The Child Tax Credit in 2024

The Child Tax Credit is a federal tax credit worth up to $2,000 per child under age 17. You claim it when you file your tax return, and it reduces the federal income tax you owe dollar-for-dollar. If the credit is larger than your tax bill, you may receive the difference as a refund, though the refundable portion has a limit.

The credit is available to taxpayers with a modified adjusted gross income (MAGI) below certain thresholds: $400,000 for married couples filing jointly, and $200,000 for single filers and heads of household. The credit begins to phase out—meaning it shrinks—once you exceed these income limits, decreasing by $50 for each $1,000 (or fraction thereof) over the threshold.

To claim the credit, you must have a valid Social Security number for each child, and the child must be your dependent. The child's relationship to you, citizenship status, and residency all matter. You file the credit on your federal tax return using IRS Form 1040 and Schedule 8812.

Key Takeaways

  • The Child Tax Credit is worth up to $2,000 per child under 17 and reduces your federal tax bill directly.
  • You must have a valid Social Security number for each child and claim them as dependents on your return.
  • The credit phases out if your income exceeds $400,000 (married filing jointly) or $200,000 (single or head of household).
  • Part of the credit may be refundable, meaning you could receive money back even if you owe no tax, but the refundable portion is capped at $1,700 per child for 2024.
  • You claim the credit when you file your federal tax return; there is no separate registration or advance claim process for 2024.

Who Can Claim the Child Tax Credit

You can claim the credit for each child who meets all of these conditions: the child is under age 17 at the end of the tax year, the child is your son, daughter, stepchild, foster child, sibling, or descendant of any of these (including adopted children), the child lived with you for more than half the year, you paid more than half the child's living expenses during the year, and the child is a U.S. citizen, national, or resident alien with a valid Social Security number.

The child must also be claimed as your dependent on your tax return. If you and another person both have a claim to the same child—for example, in a custody situation—only one of you can claim the credit. The IRS has specific rules about who gets priority in these cases, generally based on who has primary custody.

If you are married, you and your spouse must file a joint return to claim the credit. If you file separately, neither of you can use it.

Income Limits and How the Credit Phases Out

Your income determines whether you can claim the full $2,000 credit or a reduced amount. The IRS uses your modified adjusted gross income (MAGI) to calculate this. For 2024, the income thresholds are $400,000 for married couples filing jointly, $200,000 for single filers, and $200,000 for heads of household.

Once your MAGI exceeds the threshold for your filing status, the credit decreases by $50 for every $1,000 (or any part of $1,000) 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. If your MAGI is $201,500, the credit still reduces by $50 because you are over $1,000 but not yet at $2,000.

If your income is very high, the credit can phase out completely. The IRS worksheet on Schedule 8812 walks you through the calculation if your income exceeds the threshold.

Refundable vs. Nonrefundable Portions

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 or Refundable Child Tax Credit. For 2024, up to $1,700 per child can be refundable.

The remaining $300 per child (up to the $2,000 total) is nonrefundable. This means it can only reduce your tax bill to zero; it cannot produce a refund beyond that. You claim the refundable portion on Schedule 8812 when you file your return.

Whether you receive the full refundable amount depends on your earned income. The IRS calculates the refundable credit based on your earned income (wages, self-employment income, etc.) and your filing status. If your earned income is very low, the refundable portion may be smaller than $1,700 per child.

How to Claim the Credit on Your Tax Return

You claim the Child Tax Credit by filing a federal tax return, even if you normally would not have to file. You report each child's name and Social Security number on your return. On Form 1040, you enter the total credit amount on the line for the Child Tax Credit. If your income exceeds the phase-out threshold, you must complete Schedule 8812 to calculate the correct credit amount.

If you are claiming the refundable portion, Schedule 8812 is required. The IRS uses this form to determine how much of your credit can be refunded to you. You cannot claim the credit without providing valid Social Security numbers for each child.

You file your return with the IRS by the annual deadline, usually April 15. You can file on paper or electronically. If you use tax software or a tax preparer, they will guide you through entering the information and calculating the credit.

Changes and Updates for 2024

For 2024, the credit remains at $2,000 per child, and the income thresholds remain at $400,000 (married filing jointly) and $200,000 (single or head of household). The refundable portion is capped at $1,700 per child. These amounts do not change year to year unless Congress passes new legislation.

In previous years, the credit was temporarily expanded and made more refundable through advance payments, but those provisions ended. For 2024, there is no advance payment option. You receive the credit only when you file your tax return and the IRS processes it.

Tax laws can change, so it is worth checking the IRS website or speaking with a tax professional if you are unsure whether your situation qualifies or if your income is close to the phase-out threshold.

Frequently Asked Questions

Do I have to file a tax return to get the Child Tax Credit?

Yes, you must file a federal tax return to claim the credit. Even if your income is below the filing requirement, you should file if you have a child who qualifies, because you may receive a refund through the refundable portion of the credit.

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

You cannot claim the credit without a valid Social Security number for each child. If your child was born in the U.S., you can apply for a Social Security number through the Social Security Administration. If your child is not a U.S. citizen, they must be a resident alien with a valid number to may have access to.

Can I claim the credit if I share custody of my child?

Only one parent can claim the credit per child per year. If you share custody, the parent with primary custody (more than half the year) generally has the right to claim it. You can agree in writing to let the other parent claim it, but the IRS requires specific documentation. Consult a tax professional if custody is split.

What happens if my income changes after I file?

If your income changes significantly after you file, you may need to amend your return using Form 1040-X. This is especially important if your income drops below the phase-out threshold, because you might be may have access to to a larger credit than you originally claimed.

Is the Child Tax Credit the same as the Earned Income Tax Credit?

No, they are separate credits. The Earned Income Tax Credit (EITC) is for low- to moderate-income workers and is based on earned income. The Child Tax Credit is available to a broader range of taxpayers and is based on the number of may have access to children, regardless of income level (up to the phase-out threshold).