The 2024 Child Tax Credit is up to $2,000 per child under 17

For the 2024 tax year, the Child Tax Credit remains $2,000 for each child under age 17 at the end of the year. This is the same amount that has been in place since 2018. The credit reduces the federal income tax you owe, and if the credit is larger than your tax bill, you may receive a refund for the difference.

The credit phases out — meaning it gets smaller — once your income reaches certain thresholds. For single filers, the phase-out begins at $400,000 of modified adjusted gross income. For married couples filing jointly, it begins at $800,000. For each $1,000 (or fraction of $1,000) over these limits, the credit decreases by $50.

You claim the credit on your federal tax return using Form 1040 and Schedule 8812. The IRS uses the information you provide to calculate whether you are may have access to to the full amount, a reduced amount, or none at all.

Key Takeaways

  • The 2024 Child Tax Credit is $2,000 per child under age 17, claimed on your federal tax return.
  • The credit begins to reduce if your income exceeds $400,000 (single) or $800,000 (married filing jointly).
  • You must have a valid Social Security number for each child to claim the credit.
  • If the credit exceeds your tax bill, the excess may be refunded to you as a refund up to $1,700 per child (the refundable portion).

Income limits and how the credit phases out

The phase-out thresholds differ based on your filing status. If you file as single or head of household, the credit starts to reduce at $400,000 of modified adjusted gross income. If you file as married filing jointly, the threshold is $800,000. Married filing separately filers have a $400,000 threshold.

Once your income exceeds the threshold for your filing status, the credit decreases by $50 for every $1,000 (or part of $1,000) over the limit. For example, if you are single with $401,000 in income, your credit would be reduced by $50. If your income is $402,500, the reduction would be $100.

This phase-out can significantly reduce or eliminate the credit for higher-income households. You can calculate the reduction using the worksheet in the instructions for Form 1040, or a tax professional can do this for you.

Who can claim the credit and what children count

To claim a child on the 2024 Child Tax Credit, 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 2024, a U.S. citizen, national, or resident alien, and have a valid Social Security number.

The child must also have lived with you for more than half of 2024. Temporary absences for school, medical care, military service, or detention do not count as time away from your home. If the child was born or died during 2024, they still count as long as they lived with you for the required time.

You must also claim the child as a dependent on your tax return. If another person (such as a former spouse) claims the child as a dependent, you cannot claim the credit for that child, even if you paid for their care.

The refundable and non-refundable portions

The Child Tax Credit has two parts: a non-refundable portion and a refundable portion. The non-refundable portion reduces your federal income tax bill dollar-for-dollar, up to the amount of tax you owe. If you owe no federal income tax, the non-refundable portion provides no benefit.

The refundable portion — called the Additional Child Tax Credit — can result in a refund even if you owe no tax. For 2024, up to $1,700 per child can be refunded to you. This refundable amount is limited to 15 percent of your earned income over $2,500. If your earned income is low, the refundable portion may be less than $1,700 per child.

For example, if you have one child, owe $500 in federal tax, and are may have access to to the full $2,000 credit, the first $500 reduces your tax bill to zero. The remaining $1,500 could potentially be refunded to you, but only up to the $1,700 refundable limit and only if your earned income supports it.

How to claim the credit on your tax return

You claim the Child Tax Credit on Form 1040 (U.S. Individual Income Tax Return). You will need the child's full name and valid Social Security number. Enter this information in the section of Form 1040 that asks for dependents.

If you are claiming the refundable portion (Additional Child Tax Credit), you must also complete Schedule 8812. This schedule calculates how much of the credit can be refunded based on your earned income and other factors. The IRS instructions for Form 1040 include a worksheet to help you determine if you need to file Schedule 8812.

If you use tax preparation software or work with a tax professional, they will guide you through entering the required information and will calculate the credit amount automatically based on your income and the number of may have access to children.

Changes from prior years and what stayed the same

The $2,000 per-child amount has remained unchanged since 2018. Before that, the credit was $1,000 per child. The phase-out thresholds ($400,000 for single filers and $800,000 for married filing jointly) have also stayed the same since 2018.

The refundable portion (Additional Child Tax Credit) was temporarily expanded in 2021 to $3,600 per child under age 6 and $3,000 per child ages 6 to 16, and some of it was paid in advance during 2021. That expansion ended after 2021, and the refundable limit returned to $1,700 per child for 2022 and beyond.

The income thresholds and credit amounts can change in future years if Congress passes new legislation. You can check the IRS website each tax year for updates to the credit rules.

Frequently Asked Questions

What if my child was born in December 2024?

Your child counts for the 2024 Child Tax Credit as long as they were born by December 31, 2024, and lived with you for the required time (which may be very brief for a December birth). You will need their Social Security number to claim the credit. If you do not yet have the number, you can file your return using a temporary number and update it later.

Can I claim the credit if I do not owe federal income tax?

Yes. Even if you owe no federal tax, you may receive a refund through the refundable portion of the credit (Additional Child Tax Credit), up to $1,700 per child. The amount depends on your earned income. You must file a tax return to claim this refund.

What happens if two parents both want to claim the same child?

Only one person can claim a child as a dependent on their tax return. If both parents file returns claiming the same child, the IRS will disallow one of the claims. If you and the other parent cannot agree, the IRS has rules about which parent can claim the child, usually based on custody and support.

Does the credit apply if my child has a Social Security number but is not a U.S. citizen?

The child must be a U.S. citizen, national, or resident alien to count for the credit. A valid Social Security number alone is not enough. Resident alien status is determined by immigration law and IRS rules. If you are unsure of your child's status, consult a tax professional or the IRS.

What if my income is above the phase-out threshold?

Your credit will be reduced by $50 for each $1,000 (or part of $1,000) your income exceeds the threshold for your filing status. You can use the worksheet in the Form 1040 instructions to calculate the reduction, or a tax professional can do this for you. You may still receive some credit even at higher income levels.