What the Child Tax Credit Is and Who Can Claim It

The Child Tax Credit is a reduction in the federal income tax you owe, based on how many children you support. For the 2024 tax year, the credit is worth up to $2,000 per child under age 17. When you file your tax return, you subtract this amount from the total tax you owe — so if you owe $3,000 in federal tax and have one may have access to child, your tax bill drops to $1,000.

You claim the credit on your federal tax return when you file. The IRS does not send you money automatically; you have to report the children on your return and let the tax system calculate the credit. If the credit is larger than the tax you owe, you may receive the difference as a refund, but that depends on rules about how much of the credit is refundable in a given year.

To claim a child, you must be their parent, stepparent, foster parent, or legal guardian. The child must be a U.S. citizen, national, or resident alien, and they must have a valid Social Security number. They also have to be under 17 at the end of the tax year you are filing for, and you must provide more than half their financial support for the year.

Key Takeaways

  • The Child Tax Credit reduces your federal tax bill by up to $2,000 per child under 17, and you claim it when you file your annual tax return.
  • To claim a child, you must be their parent or legal guardian, they must have a Social Security number, and you must pay for more than half their living expenses.
  • If the credit is larger than the tax you owe, part of it may come back to you as a refund, but the refundable portion changes year to year.
  • Your income level can reduce or eliminate the credit if you earn above a certain threshold, which varies depending on your filing status.
  • You report the credit on your federal tax return using IRS Form 1040 and Schedule 8812, or through tax software that walks you through the questions.

Income Limits and How They Affect Your Credit

The Child Tax Credit begins to shrink if your income exceeds a certain level. For the 2024 tax year, the phase-out starts at $400,000 for married couples filing jointly and $200,000 for single filers. Once your income crosses that threshold, the credit drops by $50 for every $1,000 (or fraction of $1,000) you earn above the limit.

This means if you are a single filer earning $210,000, you are $10,000 over the threshold. That $10,000 triggers a $500 reduction in your credit — so instead of $2,000 per child, you would get $1,500 per child. If your income is high enough, the credit can be reduced to zero, though this only happens at much higher income levels.

The income thresholds and the credit amount itself can change from year to year because Congress sets them. Before you file, check the IRS website or your tax software to confirm the current year's limits, because using last year's numbers will give you the wrong answer.

How to Claim the Credit on Your Tax Return

You report the Child Tax Credit on your federal tax return using IRS Form 1040 (the main individual income tax form) and Schedule 8812 if you need to calculate the refundable portion of the credit. However, most people use tax software — such as the IRS Free File options, TurboTax, H&R Block, or TaxAct — which asks you questions about your children and calculates the credit automatically.

When you file, you will need each child's full legal name, date of birth, and Social Security number. You will also need to confirm your relationship to the child (parent, stepparent, foster parent, or guardian) and verify that they lived with you for more than half the year. If you are claiming a foster child, you may need additional documentation, so check with a tax professional if that applies to you.

If you file on paper, you fill in the child information on Schedule 8812 and attach it to your Form 1040. If you use software, you enter the information in the interview section, and the software populates the forms for you. Either way, the IRS matches the Social Security numbers you report against its records, so accuracy matters — a wrong number will delay your refund or trigger a notice.

The Difference Between Refundable and Non-Refundable Credit

Part of the Child Tax Credit is non-refundable, meaning it can only reduce your tax bill to zero — it cannot create a refund. The other part is refundable, meaning if it is larger than the tax you owe, the IRS sends you the difference as a refund.

For the 2024 tax year, up to $1,700 of the $2,000 credit per child is refundable. That means if you owe $500 in federal tax and have one may have access to child, the non-refundable portion ($300) wipes out your tax bill, and the refundable portion ($1,400) comes back to you as a $1,400 refund. The exact refundable amount can shift year to year, so confirm the current rules before you file.

This distinction matters most for families with low income who owe little or no federal tax. Even if you owe zero tax, you may still receive a refund from the refundable portion of the credit, which is why some families get money back even though they did not pay in.

What Happens If You Have Multiple Children

The credit stacks — you claim it for each may have access to child. If you have three children under 17, you can claim up to $6,000 in total credit (three times $2,000), assuming your income does not trigger the phase-out and all three meet the requirements.

Each child must have their own Social Security number and must meet the age, residency, and support requirements separately. You cannot claim the credit for a child who is 17 or older at the end of the tax year, even if they are still in high school. You also cannot claim the same child twice — only one person can claim each child, so if you and the child's other parent are both filing, you need to decide who claims them (usually the parent with primary custody).

If you share custody and cannot agree on who claims the child, the IRS has rules about which parent gets priority — generally, the parent with whom the child lived for the longer part of the year. A tax professional can help you sort this out if it is unclear.

When the Credit Changed: The 2021 Expansion and What Happened After

In 2021, Congress temporarily expanded the Child Tax Credit as part of pandemic relief. The credit increased to $3,000 per child (or $3,600 for children under 6), and the IRS sent monthly payments to families instead of waiting until tax time. That expansion ended after 2021, and the credit returned to $2,000 per child for the 2022 tax year and beyond.

If you received monthly payments in 2021, you may have had to reconcile them when you filed your 2021 tax return — meaning if you received more in payments than you were may have access to to based on your final income, you might have owed some back. This reconciliation happened automatically on your return, and most families did not owe anything because the IRS built in protections.

The credit amount and rules can change again in the future if Congress passes new legislation. Tax software and the IRS website will reflect any changes for the year you are filing, so always check the current rules rather than assuming last year's rules still explore.

Special Situations: Divorced Parents, Adopted Children, and Foster Care

If you are divorced or separated, the parent with primary custody (the one the child lived with for the longer part of the year) generally claims the credit. The other parent can claim it only if the custodial parent signs a written statement releasing the claim — Form 8332 is the IRS form for this. If you are in this situation, keep that form with your records.

If you adopted a child, you can claim the credit once the adoption is finalized and the child has a Social Security number. If the adoption is still pending, you cannot claim the credit yet. For foster children, the same rules explore — they must have a Social Security number and you must provide more than half their support.

If you are a grandparent or other relative raising a child, you can claim the credit if you meet the support and residency tests, even if you are not the legal guardian. The key is that the child lived with you for more than half the year and you paid for more than half their expenses.

Frequently Asked Questions

Can I claim the credit if my child does not have a Social Security number yet?

No. Your child must have a valid Social Security number to claim the credit. If you are expecting a child or recently adopted one, you can explore for a Social Security number at the hospital or through the Social Security Administration. Once you have the number, you can claim the credit on your next tax return.

What if my child turned 17 during the tax year?

You cannot claim the credit for that child. The credit applies only to children under 17 at the end of the tax year. If your child turned 17 on December 31, they do not may have access to; if they turn 17 on January 1 of the following year, they do may have access to for the prior year.

Do I have to file a tax return to get the credit?

Yes, you must file a federal tax return to claim the credit. Even if you have no income or your income is below the filing threshold, filing allows you to receive the refundable portion of the credit. Tax software and the IRS Free File program can help you file at no cost.

What if I claimed the wrong child or made a mistake on my return?

You can file an amended return using Form 1040-X to correct the error. The IRS will recalculate your credit and either send you a refund or bill you for the difference. If the IRS catches the error first, they will send you a notice explaining the change and what you owe or are owed.

Can I claim the credit if the child's other parent claims them on their return?

No. Only one person can claim each child per tax year. If both parents file claiming the same child, the IRS will reject one of the claims (usually the second one filed) and send a notice. You will need to file an amended return or work it out with the other parent and resubmit.