What the Child Tax Credit is

The Child Tax Credit is a reduction in the federal income tax you owe, based on how many children you support. The IRS gives you a dollar amount for each child who meets the requirements, and you subtract that amount from your tax bill. If the credit is larger than the tax you owe, you may receive money back — this is called a refund.

The credit is not a deduction (which lowers your income before tax is calculated). It directly reduces what you pay. For the 2024 tax year, the credit is $2,000 per child under age 17. The amount you receive depends on your income, filing status, and the number of children in your household.

Key Takeaways

  • The Child Tax Credit reduces your federal tax bill by up to $2,000 per child under age 17 for the 2024 tax year.
  • You must have a valid Social Security number for each child, a signed tax return, and income below certain thresholds to claim the full credit.
  • If you have no tax bill or a small one, you may still receive money back through the refundable portion of the credit, up to $1,700 per child in 2024.
  • You report the credit on your federal tax return (Form 1040) using Schedule 8812 if you are claiming the refundable portion.

Income limits and phase-out rules

The full $2,000 credit is available if your modified adjusted gross income (MAGI) is below a certain threshold. For the 2024 tax year, that threshold is $400,000 for married couples filing jointly and $200,000 for single filers and heads of household. If your income exceeds these amounts, the credit begins to reduce by $50 for every $1,000 (or fraction thereof) over the limit.

This means if you earn $1 above the threshold, you lose $50 of the credit. The reduction continues until the credit reaches zero. Your tax preparer or tax software will calculate this automatically, but you should know the threshold applies to your filing status.

Who can claim the credit

To claim the Child Tax Credit, you must be the parent, legal guardian, or relative who provides more than half the child's financial support for the year. The child must be your son, daughter, stepchild, foster child, sibling, or descendant of any of these (such as a grandchild or niece). The child must live with you for more than half the year and be a U.S. citizen, national, or resident alien.

The child must be under age 17 on December 31 of the tax year you are claiming the credit. If the child turns 17 on that date, they do not count. You cannot claim the credit for yourself or for a child who is claimed as a dependent on someone else's return.

Each child must have a valid Social Security number. If a child does not have a number or has an Individual Taxpayer Identification Number (ITIN) instead, you cannot claim the credit for that child.

Refundable vs. non-refundable portions

Part of the Child Tax Credit is refundable, meaning you can receive it even if you owe no federal tax. For 2024, up to $1,700 per child is refundable. The remaining $300 per child is non-refundable, so you can only use it to reduce tax you actually owe.

If you earn very little and owe no tax, you may still receive the refundable portion as a payment from the IRS. To claim the refundable portion, you must file a tax return and report it on Schedule 8812. Many people with low income do not file because they think they do not have to, but filing allows them to receive this refund.

How to claim the credit on your tax return

You report the Child Tax Credit on your federal tax return (Form 1040). If you are claiming only the non-refundable portion, you enter the credit amount on the main form. If you are claiming the refundable portion, you must also complete Schedule 8812 and attach it to your return.

You will need the child's full name, date of birth, and Social Security number for each child. The IRS matches this information to their records, so accuracy is critical. If the name or number does not match, the IRS may deny the credit and send you a notice.

If you use tax preparation software or work with a tax preparer, they will guide you through entering this information. The software will calculate the credit based on your income and filing status.

What documents you need

You do not need to send documents with your return, but you should keep them in case the IRS asks. Keep a copy of the child's birth certificate or passport showing their date of birth. Keep proof that the child lived with you for more than half the year — this can be school records, medical records, lease agreements, or utility bills showing your address and the dates you lived there.

Keep records showing you paid more than half the child's support costs for the year. This includes rent or mortgage, food, utilities, clothing, medical care, and education. If the child received support from another source (such as child support or a grandparent), document that amount as well.

Frequently Asked Questions

Can I claim the credit if the child's other parent also claims them?

No. Only one person can claim a child as a dependent on their tax return in a given year. If you and the other parent are separated or divorced, you must decide who will claim the child, or the IRS will deny the credit for both of you. The custody agreement or court order may specify who claims the child.

What if I did not file a tax return last year but think I should have?

You can file a return for prior years to claim the credit. The IRS generally allows you to go back three years. If you had very low income and did not file, you may be owed a refund from the refundable portion of the credit. Contact a tax preparer or the IRS for help filing a late return.

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

Yes. You can claim the credit for a child born at any point during the tax year. The child must have a Social Security number by the time you file your return. If your child was born late in the year and does not yet have a number, you can request one from the Social Security Administration and file your return once you receive it.

What happens if the IRS says the child's Social Security number does not match?

The IRS will send you a notice explaining the mismatch. You should verify the number on the child's Social Security card and correct it on an amended return (Form 1040-X) if it was wrong. If the number is correct, contact the Social Security Administration to ensure their records match.

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

You must have a valid Social Security number to claim the credit. If you have an ITIN (Individual Taxpayer Identification Number) instead, you cannot claim the Child Tax Credit, though you may be able to claim other credits. The child must be a U.S. citizen, national, or resident alien.