What the 2024 Child Tax Credit is

The Child Tax Credit is a reduction in the federal income taxes you owe, based on how many children under 17 you claim as dependents. For 2024, the credit is $2,000 per child. If you owe $3,000 in federal income tax and have two children, the credit reduces what you owe to $1,000. The credit applies to children who are U.S. citizens, nationals, or resident aliens with a valid Social Security number.

The credit is not the same as a deduction. A deduction reduces your taxable income; a credit directly reduces the tax bill itself. This makes the credit more valuable. You claim the Child Tax Credit when you file your federal tax return, usually between January and April of the following year.

The credit has income limits. If your modified adjusted gross income (MAGI) exceeds a threshold, the credit begins to phase out — meaning you receive less of it. For 2024, the phase-out begins at $400,000 for married couples filing jointly and $200,000 for single filers and heads of household.

Key Takeaways

  • The 2024 Child Tax Credit is $2,000 per child under 17 claimed as a dependent on your tax return.
  • The credit reduces your federal income tax dollar-for-dollar, making it more valuable than a tax deduction.
  • You must have a valid Social Security number for each child to claim the credit.
  • If your income exceeds $400,000 (married filing jointly) or $200,000 (single), the credit phases out by $50 for each $1,000 over the limit.
  • Part of the credit may be refundable, meaning you could receive money back even if you owe no tax, up to a limit set by law.

Income limits and how the credit phases out

The Child Tax Credit begins to reduce if your MAGI goes above certain thresholds. For married couples filing jointly in 2024, the threshold is $400,000. For single filers, heads of household, and married couples filing separately, it is $200,000. Your MAGI is usually your adjusted gross income (AGI) from your tax return, though some income sources are added back in specific situations.

Once your income exceeds the threshold, the credit decreases by $50 for every $1,000 (or fraction thereof) over the limit. For example, if you are single with an MAGI of $201,000, you are $1,000 over the $200,000 threshold. Your credit reduces by $50. If your MAGI is $201,500, the credit still reduces by $50 because the rule counts any fraction of $1,000 as a full $1,000.

The phase-out can eliminate the credit entirely if your income is high enough. A single filer with MAGI of $240,000 would have no Child Tax Credit available. The exact reduction depends on your specific income and filing status.

Refundable vs. non-refundable portions of the credit

Part of the Child Tax Credit is refundable, and part is non-refundable. A non-refundable credit can only reduce your tax bill to zero; it cannot result in a refund. A refundable credit can result in money paid to you, even if you owe no tax.

For 2024, up to $1,700 per child of the $2,000 credit is refundable. This portion is called the Additional Child Tax Credit or the Refundable Child Tax Credit. The remaining $300 per child is non-refundable. This means if you have one child and owe $500 in federal tax, the non-refundable portion ($300) eliminates your tax bill, and the refundable portion ($1,700) cannot give you a refund because you have already used the credit to zero out your tax.

However, the refundable portion has its own rules. You must have earned income (wages, self-employment income, or certain other sources) to claim the refundable portion. The amount of refundable credit you can receive is limited to the greater of 15 percent of your earned income over $2,500, or a set maximum per child. For 2024, the maximum refundable credit per child is $1,700, but your actual refund may be less depending on your earned income.

Who can claim the Child Tax Credit

You can claim the Child Tax Credit for a child if you meet several requirements. The child must be under 17 at the end of the tax year (December 31, 2024). The child must be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these (such as a grandchild or niece). The child must have lived with you for more than half of 2024. The child must be a U.S. citizen, national, or resident alien.

You must also claim the child as a dependent on your tax return, and the child must have a valid Social Security number. The Social Security number must be issued by the Social Security Administration and be valid for employment. A number that is valid for tax purposes only does not may have access to.

If you are divorced or separated, the parent who claims the child as a dependent on their tax return is the one who can claim the credit. If both parents claim the child, the IRS will disallow the credit for one of them. If you are unsure who should claim the child, the IRS has rules based on custody and support; a tax professional can help you determine who qualifies.

How to claim the credit on your 2024 tax return

You claim the Child Tax Credit by filing a federal income tax return with the IRS, even if you do not normally have to file. You will need to complete Form 1040 (the main individual income tax form) and Schedule 8812 if you are claiming the refundable portion of the credit. If you use tax software or a tax preparer, they will guide you through the questions and fill out the forms for you.

When you file, you will enter each child's name, date of birth, Social Security number, and relationship to you. The IRS matches this information against Social Security Administration records to verify the child exists and that the number is valid. If there is a mismatch, the IRS may deny the credit and send you a notice.

You file your return between January 1 and the tax deadline, usually April 15 of the following year. If you file late or miss the deadline, you can still claim the credit by filing an amended return on Form 1040-X, but there are time limits. Generally, you must file within three years of the original deadline.

What changed for 2024 compared to previous years

The Child Tax Credit amount remained $2,000 per child in 2024, the same as it has been since 2018. The income phase-out thresholds also stayed the same: $400,000 for married couples filing jointly and $200,000 for other filers. The refundable portion remained at $1,700 per child.

However, the rules around the credit have shifted over time. From 2021 to 2022, the refundable portion was temporarily increased to $1,800 per child, and the income thresholds were higher. Those changes expired, and the credit returned to its current form for 2023 and beyond. Tax law can change year to year, so it is worth checking the current rules each time you file.

If you received advance payments of the Child Tax Credit in prior years (such as monthly payments in 2021), those payments reduced the credit you could claim on your return. For 2024, there are no advance payments; the full credit is claimed when you file your return.

Frequently Asked Questions

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

No. Your child must have a valid Social Security number issued by the Social Security Administration. If your child was born in 2024 and does not yet have a number, you can apply for one at the hospital or through the Social Security Administration website. You can then file an amended return once the number is issued, or claim the credit on your next year's return if the child is still under 17.

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

Only one parent can claim the child as a dependent and receive the Child Tax Credit. Usually, this is the parent with primary custody (the child lived with them for more than half the year). If you and the other parent split custody evenly, the parent with the higher income typically claims the child, but you can agree otherwise. The other parent cannot claim the credit for that child.

Do I have to file a tax return to get the refundable portion of the credit?

Yes. You must file a federal income tax return to claim any part of the Child Tax Credit, including the refundable portion. If you have no income or very low income, you may not normally have to file, but filing allows you to receive the refundable credit. Use Form 1040 and Schedule 8812 to claim the refundable portion.

What happens if the IRS denies my Child Tax Credit claim?

The IRS may deny the credit if the child's Social Security number does not match IRS records, if the child does not meet the age or relationship requirements, or if someone else has already claimed the child. The IRS will send you a notice explaining why. You can respond to the notice with documentation (birth certificate, custody order, etc.) or file an amended return if you made an error.

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

Yes, if the child meets the requirements. A foster child can be claimed if they lived with you for the entire year and you have a valid court order or agreement. A grandchild or other relative can be claimed if they lived with you for more than half the year, you claim them as a dependent, and they meet the age and citizenship requirements. The relationship must be clear on your tax return.