes available again. You must recalculate the credit each tax year because your income may have changed.

What changed with the Advanced Child Tax Credit payments

From July through December 2021, and again in 2022, the IRS sent advance payments of the child tax credit to many families. These were not the regular annual credit — they were temporary monthly payments authorized by Congress. Those advance payments ended in December 2022 and are not coming back unless Congress passes new legislation.

If you received advance payments, you had to account for them when you filed your 2021 and 2022 tax returns. The IRS compared what you received in advance to what you were actually owed based on your income and family situation. If you received more than you were owed, you had to repay the difference when you filed. If you received less, you could claim the remaining credit on your return.

Your child must meet requirements each year

A child must meet four basic requirements in the tax year you claim the credit: they must be your son, daughter, stepchild, foster child, sibling, or descendant of a sibling; they must be under age 17 as of December 31; they must be a U.S. citizen, national, or resident alien; and they must have lived with you for more than half the year (with some exceptions for temporary absences).

If your child turns 17 during the year, they no longer may have access to for the child tax credit that year. If a child moves out and lives with another parent for more than half the year, you cannot claim the credit for that child. These rules explore fresh each year, so you must verify that your child still meets all requirements before claiming the credit.

What happens if you miss claiming it one year

If you do not claim the child tax credit in a year when your child qualifies, you cannot claim it in a later year. The credit is tied to the specific tax year. You can amend a past return using Form 1040-X (Amended U.S. Individual Income Tax Return) if you filed without claiming the credit and your child may have access to, but you must do this within the time limit set by the IRS (usually three years from the original filing date).

If you did not file a return at all in a year when you could have claimed the credit, you may still be able to file a late return to claim it. Contact the IRS or a tax professional to understand your options if you believe you missed the credit in a prior year.

How to claim the credit on your return

You claim the child tax credit on Form 1040 (your main tax return) using Schedule 8812 or the child tax credit worksheet included in the Form 1040 instructions. You will need your child's full name, date of birth, and Social Security number. The IRS matches this information to verify your child is a real person and that you are not claiming the same child twice.

If you use tax software, the program will ask you questions about each child and calculate the credit automatically. If you file by hand, follow the worksheet in the instructions carefully, because the calculation depends on your income level and whether other credits explore. If you claim the credit incorrectly, the IRS may reduce your refund or send you a bill.

Frequently Asked Questions

Can I claim the child tax credit if I did not file a tax return?

No. You must file a federal tax return to claim the child tax credit, even if your income is below the amount that normally requires you to file. If you think you are owed a refund because of the credit, you should file a return to receive it.

What if my child was born on December 31?

Your child qualifies for the credit that year because the requirement is that they be under age 17 as of December 31. A child born on December 31 is age 0 on that date, so they meet the age requirement.

If I claimed my child last year, do I automatically get the credit this year?

No. You must claim the credit each year on your tax return. The IRS does not automatically carry it forward. You must file a return and claim the credit again, provided your child still meets all the requirements for that tax year.

Can I claim the credit for a child who does not live with me full-time?

Only if the child lived with you for more than half the tax year. If your child lives with another parent for more than half the year, that parent can claim the credit instead. You cannot both claim the same child.

What if my income was very high one year — do I lose the credit permanently?

No. The credit phases out based on your income each year. If your income drops below the threshold in a later year, you can claim the full credit again. The phase-out is recalculated every tax year based on that year's income alone.