How the Child Tax Credit Works and Who Can Claim It

What the Child Tax Credit Is

The Child Tax Credit is a reduction in the federal income taxes you owe, based on how many children under age 17 you claim on your tax return. The IRS gives you a dollar amount to subtract from your tax bill for each child. For the 2024 tax year, that amount is $2,000 per child, though Congress can change this amount year to year.

This is different from a deduction. A deduction lowers your taxable income. A credit directly lowers the taxes you owe. If you owe $3,000 in federal tax and you have one child, the $2,000 credit brings what you owe down to $1,000. If the credit is larger than what you owe, you may receive the difference as a refund.

The credit is only available on your federal tax return. State taxes and local taxes do not use it, though some states have their own child tax credits with different rules.

Key Takeaways

The Child Tax Credit reduces your federal tax bill by $2,000 per child under age 17 for the 2024 tax year, and the amount may change each year.
You must claim the child as a dependent on your return, have a valid Social Security number for the child, and meet income limits that vary based on your filing status.
If the credit is larger than your tax bill, you may receive the extra amount as a refund, but refundable portions have their own income limits.
You report the credit when you file your federal tax return; you do not claim it separately or in advance.

Income Limits and Who Can Claim the Credit

The Child Tax Credit begins to reduce if your income exceeds a certain threshold. For the 2024 tax year, the phase-out starts at $400,000 for married couples filing jointly and $200,000 for single filers. Once your income passes that point, the credit decreases by $50 for every $1,000 (or fraction thereof) over the limit.

To claim the credit, the child must be your dependent, meaning you provide more than half their financial support during the year. The child must be under age 17 at the end of the tax year, have a valid Social Security number, and be a U.S. citizen, national, or resident alien. The child must also live with you for more than half the year.

If you are married, you must file a joint return to claim the credit. If you are divorced or separated, only the parent with custody for the majority of the year can claim the child, unless you have a written agreement that gives the other parent the right to claim.

Refundable and Non-Refundable Portions

Part of the Child Tax Credit is refundable, meaning if the credit is larger than your tax bill, you get the extra money back. 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.

To receive the refundable portion, your earned income (wages, self-employment income) must be at least $2,500 for the year. The refundable amount is limited to 15 percent of your earned income above $2,500, up to the $1,700 cap per child. If you have no earned income or very low earned income, you may not receive a refund, even though you can still use the non-refundable portion to reduce your tax bill.

The non-refundable portion — the part that only reduces what you owe — has no earned income requirement. If you owe taxes but have no earned income, you can still use the non-refundable portion to lower your bill.

How to Claim the Credit on Your Tax Return

You claim the Child Tax Credit by filling out Form 1040 (the main federal income tax form) and Schedule 8812 if you are claiming the refundable portion. You will need the child's name, date of birth, and Social Security number. You list each child on the return and the IRS calculates the credit amount based on your income and the number of children.

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 complete the child information section of Form 1040 and attach Schedule 8812 if you expect a refund from the refundable portion.

You do not file the credit separately or in advance. It is part of your annual tax return, filed by April 15 of the year after the tax year ends (April 15, 2025 for the 2024 tax year).

Changes to the Credit Year to Year

Congress sets the Child Tax Credit amount and the income limits. These can change. For example, the credit was $2,000 per child starting in 2018. In 2021 and 2022, it temporarily increased to $3,000 per child (or $3,600 for children under age 6) and was partially refundable to lower-income families. That expansion ended after 2022, and the credit returned to $2,000 per child for 2023 and 2024.

When you file your return, use the rules and amounts that apply to that tax year. Tax software and IRS forms are updated each year to reflect the current rules. If you are unsure which year's rules apply to you, check the year on the form or ask a tax preparer.

What Documents You Need

You need proof of the child's identity and relationship to you. Gather these before you file:

The child's Social Security number (or Individual Taxpayer Identification Number if the child does not have a Social Security number).
The child's date of birth.
Proof that the child lived with you for more than half the year (lease, mortgage statement, utility bill, school records, or medical records showing your address and the child's name).
Your own tax documents: W-2 forms from employers, 1099 forms if you are self-employed, and records of any other income.

You do not send these documents with your return unless the IRS asks for them. Keep them in your records in case the IRS questions your claim later.

Frequently Asked Questions

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 or an Individual Taxpayer Identification Number (ITIN). If your child was born in the U.S. but does not have a Social Security number, you can request one from the Social Security Administration. If your child is not a U.S. citizen and does not have an ITIN, you can request one from the IRS using Form W-7.

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

Only one parent can claim the child as a dependent on their return each year. Usually, the parent with custody for the majority of the year claims the child. If you share custody equally, you can agree in writing which parent claims the child, or you can alternate years. The parent who does not claim the child cannot claim the credit for that child.

Can I claim the credit if my child turned 17 during the year?

No. The child must be under age 17 at the end of the tax year to may have access to. If your child turned 17 on December 31, 2024, they do not may have access to for the 2024 credit. If they turned 17 on January 1, 2025, they do not may have access to for the 2024 credit but may may have access to for 2025.

What happens if I claimed the wrong number of children on my return?

If you made a mistake, you can file an amended return using Form 1040-X. The IRS will recalculate your tax bill and either send you a refund or bill you for the additional tax owed. You have three years from the original due date to file an amended return and claim a refund.

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

The credit does not disappear, but it reduces. For 2024, it begins to phase out at $400,000 for married couples filing jointly and $200,000 for single filers. For every $1,000 over the limit, the credit decreases by $50. If your income is far above the limit, the credit may reduce to zero, but you will not owe extra tax because of it.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.