What the Child Tax Credit gives you

The Child Tax Credit is a reduction in the federal income tax you owe, worth up to $2,000 per child under age 17. You claim it when you file your tax return. The IRS subtracts the credit from your total tax bill — so if you owe $3,000 in tax and you have one child, the credit brings that down to $1,000.

The credit is not a refund and not a payment from the government. It is a dollar-for-dollar reduction in what you already owe. If the credit is larger than the tax you owe, you may receive the difference as a refund, but that depends on your income and filing status.

To claim the credit, you must include the child's Social Security number on your return, be the child's parent or legal guardian, and meet income limits based on your filing status. The income thresholds are $400,000 for married couples filing jointly and $200,000 for single filers and heads of household.

Key Takeaways

  • The Child Tax Credit reduces your federal tax bill by up to $2,000 per child under 17 in 2024.
  • You must provide the child's Social Security number, claim them as a dependent, and stay under the income limit to receive the credit.
  • If the credit exceeds the tax you owe, you may receive the excess as a refund, but the amount depends on your income level.
  • You claim the credit on your federal tax return using Form 1040 and Schedule 8812, not through a separate application process.

Income limits and how they affect your credit amount

The full $2,000 credit is available if your income is below $400,000 (married filing jointly) or $200,000 (single or head of household). If your income exceeds these thresholds, the credit begins to phase out — it decreases by $50 for every $1,000 over the limit.

For example, if you are single with income of $210,000, you are $10,000 over the $200,000 threshold. The credit reduces by $50 for each $1,000, so $10,000 ÷ $1,000 = 10 increments × $50 = $500 reduction. Your credit would be $1,500 instead of $2,000.

The income used to calculate this is your modified adjusted gross income (MAGI), which is usually your adjusted gross income from your tax return. You do not need to calculate this yourself — the IRS does it when they process your return.

Who can claim the credit

You can claim the Child Tax Credit if the child is your biological child, stepchild, adopted child, or foster child. The child must be under age 17 at the end of the tax year (so a child who turns 17 on December 31, 2024, does not count). The child must also be a U.S. citizen, national, or resident alien with a valid Social Security number.

You must claim the child as a dependent on your return. The child must live with you for more than half the year — temporary absences for school, medical care, or military service do not break this requirement. If the child's parents are divorced or separated, usually the parent with primary custody can claim the credit, but this can be transferred by written agreement.

If you are not a U.S. citizen or resident alien yourself, you cannot claim the credit, even if your child is a citizen. You must also have a valid Social Security number or Individual Taxpayer Identification Number (ITIN) to claim any tax credit.

How to claim the credit on your tax return

You claim the Child Tax Credit on Form 1040 (the main federal income tax form) and Schedule 8812 (the form for child and dependent credits). You will need the child's full name, date of birth, and Social Security number.

If you use tax software, the software walks you through questions about your children and calculates the credit automatically. If you file by paper, you fill in the child's information on Schedule 8812, calculate the credit amount based on the income limits, and enter it on Form 1040.

You file your return with the IRS by the normal deadline — usually April 15 of the following year. If you are owed a refund that includes the Child Tax Credit, the IRS processes it and sends the refund by direct deposit or check, typically within 21 days of accepting your return.

Refundable vs. 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 tax. The refundable portion is called the Additional Child Tax Credit, and it is limited to 15% of your earned income above $2,500, up to a maximum of $1,700 per child in 2024.

The remaining $300 per child (up to the $2,000 total) is non-refundable. This means it can only reduce the tax you owe; you cannot receive it as a refund if you owe no tax. For example, if you owe $800 in tax and have two children, the credit reduces your tax to zero, but you do not receive the remaining $3,200 as a refund.

If your income is very low, the refundable portion may be your only benefit from the credit. The IRS calculates both portions automatically when you file.

Changes and updates for 2024

The Child Tax Credit amount remains $2,000 per child in 2024. The income thresholds and phase-out rules are the same as 2023. The refundable portion (Additional Child Tax Credit) is capped at $1,700 per child.

These amounts are set by federal law and do not change year to year unless Congress passes new legislation. The IRS publishes updated instructions each tax year, but the core credit structure has remained stable since 2017.

Some states also offer their own child tax credits or dependent exemptions. These are separate from the federal credit and are claimed on your state tax return. Check your state's tax agency website to see if you may be able to claim a state credit in addition to the federal one.

Frequently Asked Questions

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

No. The child must have a valid Social Security number or ITIN to be claimed as a dependent and to receive the credit. 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 an amended return once you receive it.

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

Usually only one parent can claim the credit in a given year. If you have joint custody, the parent with primary physical custody (where the child lives more than half the year) can claim it. The other parent can claim it only if the first parent signs a written agreement releasing the claim. This agreement must be attached to the non-custodial parent's return.

Do I lose the credit if my income goes over the limit?

You do not lose it entirely. The credit phases out — it decreases by $50 for every $1,000 you earn over the threshold. So even at a higher income, you may still receive a partial credit. The IRS calculates the exact amount when you file.

Can I claim the credit if I am claimed as a dependent on someone else's return?

No. If another person (usually a parent) claims you as a dependent, you cannot claim the Child Tax Credit for your own children. Only the person who claims you as a dependent can claim credits for your children, if they meet the other requirements.

What if I file my return and forget to include a child?

You can file an amended return using Form 1040-X to add the child and claim the credit. The IRS will recalculate your refund or the amount you owe. There is no time limit to claim the credit, but it is simpler to get it right on your original return.