The Child Tax Credit amount depends on your income and how many children you claim

The Child Tax Credit is a reduction in the federal income tax you owe, not a refund. For the 2024 tax year, the credit is $2,000 per child under age 17. The amount you actually receive depends on your household income and tax situation.

If your income is below certain thresholds, you may receive part of the credit as a refund even if you owe no tax. This refundable portion is called the Additional Child Tax Credit or the Refundable Child Tax Credit, and it can be up to $1,700 per child for 2024. The exact amount phases out as your income rises.

The income thresholds where the credit begins to reduce are $400,000 for married couples filing jointly and $200,000 for single filers. For every $1,000 (or fraction of $1,000) your income exceeds these limits, the credit decreases by $50.

Key Takeaways

  • The full Child Tax Credit is $2,000 per may have access to child under age 17 for the 2024 tax year.
  • The refundable portion of the credit can be up to $1,700 per child if your income is low enough, meaning you may receive money back even if you owe no tax.
  • The credit phases out by $50 for every $1,000 your income exceeds $400,000 (married filing jointly) or $200,000 (single filers).
  • You must have a valid Social Security number for each child and claim them as dependents on your tax return to receive the credit.

Who qualifies as a child for the credit

Your child must be under age 17 at the end of the tax year to count toward the $2,000 credit. The child must also be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these (such as a niece or nephew), and you must claim them as a dependent on your return.

The child must be a U.S. citizen, national, or resident alien with a valid Social Security number. They must also have lived with you for more than half the tax year. If you and another person both claim the same child, the IRS will generally award the credit to whoever has the higher adjusted gross income.

How the refundable portion works

The refundable part of the Child Tax Credit—up to $1,700 per child for 2024—means you can receive money back even if you owe zero federal income tax. This is different from a non-refundable credit, which can only reduce your tax bill to zero.

The refundable amount is limited to 15 percent of your earned income above $2,500. For example, if you earned $20,000 and have one may have access to child, your refundable credit would be limited to 15 percent of $17,500 ($20,000 minus $2,500), which equals $2,625. Since the maximum refundable credit is $1,700 per child, you would receive $1,700.

If your income is very low, you may not reach the $2,500 threshold, which means you would receive no refundable credit that year. The IRS calculates this automatically when you file your return.

Income phase-out and how it reduces your credit

Once your modified adjusted gross income (MAGI) exceeds the threshold for your filing status, the credit begins to shrink. For 2024, the thresholds are $400,000 for married couples filing jointly, $200,000 for single filers, and $200,000 for heads of household.

The credit decreases by $50 for every $1,000 (or any part of $1,000) your income exceeds the threshold. If your income is $400,050 and you are married filing jointly, you have exceeded the limit by $50. Since this is less than $1,000, the credit reduces by $50, meaning you would receive $1,950 per child instead of $2,000.

If your income is $401,000 as a married filer, you have exceeded the limit by $1,000, so the credit reduces by $50. If your income is $401,001, the credit still reduces by $50 because the IRS rounds up any fraction of $1,000.

Claiming the credit on your tax return

You claim the Child Tax Credit on Form 1040 (the main individual income tax form) or Form 1040-SR if you are age 65 or older. The credit appears on line 19 of the 2024 Form 1040. You will need the child's full name, date of birth, and Social Security number.

If you are claiming the refundable portion, you may also need to complete Schedule 8812 (Credits for may have access to Children and Other Dependents). This schedule calculates how much of your credit is refundable based on your earned income. Many tax software programs fill this out automatically.

You can claim the credit whether you file on paper or electronically. If you file electronically, the software will prompt you to enter your children's information and calculate the credit for you.

Changes from previous years

The $2,000 per-child amount has been in place since 2018. Before that, the credit was $1,000 per child. The income thresholds and phase-out rates have remained the same since 2018 as well, though they are not adjusted for inflation each year.

In 2021 and 2022, Congress temporarily increased the refundable portion of the credit and allowed monthly advance payments to families. Those changes ended after 2022, and the credit returned to the standard rules for the 2023 tax year and beyond.

What happens if you receive advance payments

Some families received advance Child Tax Credit payments in 2021 and 2022 through the IRS's monthly payment program. If you received those payments, the amount was subtracted from your total credit when you filed your 2021 or 2022 tax return.

For 2024, there is no advance payment program. You will receive the full credit amount when you file your tax return, either as a reduction in the tax you owe or as a refund if the refundable portion exceeds your tax liability.

Frequently Asked Questions

Can I claim the Child Tax Credit if I am not the child's biological parent?

Yes, if you are a stepparent, foster parent, or legal guardian and the child lived with you for more than half the year and you claim them as a dependent, you can claim the credit. The child must have a valid Social Security number and meet all other requirements.

What if my child turns 17 during the tax year?

If your child turns 17 on any day during the tax year, they do not count for the $2,000 Child Tax Credit. However, they may count for the Credit for Other Dependents, which is $500 per dependent. You would claim this on the same form.

Do I lose the credit if my income is too high?

The credit does not disappear entirely due to high income. It phases out gradually—$50 for every $1,000 your income exceeds the threshold. Even at very high incomes, you may still receive part of the credit, though eventually it reaches zero.

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

No. The child must live with you for more than half the tax year. If you and another person share custody, only the person who meets the "more than half the year" test can claim the credit, unless you and the other parent agree to let the non-custodial parent claim it.

What if I made a mistake claiming the credit on a previous year's return?

You can file an amended return using Form 1040-X to correct the error. The IRS will recalculate the credit and either send you a refund or bill you for additional tax owed. You generally have three years from the original filing date to amend your return.