What the Child Tax Credit actually pays you

The Child Tax Credit is a reduction in the federal income tax you owe, worth up to $2,000 per child under age 17. The IRS sends this money to you, usually as a refund, rather than reducing taxes you pay during the year. You claim it when you file your tax return, and if the credit is larger than the tax you owe, the IRS pays you the difference — this is called a refundable credit.

The amount you receive depends on your household income. If your income is below certain thresholds, you get the full $2,000 per child. Once your income exceeds those thresholds, the credit begins to shrink by $50 for every $1,000 (or fraction of $1,000) your income goes over the limit. The income thresholds are $400,000 for married couples filing jointly and $200,000 for single filers.

You must have a valid Social Security number for each child you claim, and the child must be your dependent. The child can be your biological child, stepchild, adopted child, or a relative you care for — but 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 receive any amount over what you owe as a refund.
  • You claim the credit on your tax return by listing each child's name and Social Security number on Form 1040 or a tax software form.
  • Your income determines the full amount: the credit starts to shrink if you earn over $400,000 (married filing jointly) or $200,000 (single).
  • The child must be under 17 at the end of the tax year, be your dependent, and have a valid Social Security number.
  • If you received advance payments of the credit in 2021 or 2022, you will reconcile those payments when you file your return.

Who can claim the Child Tax Credit

You can claim the credit for any child who meets four requirements: the child must be under age 17 on December 31 of the tax year, have a valid Social Security number, be your dependent, and live with you for more than half the year. A dependent means you provide more than half their financial support — food, housing, medical care, education, and similar costs.

The child does not have to be your biological child. You can claim the credit for a stepchild, adopted child, foster child, or a relative such as a grandchild, niece, or nephew if you meet the residency and support requirements. However, only one person can claim each child. If parents are divorced or separated, the parent with primary custody usually has the right to claim the child, though this can be transferred by written agreement.

You must be a U.S. citizen, national, or resident alien to claim the credit. Your Social Security number and the child's Social Security number must both be valid and issued by the Social Security Administration — an Individual Taxpayer Identification Number (ITIN) does not count for the child.

How to claim the credit on your tax return

When you file your federal tax return, you list each child's name, date of birth, and Social Security number on Form 1040 (the main individual tax form) or in the equivalent section if you use tax software. The IRS uses this information to calculate your credit automatically. You do not need to file a separate form — the credit appears as part of your main return.

If you use tax software (such as TurboTax, H&R Block, or free options through the IRS Free File program), the software will ask you questions about each child and calculate the credit for you. If you file by paper, you write the child's information directly on Form 1040 in the section labeled "Credits." If you work with a tax preparer or accountant, they will gather this information from you and include it in your return.

You must file your return by the deadline — usually April 15 — to claim the credit for that tax year. If you miss the deadline, you can still file a late return to claim the credit, but the IRS will not pay interest on the refund.

Advance payments and reconciliation

In 2021 and 2022, the IRS sent advance payments of the Child Tax Credit directly to families each month, rather than waiting for tax filing. If you received these payments, you will need to reconcile them when you file your return — meaning you report how much you received and the IRS adjusts your final credit amount based on your actual income and household situation.

Reconciliation happens automatically when you file. You report the total advance payments you received (the IRS sends you a notice with this amount), and the tax software or tax preparer includes this in your return calculation. If you received more in advance than you were may have access to to based on your final income, you may owe some money back — though the IRS has limits on how much lower-income households have to repay. If you received less than you were may have access to to, the difference will be part of your refund.

If you did not receive advance payments but think you should have, or if you received payments for a child who no longer qualifies, you can still claim the full credit you are may have access to to on your tax return. The reconciliation process corrects any errors from the advance payment period.

Income limits and how they affect your credit

Your household income determines whether you receive the full $2,000 credit per child or a reduced amount. The income thresholds are $400,000 for married couples filing a joint return and $200,000 for single filers, heads of household, and married individuals filing separately. Income includes wages, self-employment income, investment income, and other sources reported on your tax return.

If your income exceeds the threshold, the credit reduces by $50 for every $1,000 of income over the limit (or any part of $1,000). For example, if you are a single filer with income of $210,000, you are $10,000 over the $200,000 threshold. The credit reduces by $500 (10 × $50), so your credit would be $1,500 per child instead of $2,000.

The income calculation uses your modified adjusted gross income (MAGI), which is your adjusted gross income with certain items added back. For most households, MAGI is the same as adjusted gross income. Your tax software or preparer will calculate this automatically — you do not need to do it by hand.

What documents you need to have on hand

You do not submit documents with your tax return, but you must have them available in case the IRS asks questions later. Keep the following records: the child's birth certificate or other proof of age, the child's Social Security card or a document showing their Social Security number, proof of your relationship to the child (such as a birth certificate, adoption papers, or court documents), and records showing the child lived with you for more than half the year.

For proof of residency, you can use school records, medical records, lease agreements, utility bills, or similar documents dated during the year. If the child was born or died during the year, keep hospital records or a death certificate. If you are claiming a stepchild or relative, keep documents that establish your legal relationship.

The IRS does not require you to mail these documents with your return, but keep them in a safe place for at least three years. If the IRS contacts you about your return, you will need to provide these documents to verify your claim.

Other credits and deductions for children

The Child Tax Credit is separate from other tax breaks for families. The Child and Dependent Care Credit covers costs of childcare or daycare so you can work — it is worth up to $3,000 in care costs per child and reduces your tax by up to $1,050 per child, depending on your income. You cannot claim both credits for the same child in the same year.

The Earned Income Tax Credit (EITC) is a separate credit for lower-income working families. You can claim both the Child Tax Credit and the EITC in the same year if you meet the requirements for both. The EITC is worth more for families with children, and the amount depends on your income and number of children.

You can also claim a dependent exemption for each child on your return, though this is different from the Child Tax Credit. The dependent exemption reduces your taxable income, while the credit directly reduces your tax bill. Tax software and tax preparers handle both automatically.

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 your child was born late in the year and does not yet have a number, you can file your return and claim the credit once the number arrives — file an amended return (Form 1040-X) or contact the IRS to add the child to your account. If you are adopting a child from another country, you can use an ITIN temporarily, but you must obtain a Social Security number to claim the credit.

What if the child's other parent claims them instead of me?

Only one person can claim each child per tax year. If both parents file returns claiming the same child, the IRS will contact both of you. The parent with primary custody usually has the right to claim the child, but this can be transferred by a written agreement. If you and the other parent cannot agree, the IRS will disallow one of the claims and may assess penalties.

Do I lose the credit if my child turns 17 during the year?

The child's age on December 31 of the tax year is what matters. If your child turns 17 on December 31, you can still claim the credit for that year. If they turn 17 on January 1 or any date before December 31, you cannot claim the credit for that year — but you may be able to claim the Credit for Other Dependents, which is worth $500 per dependent.

What happens if I claimed the wrong amount of advance payments?

When you file your tax return, you report the total advance payments you received. The IRS compares this to what you were actually may have access to to based on your income and household situation. If you received too much, you may owe money back, but there are limits on repayment for lower-income households. If you received too little, the difference will be added to your refund.

Can I claim the credit if I am not a U.S. citizen?

You must be a U.S. citizen, national, or resident alien to claim the credit. If you have a valid Social Security number and file a tax return, you likely meet this requirement. If you are unsure about your status, contact the IRS or a tax professional before filing.