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 you support. It is not a refund or a payment — it lowers the amount of tax your income triggers. For the 2024 tax year, the credit is worth up to $2,000 per child under age 17.
The credit applies to children who are your biological children, stepchildren, adopted children, or foster children. They must live with you for more than half the year, be claimed as dependents on your tax return, and be U.S. citizens, nationals, or resident aliens. You must also have a valid Social Security number for each child to claim the credit.
The credit reduces your tax bill dollar-for-dollar. If you owe $3,000 in federal income tax and you have two children, the credit of $4,000 would wipe out your $3,000 bill and leave you with a refund of $1,000 — but only if you meet the rules for the refundable portion of the credit.
Key Takeaways
- The Child Tax Credit is worth up to $2,000 per child under 17 for the 2024 tax year, and it reduces the federal income tax you owe.
- Your income must fall below certain thresholds to claim the full credit; the credit begins to shrink at $400,000 for married couples filing jointly and $200,000 for single filers.
- You claim the credit on your federal tax return using Form 1040 and Schedule 8812, and you must have a valid Social Security number for each child.
- Part of the credit may be refundable, meaning you can receive money back even if you owe no tax, but only up to $1,700 per child for 2024.
- The credit rules and amounts change by tax year, so you should check the IRS website or a tax professional for the current year's limits before filing.
Income Limits and Phase-Out Rules
The full $2,000 credit per child is only available if your income stays below a certain level. For married couples filing jointly, the limit is $400,000 of modified adjusted gross income. For single filers and heads of household, the limit is $200,000. For married couples filing separately, the limit is $100,000.
Once your income exceeds these thresholds, the credit shrinks by $50 for every $1,000 (or fraction thereof) of income above the limit. This means a single parent earning $210,000 would lose $500 of the credit per child, bringing the credit down to $1,500 per child. The reduction continues until the credit reaches zero at higher income levels.
Your modified adjusted gross income is usually the same as your adjusted gross income shown on your tax return. If you are unsure whether your income falls below the threshold, calculate it from your prior year's return or consult a tax professional before filing.
How to Claim the Credit on Your Tax Return
You claim the Child Tax Credit when you file your federal income tax return. Most people file using Form 1040, the main individual income tax form. You list each child's name, date of birth, and Social Security number on the return itself.
If you have three or more children, you may also need to complete Schedule 8812 (Credits for may have access to Children and Other Dependents). This form calculates whether you are may have access to to the refundable portion of the credit. Your tax software or tax preparer will guide you through this if it applies to you.
You can file your return on paper or electronically. The IRS processes electronic returns faster, usually within 21 days. Paper returns take longer. You must file by April 15 of the year following the tax year (April 15, 2025 for the 2024 tax year), though you can request an extension.
The Refundable Portion of the Credit
Part of the Child Tax Credit is refundable, meaning you can receive money back even if you owe no federal income tax. For 2024, up to $1,700 per child is refundable. The remaining $300 per child is non-refundable, so it can only reduce your tax bill to zero — it cannot generate a refund.
To receive the refundable portion, you must have earned income during the year. Earned income includes wages, salaries, tips, and self-employment income. It does not include investment income, Social Security, unemployment benefits, or child support. You must also meet all other requirements for the credit.
If you earned $2,500 during the year and owe no tax, you could still receive a refund of up to $1,700 per child (the refundable portion), assuming you meet all other rules. The exact refund depends on your earned income and the number of children you claim.
What Documents You Need
To claim the Child Tax Credit, you need a valid Social Security number for each child. You can obtain a Social Security number by applying to the Social Security Administration; the process takes several weeks. Without a number, you cannot claim the credit.
You also need proof that the child lived with you for more than half the year. This is usually shown through your own records — rent or mortgage statements, school enrollment, medical records, or other documents with your address and the child's name. The IRS does not require you to submit these documents with your return, but you must keep them in case the IRS asks.
If you are claiming a foster child, you may need to provide court documents showing the placement. If you are claiming an adopted child, you may need adoption papers. Again, these are not submitted with your return unless the IRS requests them.
Changes to the Credit by Tax Year
The amount of the Child Tax Credit and the rules for claiming it change from year to year. For 2024, the credit is $2,000 per child. In prior years, the amount was different. Congress can change the credit amount, income limits, and refundable portion at any time.
Before you file your return, check the IRS website (irs.gov) or speak with a tax professional to confirm the current year's credit amount and rules. Tax software is usually updated by January to reflect the current year's rules, so using current software reduces the risk of error.
If you filed a return in a prior year and did not claim the credit because you thought you did not may have access to, you may be able to amend that return to claim it now. You have three years from the original due date to file an amended return using Form 1040-X.
Frequently Asked Questions
Can I claim the credit if the child's other parent also claims them?
No. Only one person can claim the credit for each child in a given year. If you and the child's other parent both file returns, you must decide who will claim the credit. If you cannot agree, the IRS has rules about who can claim it — usually the parent with primary custody. Filing conflicting returns will trigger an IRS review and delay both refunds.
What if I do not file a tax return because my income is too low?
You should still file a return to claim the refundable portion of the credit. Even if you owe no tax, filing allows you to receive the refundable credit as a refund. The IRS will not send you the money unless you file and claim it.
Can I claim the credit for a grandchild or niece?
Yes, if the child lives with you for more than half the year and you provide more than half their financial support. The child must also be your dependent. You do not need to be the biological parent. However, if the child's biological parent also claims them, only one of you can claim the credit per year.
What happens if I claim the credit and the IRS later says I was not may have access to to it?
The IRS will send you a notice explaining why you do not may have access to. You will owe back the credit amount plus interest and possibly penalties. If you disagree with the IRS decision, you can appeal through the IRS appeals process or file a claim in tax court. A tax professional can help you understand your options.
Does the credit affect my other benefits like SNAP or Medicaid?
The Child Tax Credit itself does not count as income for means-tested programs like SNAP or Medicaid. However, the refund you receive from the credit may be counted as a resource or income in the month you receive it, depending on the program's rules. Contact your local SNAP or Medicaid office to understand how a tax refund affects your specific situation.