The Child Tax Credit is based on your income, your children's ages, and your tax filing status

The Child Tax Credit reduces the federal income tax you owe, dollar for dollar. You claim it on your tax return when you file. The credit is worth up to $2,000 per child under age 17 as of December 31 of the tax year you're filing for. To receive it, you must be the child's parent or legal guardian, claim them as a dependent on your return, and meet income thresholds that vary by filing status.

The credit phases out — meaning it gets smaller — once your income exceeds certain limits. For 2023 tax returns (filed in 2024), those limits are $400,000 for married couples filing jointly and $200,000 for single filers. The credit reduces by $50 for every $1,000 of income above the threshold. You don't need to be employed to claim it, but you do need to file a tax return.

Key Takeaways

  • You can claim up to $2,000 per child under age 17, but the amount shrinks if your income is above $400,000 (married filing jointly) or $200,000 (single).
  • The child must live with you for more than half the year, have a valid Social Security number, and be claimed as your dependent on your tax return.
  • You claim the credit on Form 1040 or Form 1040-SR when you file your federal tax return; you do not apply separately.
  • If the credit is larger than the tax you owe, you may receive the difference as a refund, but this depends on which version of the credit you're using.

Income limits and how they affect your credit amount

Your filing status determines when the credit begins to phase out. If you're married and filing jointly, the phase-out starts at $400,000 of modified adjusted gross income (MAGI). If you're single, head of household, or may have access to widow(er), it starts at $200,000. If you're married filing separately, it starts at $100,000.

Once your income crosses the threshold, the credit decreases by $50 for every $1,000 (or fraction thereof) above the limit. For example, if you're single with $210,000 in income, you're $10,000 over the $200,000 threshold. That means your credit is reduced by $500 (10 × $50). If you have two children, your maximum credit would be $4,000, reduced to $3,500.

Income thresholds and credit amounts can change year to year. Check the IRS website or your tax software for the current year's limits before you file.

Residency and relationship requirements for each child

The child must be your son, daughter, stepchild, foster child, sibling, or descendant of any of these (such as a niece or nephew). Adopted children count. The child must live with you for more than half the tax year — more than 183 days. Time spent at school, camp, or on vacation still counts as living with you if you maintain the home as the child's principal residence.

The child must be a U.S. citizen, national, or resident alien with a valid Social Security number. You must claim them as a dependent on your return. If another person (such as a grandparent or ex-spouse) claims the child as a dependent, you cannot claim the credit for that child in that year.

The child's age matters: they must be under age 17 as of December 31 of the tax year. A child who turns 17 on December 31 does not count; a child who turns 17 on January 1 of the following year does count for that prior year.

What documents and information you need to file

You will need each child's full legal name and valid Social Security number. Have your own Social Security number or Individual Taxpayer Identification Number (ITIN) ready. You'll also need your filing status, your income for the year, and information about any other dependents you're claiming.

If you're filing by mail, you don't send documents with your return, but keep them in case the IRS asks. If you're filing electronically through tax software or a tax preparer, you enter the information directly. The documents to keep on file include birth certificates, adoption papers, or court orders proving guardianship; proof of the child's Social Security number (a Social Security card or tax return showing the number); and proof of residency, such as school records, medical records, or utility bills showing your address and the child's name.

If you're claiming a foster child, keep documentation of the foster care placement and any court orders. If you're claiming a child you don't have legal custody of, have written proof that the parent has given you permission to claim them.

How to claim the credit on your tax return

You claim the Child Tax Credit on Form 1040 or Form 1040-SR (for taxpayers age 65 and older). The credit appears on Schedule 8812 if you're also claiming the Additional Child Tax Credit (a refundable version of the credit). Most tax software walks you through the questions and fills in the form automatically once you enter your children's information.

If you file by mail, complete Form 1040 and attach Schedule 8812 if you're claiming the refundable portion. Write each child's name and Social Security number in the spaces provided. The IRS will match the Social Security numbers you report against Social Security Administration records, so accuracy is critical.

You can file electronically through the IRS Free File program if your income is below a certain threshold (this threshold changes yearly), through tax software you purchase, or through a tax preparer. Electronic filing is faster and reduces errors.

Refundable versus non-refundable credit: what you actually receive

The Child Tax Credit has two parts: the regular credit and the Additional Child Tax Credit (also called the refundable portion). The regular credit is non-refundable, meaning it can reduce your tax bill to zero but won't give you money back if the credit is larger than what you owe. The Additional Child Tax Credit is refundable, meaning if it's larger than your tax bill, you receive the difference as a refund.

The Additional Child Tax Credit is limited to 15% of your earned income above $2,500, with a maximum of $1,700 per child (as of 2023; this amount changes yearly). You're only may be able to access for the refundable portion if you have earned income — wages, self-employment income, or certain other types of income. If you have no earned income, you can only use the non-refundable credit.

Your tax software or preparer will calculate both amounts and claim whichever is larger. You don't choose between them; the IRS uses the version that benefits you most.

What happens if your income changes or you claim a child incorrectly

If you claim a child and later find out another person also claimed them, the IRS will contact you. Only one person can claim a child per tax year. If there's a dispute, the IRS has procedures to determine who has the right to claim them, usually based on who has primary custody. You may owe back taxes, interest, and penalties if you claimed a child you weren't may have access to to claim.

If your income was lower when you filed but turned out to be higher by the end of the year, you may have to repay part of the credit when you file your next return. If your income was higher than you expected, you might not receive the full credit. These adjustments happen automatically when you file.

If you received an advance payment of the Child Tax Credit (the IRS sent you money in 2021 based on 2020 income), you'll reconcile that payment on your 2021 tax return. The IRS will compare what you received to what you were actually owed and adjust your refund or bill accordingly.

Frequently Asked Questions

Can I claim the credit if the child doesn't live with me the whole year?

The child must live with you for more than half the year — at least 184 days. If the child was born partway through the year, count from the birth date. If the child moved in or out, count the actual days. Time at school or camp counts as living with you if your home is their principal residence.

What if I don't have a Social Security number for the child yet?

You cannot claim the credit without a valid Social Security number for the child. If you're expecting a child, you can apply for a Social Security number at the hospital after birth or at your local Social Security office. If you've adopted a child, apply for a Social Security number before filing your return. You can file an amended return once you have the number.

Do I lose the credit if I'm behind on child support?

Yes. If you owe past-due child support, the IRS can offset your refund to pay it. This means you won't receive the refundable portion of the credit. The non-refundable credit can still reduce your tax bill, but any refund will go to child support arrears first.

Can my ex-spouse and I both claim the credit for the same child?

No. Only one person can claim a child per tax year. If you share custody, you need to agree on who claims the child, or the IRS will apply tiebreaker rules (usually the parent with primary custody). If you disagree, the IRS may deny the credit to both of you until the dispute is resolved.

What if I'm not a U.S. citizen but have an ITIN?

You can claim the credit if you have an ITIN and meet all other requirements. Your children must still have valid Social Security numbers. File your return using your ITIN, and the credit will be calculated the same way as for citizens.