The Child Tax Credit Amount for 2024

The Child Tax Credit is worth up to $2,000 per child under age 17 for the 2024 tax year. The exact amount you receive depends on your income level and filing status. If your income is below the threshold for your situation, you get the full $2,000 per may have access to child. Once your income crosses that threshold, the credit begins to reduce by $50 for every $1,000 (or fraction of $1,000) over the limit.

The income thresholds where the credit starts to phase out are $400,000 for married couples filing jointly and $200,000 for all other filers. These thresholds have remained the same since 2018. The credit can reduce your tax bill dollar-for-dollar, and you may receive a refund if the credit is larger than the taxes you owe.

Key Takeaways

  • The Child Tax Credit is $2,000 per child under age 17 for the 2024 tax year, but the amount shrinks if your income exceeds $400,000 (married filing jointly) or $200,000 (other filers).
  • A child must be a U.S. citizen, national, or resident alien with a valid Social Security number to count toward the credit.
  • The credit reduces your federal income tax dollar-for-dollar and may result in a refund if it exceeds your total tax liability.
  • Part of the credit may be refundable, meaning you could receive money back even if you owe no taxes, up to a limit set by law.

Income Limits and How the Credit Phases Out

Your income determines whether you receive the full $2,000 per child or a reduced amount. If you file as married filing jointly and your modified adjusted gross income (MAGI) is $400,000 or less, you get the full credit. If you file as single, head of household, or may have access to widow(er), the threshold is $200,000. Married filing separately filers have a $200,000 threshold as well.

Once your income exceeds these thresholds, the credit decreases. For every $1,000 over the limit (or any part of $1,000), the credit drops by $50 per child. For example, if you are single with one child and earn $201,000, you are $1,000 over the $200,000 threshold, so your $2,000 credit reduces to $1,950. If you earn $201,500, the credit reduces by $100 (rounding up the $500 overage to $1,000), bringing it to $1,900.

Who Counts as a may have access to Child

To claim the Child Tax Credit, a child must meet several requirements. The child must be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these (such as a grandchild or niece). The child must be under age 17 at the end of the tax year, a U.S. citizen, national, or resident alien, and have a valid Social Security number.

The child must also live with you for more than half the tax year and be claimed as a dependent on your return. If the child has income from a job or investments, there are limits on how much they can earn, though these limits are high for most families. You cannot claim the credit for yourself or another adult, even if they live with you and you support them.

Refundable vs. Nonrefundable Portions

Part of the Child Tax Credit is refundable, which means you can receive money back even if you owe no federal income tax. For 2024, up to $1,700 per child is refundable through the Additional Child Tax Credit. The remaining $300 per child is nonrefundable, meaning it can only reduce your tax bill to zero but cannot create a refund.

The refundable portion is limited by your earned income. You must have at least $2,500 in earned income (from wages, self-employment, or similar sources) to claim any refundable portion of the credit. If your earned income is lower, the refundable amount shrinks. This rule prevents people with very low earned income from receiving the full refundable credit.

How to Claim the Child Tax Credit on Your Tax Return

You claim the Child Tax Credit when you file your federal income tax return using Form 1040. You will need to list each may have access to child's name, date of birth, and Social Security number on the form. The IRS matches this information against Social Security Administration records, so make sure the names and numbers are correct.

If you use tax preparation software, the program will walk you through questions about your children and calculate the credit automatically. If you file by mail, you complete the relevant lines on Form 1040 and attach any required schedules. Many people use a tax professional to file, and they will handle the credit calculation as part of preparing your return.

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 refundable portion (the Additional Child Tax Credit) has also remained at $1,700 since 2021. These amounts do not adjust for inflation each year, so they stay the same unless Congress passes new legislation.

In 2021 and 2022, the refundable portion was temporarily increased to $1,800 per child as part of pandemic relief measures, but it returned to $1,700 for 2023 and remains there for 2024. The income thresholds where the credit begins to phase out have not changed since 2018 either. It is worth checking the IRS website or a tax professional each year to confirm the current amounts, as Congress can change tax law.

Frequently Asked Questions

Can I claim the Child Tax Credit if my child was born on December 31?

Yes. A child only needs to be under age 17 at the end of the tax year, which means a child born on December 31 still counts for that year. The child's age is measured on December 31 of the tax year you are filing for, not on the date you file your return.

What if my child does not have a Social Security number yet?

You cannot claim the credit without a valid Social Security number for each child. If your child was born late in the year and you have not yet received their number, you may be able to file your return and amend it later once the number arrives. Some tax software will let you file with an ITIN (Individual Taxpayer Identification Number) temporarily, but the IRS will ultimately require an SSN.

Do I lose the entire credit if my income is slightly over the threshold?

No. The credit phases out gradually. You only lose $50 for every $1,000 (or part of $1,000) over the threshold. Even if your income is $50,000 over the limit, you would still receive a significant portion of the credit. Only very high earners lose the entire credit.

Can I claim the credit if my child lives with their other parent part of the year?

The child must live with you for more than half the tax year. If the child lives with each parent equally, the parent with the higher adjusted gross income can claim the credit, unless both parents agree otherwise. You will need documentation showing where the child lived and for how long.

What happens if I claim a child who is not actually my dependent?

The IRS will deny the credit and may impose penalties if you knowingly claim a child you are not may have access to to claim. The IRS matches child information against Social Security records and cross-checks returns. If two people claim the same child, the IRS will investigate and disallow the credit for at least one of you.