The Child Tax Credit amount depends on the tax year and your income

For the 2024 tax year (filed in 2025), the Child Tax Credit is $2,000 per child under age 17. This is the amount you can subtract from the federal income tax you owe. The credit does not change based on how many children you have — each child under 17 counts as a separate $2,000 credit.

The credit begins to shrink if your income exceeds certain thresholds. For single filers, the credit starts to reduce at $400,000 of income. For married couples filing jointly, it starts to reduce at $800,000. For each $1,000 (or fraction of $1,000) over the threshold, the credit decreases by $50.

These amounts have been the same since 2018. Congress set them to expire after 2025, which means the credit is scheduled to drop to $1,000 per child starting in 2026 unless new legislation extends the current amount. You should plan based on what is law now, not on what might change.

Key Takeaways

  • The Child Tax Credit is $2,000 per child under age 17 for tax years 2024 and 2025.
  • The credit reduces by $50 for every $1,000 of income above $400,000 (single) or $800,000 (married filing jointly).
  • A child must have a valid Social Security number and be claimed as your dependent to count toward the credit.
  • The credit is scheduled to drop to $1,000 per child in 2026 unless Congress changes the law.

Who can claim the Child Tax Credit

You can claim the credit for each child who meets three requirements: the child must be under age 17 at the end of the tax year, you must claim them as a dependent on your return, and they must have a valid Social Security number issued by the Social Security Administration.

The child does not have to live with you the entire year, but you must provide more than half their financial support during the year. If you share custody, the parent who claims the child as a dependent gets the credit. If you and the other parent cannot agree, the IRS has rules based on who has custody the majority of the year.

You do not have to be a U.S. citizen to claim the credit, but you must have a valid Social Security number or Individual Taxpayer Identification Number (ITIN). Your spouse, if you file jointly, must also have a valid number.

How the credit reduces your tax bill

The Child Tax Credit is a refundable credit, which means it can reduce your tax bill below zero. If the credit is larger than the tax you owe, the IRS sends you the difference as a refund. This is different from a deduction, which only reduces the income that gets taxed.

For example, if you owe $1,200 in federal income tax and you have one child, the $2,000 credit wipes out the $1,200 and leaves you with an $800 refund. If you have two children, the $4,000 credit would give you a $2,800 refund.

The refundable portion is capped at $1,700 per child for 2024 and 2025. This means if your tax bill is zero and you have no other credits, the IRS will refund up to $1,700 per child. Any credit amount above $1,700 per child does not result in a refund — it simply disappears.

Income thresholds and how the credit shrinks

Your income determines whether you get the full $2,000 per child or a reduced amount. The IRS uses your modified adjusted gross income (MAGI) to calculate this, which is usually your adjusted gross income from your tax return.

If you are single and your MAGI is $400,000 or less, you get the full credit. If your MAGI is $400,001 to $401,000, the credit reduces by $50. If your MAGI is $401,001 to $402,000, it reduces by $100. The pattern continues: for every $1,000 over the threshold (including any partial $1,000), subtract $50 from the credit per child.

If you are married filing jointly, the threshold is $800,000. The same $50-per-$1,000 reduction applies. If you are married filing separately, the threshold is $400,000 for each spouse.

What changed in recent years and what is coming

The $2,000 per-child amount has been in place since 2018. Before that, the credit was $1,000 per child. The American Rescue Plan temporarily increased the refundable portion to $1,800 per child for 2021 only, and some families received advance payments in 2021.

Starting in 2026, the credit is scheduled to return to $1,000 per child unless Congress passes new legislation. The income thresholds may also change. Because tax law can shift, you should check the IRS website or speak with a tax preparer closer to when you file to confirm the current year's amounts.

How to claim the credit on your tax return

You claim the Child Tax Credit on Form 1040 (the main federal income tax form) or through tax software. You will need to list each child's name, date of birth, and Social Security number. The IRS matches this information against Social Security Administration records, so the number must be correct and issued to that specific child.

If you file electronically, the software will calculate the credit for you based on your income and the number of children. If you file on paper, you use the Child Tax Credit Worksheet in the Form 1040 instructions to calculate the amount yourself. Many people use a tax preparer or free tax software to avoid calculation errors.

You must file a federal income tax return to claim the credit, even if your income is low enough that you would not normally have to file. If you have children and your income is above zero, filing usually results in a refund because of the credit.

Frequently Asked Questions

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

Yes, if you provide more than half the child's financial support during the year and claim them as a dependent. The child does not have to live with you the entire year. However, if another parent also claims the child, only one of you can claim the credit — the IRS will reject the duplicate claim.

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

You cannot claim the credit without a valid Social Security number for the child. If you are expecting a number soon, you can file your return without the child listed, then file an amended return once you have the number. Some tax software allows you to add the child later in the same tax year.

Does the credit change if I have a new baby during the year?

Yes. A child born in December counts for the full $2,000 credit for that tax year. You will need the child's Social Security number to claim it. If the baby was born in the current year and does not have a number yet, you may need to file an amended return once the number arrives.

What happens if I claim the credit and the IRS says my child's number is wrong?

The IRS will reject your return and ask you to correct the Social Security number. Double-check the number on the child's Social Security card or statement. If the number is correct but the IRS still rejects it, contact the Social Security Administration to verify the number is active and matches the child's name and date of birth.

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

You can claim the credit if you have a valid Social Security number or ITIN and meet all other requirements. Your spouse, if filing jointly, must also have a valid number. The child must have a Social Security number (not an ITIN). Consult a tax preparer familiar with ITIN filers to ensure your return is filed correctly.