What the Child Tax Credit gives you

The Child Tax Credit is a federal tax reduction worth up to $2,000 per child under age 17. When you file your 2024 tax return in 2025, you subtract this amount directly from the federal income tax you owe. If the credit is larger than your tax bill, you may receive the difference as a refund — but the refund is capped at $1,700 per child, with some exceptions.

The credit is not a deduction (which lowers your income). It is a credit (which lowers your tax dollar-for-dollar). That makes it worth more. A $2,000 deduction might save you $400 in taxes if you are in the 20% tax bracket. A $2,000 credit saves you $2,000 in taxes, period.

You claim the credit on your federal tax return by listing each child's name and Social Security number. The IRS matches this information to verify the child exists and that you have the right to claim them.

Key Takeaways

  • The Child Tax Credit is worth up to $2,000 per child under 17 in 2024, claimed when you file your tax return in 2025.
  • Your income determines whether you receive the full $2,000 or a reduced amount; the phase-out begins at $400,000 for married couples filing jointly and $200,000 for single filers.
  • You must have a valid Social Security number for each child and be the child's parent, legal guardian, or may have access to relative to claim the credit.
  • If your credit exceeds your tax bill, you can receive up to $1,700 per child as a refund, though this limit does not apply if you have three or more may have access to children.

Income limits and phase-out rules

The full $2,000 credit is available if your modified adjusted gross income (MAGI) is below a threshold. For 2024 tax returns, that threshold is $400,000 for married couples filing jointly and $200,000 for single filers, head of household filers, and may have access to widows or widowers.

Once your income exceeds the threshold, the credit reduces by $50 for every $1,000 (or fraction thereof) over the limit. This reduction happens automatically when you file; you do not have to calculate it yourself. For example, if you are married filing jointly with an income of $410,000, your credit reduces by $500 (one full $1,000 bracket over the threshold), so you would receive $1,500 per child instead of $2,000.

The income threshold has not changed since 2017. It does not adjust for inflation each year, so more families may see their credit reduced over time.

Who can claim a child

To claim the credit, the child must be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these (such as a niece or nephew). The child must have lived with you for more than half of 2024 and be a U.S. citizen, national, or resident alien with a valid Social Security number.

The child must be under age 17 at the end of 2024. A child who turns 17 on December 31, 2024 does not may have access to; a child who turns 17 on January 1, 2025 does. The age is fixed as of the last day of the tax year.

You must also be the child's parent or legal guardian, or meet the IRS definition of a may have access to relative. If two people could claim the same child (such as divorced parents), the IRS has a tiebreaker rule: the parent with whom the child lived for the longer part of the year claims the credit, unless that parent signs a form allowing the other parent to claim it.

Refundable versus non-refundable portions

The Child Tax Credit has two parts. Up to $1,700 per child is refundable, meaning you can receive it as a refund even if you owe no federal tax. The remaining $300 per child is non-refundable, meaning it can only reduce your tax bill to zero — you cannot receive it as a refund.

There is one exception: if you have three or more may have access to children, the entire credit becomes refundable. In that case, you can receive the full $2,000 per child as a refund if your tax bill is zero or negative.

This distinction matters most for low-income families. A family with one child and no tax bill can receive up to $1,700 as a refund. A family with three children and no tax bill can receive up to $6,000 as a refund (the full $2,000 per child).

How to claim the credit on your tax return

You claim the Child Tax Credit on Form 1040 (the main federal tax form) or through tax software. You will need each child's full name and Social Security number. The IRS cross-checks this information against Social Security Administration records, so the name and number must match exactly.

If you file electronically, the software walks you through the questions and fills in the credit automatically. If you file by paper, you list the children on Schedule 8812 (if you are also claiming the Additional Child Tax Credit) or directly on Form 1040, depending on your situation.

You do not have to do anything during the year to "register" for the credit. You claim it only when you file your return. However, if your income changes significantly during the year or you have a new child, keep records of those changes in case the IRS asks questions later.

Changes from prior years

The Child Tax Credit was temporarily expanded during the COVID-19 pandemic. In 2021 and 2022, the credit was worth up to $3,600 per child under 6 and $3,000 per child ages 6 to 16. It was also fully refundable, and some families received advance payments during the year.

In 2023, the credit returned to $2,000 per child, with the refundable portion capped at $1,700 (except for families with three or more children). The 2024 credit is the same as 2023. Congress has not extended the expanded credit amounts, so they remain in effect only for tax years 2021 and 2022.

The income thresholds ($400,000 for married couples, $200,000 for others) have been in place since 2018 and have not changed. Proposals to expand the credit or adjust the thresholds appear regularly in Congress, but no changes have been enacted for 2024.

Frequently Asked Questions

What if my child does not have a Social Security number yet?

You cannot claim the credit without a valid Social Security number for the child. If your child was born in 2024 and you have not yet received their number, you can file your return without claiming the child, then file an amended return once the number arrives. Alternatively, you can delay filing until the number is issued.

Can I claim the credit if I am not the child's biological parent?

Yes, if you are the child's legal guardian, stepparent, or a may have access to relative (such as a grandparent or aunt who provides more than half the child's support). The child must have lived with you for more than half the year, and you must meet the IRS definition of a may have access to relative. The IRS website has a detailed worksheet to determine this.

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

Your credit reduces by $50 for every $1,000 over the threshold. You may still receive a partial credit. For example, if you are single with income of $210,000, your credit reduces by $500, so you would receive $1,500 per child instead of $2,000. The reduction is automatic when you file.

Do I have to claim the credit, or can I skip it?

You do not have to claim it. Some families choose not to if they are concerned about triggering an audit or if they expect a larger refund without it (rare, but possible in specific situations). However, most families benefit from claiming it, since it directly reduces the tax owed or increases the refund.

Can I claim the credit for a child who lived with me only part of the year?

No. The child must have lived with you for more than half of 2024 (more than 183 days). Temporary absences for school, vacation, or medical treatment count as time lived with you. If the child lived with you for exactly half the year or less, you cannot claim the credit.