The Basic Rule: You Must Have a may have access to Child and Meet Income Limits

The Child Tax Credit is a tax reduction you can claim if you have a child under 17 at the end of the tax year and your income falls below a threshold set by the IRS. The credit reduces the federal income tax you owe, dollar for dollar. You do not have to be the child's biological parent — you can claim the credit if you are a legal guardian, grandparent raising the child, or adoptive parent, as long as the child lived with you for more than half the year.

The income limit depends on your filing status. For 2024, the credit begins to reduce if your modified adjusted gross income (MAGI) exceeds $400,000 for married couples filing jointly, $200,000 for single filers, and $200,000 for heads of household. The credit itself is $2,000 per may have access to child, though this amount can change year to year.

You must also have a valid Social Security number for the child and claim them as a dependent on your tax return. The child must be a U.S. citizen, national, or resident alien.

Key Takeaways

  • You can claim $2,000 per child under 17 if your income is below $400,000 (married filing jointly) or $200,000 (single or head of household).
  • The child must have lived with you for more than half the year and have a valid Social Security number.
  • You can claim the credit if you are the parent, legal guardian, grandparent, or adoptive parent — not just biological parents.
  • If you have little or no tax liability, you may still receive part of the credit as a refund through the Additional Child Tax Credit.

Income Limits and Phase-Out Rules

The credit does not disappear all at once when you cross the income threshold. Instead, it reduces by $50 for every $1,000 (or fraction thereof) of income above the limit. This means if you earn $1 over the threshold, you lose $50 of the credit.

Your MAGI is the starting point for calculating this. For most people, MAGI is the same as adjusted gross income (AGI) shown on your tax return. If you have foreign earned income or certain other sources, MAGI may be higher. The IRS instructions for the form you file will specify how to calculate it.

If the phase-out reduces your credit to zero, you cannot claim it that year. However, you can still claim the Additional Child Tax Credit if you have earned income, which may result in a refund even if you owe no tax.

What "may have access to Child" Means in Practice

A may have access to child must be your son, daughter, stepchild, foster child, sibling, or descendant of any of these (such as a niece or nephew). The child must be under 17 at the end of the tax year — turning 17 on December 31 counts as 17 for that year. The child must have lived with you for more than half the tax year (more than 183 days), and you must provide more than half their financial support for the year.

The child cannot be a may have access to child of another person for tax purposes. This matters when parents are divorced or separated. Generally, the parent with custody for the greater part of the year claims the child, unless that parent signs a form releasing the claim to the other parent.

If you are claiming a foster child, the child must be placed with you by an authorized placement agency or court order. The child does not have to be a U.S. citizen, but must have a valid Social Security number or Individual Taxpayer Identification Number (ITIN).

The Additional Child Tax Credit: Getting Money Back

If the Child Tax Credit is larger than the tax you owe, you may not be able to use the full credit. However, the Additional Child Tax Credit (also called the Refundable Child Tax Credit) allows you to receive up to $1,700 per child as a refund, even if you owe no federal income tax.

To claim the Additional Child Tax Credit, you must have earned income during the year — wages, self-employment income, or certain other sources. The amount you can receive is limited to 15 percent of your earned income above $2,500, up to the $1,700 maximum per child. You claim this on Schedule 8812 when you file your return.

This is one reason to file a tax return even if your income is very low. If you have three children and little income, the refund from the Additional Child Tax Credit can be several thousand dollars.

Dependent Verification and Social Security Numbers

The IRS requires a valid Social Security number for each child you claim. The number must be issued before the tax return is filed, and it must match the name and date of birth you report. If you claim a child with an incorrect or mismatched number, the IRS will reject the credit and may delay your refund.

If your child does not yet have a Social Security number, you can request one from the Social Security Administration before filing. Newborns can receive a number at the hospital, or you can apply at a local Social Security office. You will need the child's birth certificate and proof of your identity.

If you are adopting a child and do not yet have a Social Security number, you can use a temporary number issued by the IRS (called an ATIN) to claim the credit in the year of adoption, even if the adoption is not yet final. You will need to provide documentation of the adoption process.

Custody, Divorce, and Who Can Claim the Child

When parents are divorced or separated, only one parent can claim the child as a dependent and receive the Child Tax Credit. The IRS generally allows the parent with custody for the greater part of the year to claim the child, regardless of who pays support.

If both parents have equal custody, the parent with the higher income can claim the child unless the other parent has a written agreement giving them the right. The parent who does not claim the child can still claim the Child and Dependent Care Credit if they paid for childcare to enable them to work.

If you are the non-custodial parent and want to claim the child, you will need a signed Form 8332 from the custodial parent releasing the claim to you. This form must be attached to your tax return. Without it, the IRS will reject your claim for the credit.

Special Situations: Adoption, Foster Care, and Guardianship

If you adopted a child during the year, you can claim the Child Tax Credit for that child in the year of adoption if the child lived with you for the required time and you provided support. You do not have to wait for the adoption to be final. You will need to provide the child's Social Security number or ATIN.

If you are a legal guardian or grandparent raising a child, you can claim the credit if the child meets all other requirements — lived with you for more than half the year, you provided more than half their support, and the child is not claimed by another person. The child does not have to be related to you by blood if you have legal guardianship.

If a child is in foster care and placed with you by a state or licensed agency, you can claim the credit. The child must still have a valid Social Security number or ITIN and meet the other requirements. Foster parents sometimes share custody with biological parents; in those cases, only one person can claim the child.

Frequently Asked Questions

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

No. The child must be under 17 at the end of the tax year (December 31). If your child turned 17 on any date in the year, they do not count as a may have access to child for the credit that year. However, you may be able to claim other credits, such as the Credit for Other Dependents.

What if I share custody with the other parent?

Only one parent can claim the child. If you have equal custody, the parent with higher income usually claims the child unless there is a written agreement otherwise. If the other parent has primary custody, they can claim the child unless they sign Form 8332 releasing the claim to you.

Do I need to report the credit when I file my taxes?

Yes. You report the Child Tax Credit on Schedule 8812 (if you are also claiming the Additional Child Tax Credit) or directly on the main tax form. You must provide the child's name, date of birth, and Social Security number. The IRS will verify this information and may delay your refund if there are errors.

Can I claim the credit if my child has no Social Security number yet?

Not until the child has a number. If you are expecting a newborn, you can request a Social Security number at the hospital or apply at a local Social Security office. For adopted children, you can use a temporary ATIN while waiting for a permanent number.

What happens if my income goes over the limit partway through the year?

Your income for the entire year determines whether the credit reduces. If your MAGI for the year exceeds the threshold, the credit reduces by $50 for every $1,000 over the limit. You calculate this when you file your return based on your total income for the year.