What the Child Tax Credit is and who can claim it

The Child Tax Credit is a federal tax reduction you can claim on your 2024 tax return for each child under 17 who lives with you. The IRS subtracts the credit amount directly from the taxes you owe — so a $2,000 credit means you pay $2,000 less in federal income tax. If the credit is larger than the tax you owe, you may receive the difference as a refund.

You must be the child's parent, stepparent, or legal guardian, and the child must be a U.S. citizen, national, or resident alien with a valid Social Security number. The child must also live with you for more than half the year. If you are divorced or separated, the parent who has custody for the greater part of the year can claim the credit, unless you have a written agreement that says otherwise.

Your income determines whether you can claim the full credit, a reduced credit, or no credit at all. For 2024, the credit begins to reduce if your modified adjusted gross income (MAGI) exceeds $400,000 for married couples filing jointly, or $200,000 for single filers and heads of household.

Key Takeaways

  • The Child Tax Credit for 2024 is $2,000 per child under age 17, subtracted directly from your federal tax bill.
  • Your income must be below $400,000 (married filing jointly) or $200,000 (single) to claim the full credit; above those thresholds, the credit reduces by $50 for each $1,000 of income over the limit.
  • The child must live with you for more than half the year, have a valid Social Security number, and be under 17 at the end of 2024.
  • You report the credit on Form 1040 or Form 1040-SR when you file your 2024 tax return; you do not claim it separately or in advance.

The 2024 credit amount and income phase-out

For the 2024 tax year, the credit is $2,000 per may have access to child. This amount has remained the same since 2018. The credit does not increase with inflation or change year to year unless Congress passes new legislation.

If your MAGI is above the threshold for your filing status, the credit reduces by $50 for every $1,000 (or fraction thereof) of income over the limit. For example, if you are single with MAGI of $201,000, you are $1,000 over the $200,000 threshold, so your credit reduces by $50 per child. If your MAGI is $202,000, the reduction is $100 per child, because even $1 over $201,000 counts as another full $1,000 for this calculation.

The reduction continues until the credit reaches zero. For a single parent with one child, the credit phases out completely around $220,000 in MAGI. For married couples filing jointly with one child, it phases out around $440,000.

How to claim the credit on your tax return

You claim the Child Tax Credit on your federal income tax return for 2024, filed in 2025. The credit appears on Form 1040 or Form 1040-SR (for taxpayers 65 and older). You do not file a separate form or apply to the IRS in advance; the credit is part of your regular tax filing.

To claim the credit, you need the child's full name, date of birth, and Social Security number. You enter this information in the section of Form 1040 labeled "Dependents." The IRS matches the Social Security number to the child's name to verify the child exists and that you have not claimed the same child twice.

If you file electronically, tax software will walk you through the questions and calculate the credit automatically. If you file by paper, you fill in the dependent information on the form and the credit calculation is included in the standard instructions. You do not need to submit proof of the child's age, residency, or relationship — but you must keep records (birth certificate, lease, custody order) in case the IRS asks.

Refundable and non-refundable portions of the credit

Part of the Child Tax Credit is refundable, meaning you can receive it as a refund even if you owe no federal income tax. The refundable portion is called the Additional Child Tax Credit, and for 2024 it is limited to $1,700 per child. The remaining $300 per child is non-refundable, so you can only use it to reduce taxes you owe.

This matters most for lower-income families. If you owe $500 in federal tax and have two children, the $2,000 credit (or whatever portion you may have access to for) first wipes out the $500 you owe. The remaining $1,500 can be refunded to you, but only up to $1,700 per child. In this case, you would receive a $1,500 refund. If you had three children, you could receive up to $3,400 in refundable credit (two children at $1,700 each), but the third child's non-refundable portion would not generate a refund.

The refundable portion is calculated based on your earned income (wages, self-employment income). If your earned income is very low, the refundable credit may be limited further. The IRS publishes a worksheet in the Form 1040 instructions to calculate this limit.

What happens if you have shared custody or multiple households

If a child lives with both parents but you are not married, only one parent can claim the credit in a given year. The parent who has custody of the child for the greater part of the year has the right to claim it. If custody is split exactly 50-50, the parent with the higher income can claim the credit unless there is a written agreement saying otherwise.

If you are divorced or separated and have a custody order, that order may specify who claims the credit. If the order does not specify, the custodial parent (the one with primary physical custody) claims it. The non-custodial parent can claim the credit only if the custodial parent signs Form 8332 (Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent) and gives it to the non-custodial parent.

If a child lives with you for part of the year and with another person for the rest, you must determine who had custody for the greater part of the year. Days the child spends at school or in temporary care (hospital, camp, detention) count as days with the person who normally has custody. If you cannot determine who had custody for more than half the year, neither parent can claim the credit.

Changes from previous years and what to watch for

The Child Tax Credit has changed significantly over time. From 2018 through 2024, the credit has been $2,000 per child. Before 2018, it was $1,000 per child. After 2025, the credit is scheduled to return to $1,000 per child unless Congress extends the higher amount, but that is a future change and does not affect your 2024 return.

In 2021 and 2022, the IRS sent advance payments of the credit to many families, reducing the amount claimed on the tax return. Those advance payments ended in 2023. For 2024, there are no advance payments; you claim the full credit on your tax return filed in 2025.

If you had a major change in income, custody, or family size in 2024, your credit amount may be different from previous years. If you had a child in late 2024, you can claim the credit for that child on your 2024 return. If a child turned 17 in 2024, you can claim the credit for that year but not for 2025.

Frequently Asked Questions

Can I claim the credit if my child does not have a Social Security number?

No. The child must have a valid Social Security number, and you must enter it on your tax return. If your child was born in 2024 and does not yet have a number, you can apply for one through the Social Security Administration before you file your return. You cannot claim the credit without the number.

What if I claimed the wrong child or the same child twice?

The IRS will catch this when it processes your return, because each Social Security number can only be claimed once per year. If you made an error, you will receive a notice asking you to correct it. You can file an amended return (Form 1040-X) to fix the mistake. If the IRS corrects it for you, you may owe additional tax plus interest.

Do I lose the credit if my child works or earns income?

No. The child's income does not affect your ability to claim the credit. The credit depends only on your income, the child's age, and whether the child lives with you. A teenager's job or part-time earnings do not reduce or eliminate the credit.

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

You can claim the credit if you are a resident alien with a valid Individual Taxpayer Identification Number (ITIN) and you file a U.S. tax return. The child must be a U.S. citizen, national, or resident alien with a Social Security number. Non-resident aliens generally cannot claim the credit.

What if my income changes after I file my return?

If your income changes after you file, you do not need to do anything unless the IRS contacts you. The credit is based on your income for the year 2024, reported on the return you file in 2025. If you made an error on your return, you can file an amended return to correct it within three years.