The Child Tax Credit in 2024

The Child Tax Credit is a federal tax reduction worth up to $2,000 per child under age 17. You claim it when you file your tax return, and it reduces the federal income tax you owe dollar-for-dollar. If the credit is larger than your tax bill, you may receive the difference as a refund, depending on which version of the credit applies to you.

The amount and rules depend on your household income and filing status. For the 2024 tax year (filed in 2025), the credit remains at $2,000 per may have access to child, though Congress has not extended the expanded amounts that existed in 2021. The credit phases out at higher income levels: it begins to shrink once your modified adjusted gross income exceeds $400,000 for married couples filing jointly, or $200,000 for single filers.

Key Takeaways

  • The Child Tax Credit reduces your federal tax bill by up to $2,000 for each child under 17 who meets the relationship, citizenship, and residency requirements.
  • You must have a valid Social Security number for each child you claim, and the child must live with you for more than half the year.
  • The credit begins to phase out when your income exceeds $400,000 (married filing jointly) or $200,000 (single), shrinking by $50 for each $1,000 over the threshold.
  • The refundable portion of the credit (the part you can receive as a refund if it exceeds your tax bill) is limited to $1,700 per child for 2024.

Who Can Claim the Child Tax Credit

To claim a child, you must be the parent, stepparent, foster parent, or legal guardian. The child must be your son, daughter, stepchild, foster child, sibling, or descendant of any of these. Adopted children count the same as biological children.

The child must be under age 17 at the end of the tax year, a U.S. citizen, national, or resident alien, and live with you for more than half the year. You must also provide their valid Social Security number on your return. If you and another person both meet the requirements (such as in a custody situation), only one of you can claim the credit for that child in a given year.

How the Income Phase-Out Works

The credit does not disappear all at once when you earn more money. Instead, it shrinks gradually. For 2024, the phase-out begins at $400,000 of modified adjusted gross income for married couples filing jointly and $200,000 for single filers, heads of household, and married filing separately.

For every $1,000 (or fraction of $1,000) your income exceeds the threshold, the credit reduces by $50. If you are married filing jointly and earn $410,000, your income is $10,000 over the threshold, so your credit shrinks by $500 total. This means a family with two children could lose $1,000 of the $4,000 credit at that income level.

Refundable vs. Non-Refundable Portions

Part of the Child Tax Credit is refundable, meaning you can receive it as a refund even if you owe no federal income tax. For 2024, up to $1,700 per child is refundable. The remaining $300 per child (up to the $2,000 total) is non-refundable, so it can only reduce your tax bill to zero but cannot generate a refund.

The refundable portion is sometimes called the Additional Child Tax Credit or ACTC. To receive the refundable amount, your earned income (wages, self-employment income, or certain other sources) must be at least $2,500 for the year. If you have no earned income, you cannot claim the refundable portion, though you may still claim the non-refundable $300 per child if you have tax to pay.

How to Claim the Credit on Your Tax Return

You claim the Child Tax Credit by filing a federal income tax return, even if your income is below the filing threshold. Most people use Form 1040 along with Schedule 8812 if they want to claim the refundable portion. If you use tax software, it will walk you through the questions and calculate the credit automatically.

You will need each child's full name, date of birth, and Social Security number. You will also need your filing status, household income, and the number of may have access to children. The IRS matches the Social Security numbers you provide against its records, so accuracy is important; mismatched numbers can delay your refund or trigger a notice.

Changes to Watch For

The Child Tax Credit has changed several times in recent years. In 2021 and 2022, Congress expanded it to $3,600 per child under age 6 and $3,000 per child ages 6 to 17, and made the full amount refundable. That expansion ended after 2022, and the credit returned to $2,000 per child with the $1,700 refundable limit for 2023 and 2024.

Congress has proposed various changes for future years, but none have been enacted into law yet. If you are planning your finances or estimating your tax bill, use the current $2,000 amount unless Congress passes new legislation. The IRS website and your tax software will reflect any changes for the year you are filing.

Frequently Asked Questions

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

The child must live with you for more than half the year. If you share custody and the child lives with you for exactly half the year, you cannot claim the credit. In a custody situation, the parent with primary custody usually claims the credit, but the other parent can claim it if the primary parent signs a form releasing the right to claim.

What if I do not have a Social Security number for my child yet?

You cannot claim the credit without a valid Social Security number for each child. If you are waiting for a number to arrive, you can file your return without claiming the child, then file an amended return once the number arrives. Alternatively, you can delay filing until the number is in hand.

Does the credit reduce my income for other tax purposes?

No. The Child Tax Credit reduces your tax bill, not your reported income. It does not affect your may be able to access for other programs that are based on income, such as the Earned Income Tax Credit or need-based financial aid.

What happens if I claim a child and the IRS says the Social Security number does not match?

The IRS will send you a notice asking you to verify the child's information. You will need to respond with documentation such as a birth certificate. If you cannot verify the child, the credit will be disallowed and you may owe additional tax plus interest.