The Child Tax Credit amount depends on the tax year and your income

For the 2024 tax year (filed in 2025), the Child Tax Credit is $2,000 per child under age 17. This is the federal amount that applies nationwide. The credit reduces the federal income tax you owe dollar-for-dollar — if you owe $3,000 in tax and have two may have access to children, the credit brings that down to $1,000.

The amount you actually receive depends on three things: how many children under 17 you claim, your household income, and whether you file your taxes. The credit begins to shrink if your income exceeds $400,000 (married filing jointly) or $200,000 (single filers). For every $1,000 over that threshold, the credit reduces by $50.

Some families receive part of the credit as a refund even if they owe no tax. This is called the refundable portion, and it is limited to $1,700 per child for 2024. The remaining $300 per child is non-refundable, meaning you can only use it to reduce tax you actually owe.

Key Takeaways

  • The Child Tax Credit is $2,000 per child under 17 for the 2024 tax year, and the amount does not change based on state or local taxes.
  • You must file a federal tax return to claim the credit, even if your income is too low to owe tax.
  • The credit reduces dollar-for-dollar until your income exceeds $400,000 (married) or $200,000 (single), then decreases by $50 for each $1,000 over that limit.
  • Up to $1,700 of the $2,000 credit per child can be refunded to you as a tax refund if you have no tax liability.

How the refundable and non-refundable portions work

The $2,000 credit splits into two parts. The refundable portion ($1,700 for 2024) means you can get money back even if you owe zero federal tax. The non-refundable portion ($300) can only reduce tax you actually owe — if you have no tax liability, you lose that $300.

Example: You have one child, earn $25,000 a year, and owe no federal tax. You can receive up to $1,700 as a refund. If you had earned $35,000 and owed $500 in tax, the full $2,000 credit would wipe out that $500 liability and you would receive $1,500 as a refund.

The refundable amount is tied to your earned income. If your earned income is less than $2,500, the refundable credit is limited to 15 percent of that income. This rarely affects working families but can matter for those with very low or primarily investment income.

Income limits and how they reduce the credit

The credit phases out — meaning it gets smaller — once your income crosses a threshold. For 2024, that threshold is $400,000 if you file as married filing jointly, or $200,000 if you file as single, head of household, or may have access to widow(er).

The reduction is $50 for every $1,000 (or fraction thereof) over the threshold. If you are married filing jointly and earn $410,000, you are $10,000 over the limit. That means your credit reduces by $500 ($50 × 10). With two children, your credit would be $3,500 instead of $4,000.

Most families never hit this threshold. It matters mainly for high-income households. If your income is below these limits, the phase-out does not affect you.

What changed from 2023 to 2024

The Child Tax Credit remained at $2,000 per child from 2023 to 2024. The refundable portion stayed at $1,700. The income thresholds and phase-out rate did not change either.

The credit is set to expire at the end of 2025 unless Congress extends it. Starting in 2026, the credit would drop to $1,000 per child unless new legislation passes. This is a scheduled change built into current tax law, not a proposal — it is already written into the tax code.

How to claim the credit on your tax return

You claim the Child Tax Credit on your federal tax return using Form 1040 and Schedule 8812 (if you need to calculate the refundable portion). Most tax software fills these out automatically once you enter your children's names, birthdates, and Social Security numbers.

You must have a valid Social Security number for each child to claim the credit. The child must be under 17 at the end of the tax year, be a U.S. citizen, national, or resident alien, and live with you for more than half the year. You must also be the child's parent, stepparent, or legal guardian.

If you use a tax preparer or software, they will ask for this information during the intake process. If you file by hand, you enter the information on the form itself. The IRS matches the Social Security numbers you provide against their records, so accuracy matters.

What happens if you received advance payments in prior years

In 2021, the IRS sent advance Child Tax Credit payments to millions of families — monthly checks from July through December. Those were partial payments of the 2021 credit. When you filed your 2021 tax return in 2022, you reported how much you received and the IRS adjusted your refund or bill accordingly.

Those advance payments ended in 2022. There are no advance payments for 2024 or 2025. You claim the full credit when you file your tax return, and you receive it as part of your refund or as a reduction in the tax you owe.

Frequently Asked Questions

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

Yes. Even if your income is too low to owe tax, you must file a return to claim the credit and receive the refundable portion. The IRS does not automatically send the credit — you have to report it on your return.

Can I claim the credit for a child who does not have a Social Security number?

No. The child must have a valid Social Security number. If your child was born late in the year and does not yet have a number, you can still file your return and claim the credit once you obtain the number — you may need to amend your return or file a corrected return.

What if my income is above the phase-out threshold?

The credit reduces by $50 for every $1,000 over the threshold. If you are significantly over the limit, the credit may shrink to zero. You can still claim it, but the amount will be smaller than $2,000 per child.

Can two parents both claim the same child?

No. Only one person can claim the credit for each child. If parents are divorced or separated, the parent who has custody for more than half the year usually claims the credit, unless they sign a form agreeing to let the other parent claim it.

Does the Child Tax Credit count as income for other programs?

No. The Child Tax Credit is a tax credit, not income. It does not count toward income limits for programs like Medicaid, SNAP, or housing assistance. It also does not affect your may be able to access for other tax credits.