What the Child Tax Credit is today

The Child Tax Credit is a tax reduction you can claim on your federal income 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, or receive $2,000 more as a refund if you don't owe that much.

The credit amount and income limits change based on Congress. As of the 2024 tax year (returns filed in 2025), the credit is $2,000 per child. That amount was set to drop to $1,600 per child starting in 2026 unless Congress extends it, but you should check the IRS website or a tax professional closer to that date for any changes.

You claim the credit when you file your tax return. You do not receive it automatically, and you do not receive it as a separate payment unless you received advance payments in prior years (which ended in 2021).

Key Takeaways

  • The Child Tax Credit is $2,000 per child under 17 for the 2024 tax year, claimed on your federal tax return.
  • Your income must be below a certain threshold to claim the full credit — the limit is $400,000 for married couples filing jointly and $200,000 for single filers in 2024.
  • You must have a valid Social Security number for each child you claim, and the child must live with you for more than half the year.
  • If you owe less in taxes than the credit amount, you may receive the difference as a refund, up to $1,700 per child (the refundable portion).
  • The credit amount is scheduled to decrease to $1,600 per child in 2026 unless Congress passes new legislation.

Income limits and phase-out rules

The credit begins to reduce if your income exceeds a threshold. For the 2024 tax year, the full $2,000 credit is available if your modified adjusted gross income (MAGI) is $400,000 or less for married couples filing jointly, or $200,000 or less for single filers, heads of household, and married couples filing separately.

Once your income goes above that threshold, the credit decreases by $50 for every $1,000 (or fraction of $1,000) over the limit. This means a single parent earning $210,000 would lose $500 of the credit, bringing it down to $1,500 per child. The reduction continues until the credit reaches zero at higher income levels.

Your MAGI is usually your adjusted gross income from your tax return, but it can include certain types of income that are normally excluded. A tax professional or the IRS instructions for Form 1040 can clarify what counts toward your MAGI.

Who can claim the credit

You can claim the Child Tax Credit for a child if all of these are true: the child is your son, daughter, stepchild, foster child, sibling, or descendant of any of these (such as a grandchild or niece); the child was under age 17 at the end of the tax year; the child lived with you for more than half the year; you provided more than half the child's financial support during the year; and the child is a U.S. citizen, national, or resident alien with a valid Social Security number.

You must also claim the child as a dependent on your tax 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.

If you are married, you and your spouse must file a joint return to claim the credit. If you are divorced or separated, the parent who claims the child as a dependent on their return is the one who can claim the credit.

What documents you need

To claim the credit, you need the child's full legal name and valid Social Security number. The Social Security number must match the name exactly as it appears on the Social Security Administration's records, or the IRS will reject the credit.

You do not file a separate form to claim the Child Tax Credit. Instead, you report it on your main tax return (Form 1040) or through the tax software you use. The form will ask you to list each child's name, Social Security number, and relationship to you.

Keep records showing the child lived with you for more than half the year — such as school enrollment, medical records, or lease agreements — in case the IRS asks to verify your claim. You do not send these documents with your return, but you must have them available if requested.

The refundable portion of the credit

Part of the Child Tax Credit is refundable, which means you can receive money back even if you owe zero in federal income tax. The refundable portion is called the Additional Child Tax Credit or Refundable Child Tax Credit, and it is limited to $1,700 per child for the 2024 tax year.

Here is how it works: if your total Child Tax Credit is $2,000 but you only owe $1,200 in federal income tax, the IRS will reduce your tax bill to zero and send you a refund of $800 (the difference). However, the refund cannot exceed $1,700 per child, even if your credit is larger.

To receive the refundable portion, you must have earned income during the year — such as wages from a job, self-employment income, or certain other types of income. If you have no earned income, you can claim the non-refundable portion of the credit (up to $2,000), but you will not receive a refund for any amount that exceeds your tax liability.

How the credit changed in recent years

From 2021 through 2022, Congress temporarily increased the Child Tax Credit to $3,600 per child under 6 and $3,000 per child ages 6 to 16. That increase has expired. The credit returned to $2,000 per child starting with the 2023 tax year.

During 2021, the IRS also sent advance payments of the credit to families who met income requirements — monthly payments of $250 to $300 per child depending on age. Those advance payments ended in December 2021 and have not resumed. If you received advance payments, you may have had to repay some or all of them when you filed your 2021 tax return, depending on your final income.

The $2,000 credit amount is set to expire after the 2025 tax year unless Congress extends it. Starting in 2026, the credit would drop to $1,600 per child unless new legislation is passed. You should check closer to that date for any updates.

Frequently Asked Questions

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

No. Your child must have a valid Social Security number, and it must match the name on your tax return exactly. If your child was born during the tax year and does not yet have a number, you can apply for one through the Social Security Administration and file your return once you have it. Some tax software allows you to file an amended return later if the number arrives after you file.

What if I share custody of my child with another parent?

Only one parent can claim the Child Tax Credit for each child. The parent who claims the child as a dependent on their tax return is the one who claims the credit. If you and the other parent take turns claiming the child in different years, only the parent claiming that year receives the credit. If you both try to claim the same child, the IRS will disallow one of the claims and may delay both refunds while they investigate.

Do I lose the credit if my income is too high?

The credit does not disappear entirely, but it reduces. If your income exceeds the threshold for your filing status, the credit decreases by $50 for every $1,000 over the limit. At very high incomes, the credit can reduce to zero, but most families with income below $400,000 (married filing jointly) or $200,000 (single) receive at least some credit.

Can I claim the credit for a foster child or grandchild?

Yes, if the child meets all the other requirements: under 17 at the end of the year, lived with you for more than half the year, you provided more than half their support, and you claim them as a dependent. Foster children and grandchildren count as long as they are related to you or placed with you by an authorized agency.

What happens if the IRS rejects my credit claim?

The most common reason for rejection is a mismatch between the child's name and Social Security number. Double-check that both are exactly as they appear on the Social Security Administration's records. If the IRS rejects your claim, they will send you a notice explaining why. You can then file an amended return (Form 1040-X) with the correct information once you have resolved the issue.