The Child Tax Credit is a tax reduction worth up to $2,000 per child

The Child Tax Credit reduces the federal income tax you owe, dollar for dollar, for each child under 17 who lives with you. In 2024, the credit is worth up to $2,000 per child. You claim it on your tax return when you file, and it lowers your tax bill directly — not just your taxable income.

The credit phases out if your income is above a certain threshold. For 2024, the phase-out begins at $400,000 for married couples filing jointly and $200,000 for single filers. The credit reduces by $50 for each $1,000 (or fraction of $1,000) of income above that threshold.

You do not have to itemize deductions to claim the Child Tax Credit. You can take it whether you take the standard deduction or itemize. The IRS requires you to provide each child's Social Security number on your return.

Key Takeaways

  • The Child Tax Credit is worth up to $2,000 per may have access to child under 17 in 2024, and it reduces your tax bill directly.
  • You must have a valid Social Security number for each child you claim, and the child must live with you for more than half the year.
  • The credit phases out if your income exceeds $400,000 (married filing jointly) or $200,000 (single), reducing 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 the IRS.

Who can claim a child on the credit

To claim a child for the tax credit, 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 be under 17 at the end of 2024 and must have lived with you for more than half the year. Temporary absences for school, medical care, or vacation count as time living with you.

The child must be a U.S. citizen, national, or resident alien. You will need their valid Social Security number to claim them. If a child was born or adopted during 2024, they still count as long as they lived with you for the required time.

Only one person can claim each child. If parents are divorced or separated, the parent with primary custody usually claims the child, though the parents can agree in writing to let the other parent claim them instead.

How the credit reduces your tax bill

When you file your 2024 tax return, you list each may have access to child and their Social Security number on Form 1040 or your tax software. The IRS matches the number to its records. If everything is correct, the credit amount is subtracted from your total tax liability.

For example, if you owe $3,500 in federal income tax and you have two may have access to children, your credit is $4,000 (two children × $2,000). Your tax bill becomes $0, and you may receive a refund for the extra $500.

The credit is non-refundable up to the amount of tax you owe. 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 tax. The refundable portion is limited to 15% of your earned income above $2,500, with a maximum of $1,700 per child in 2024.

Income limits and how they affect your credit

Your income determines whether you receive the full $2,000 credit or a reduced amount. For 2024, the phase-out thresholds are $400,000 for married couples filing jointly, $200,000 for single filers, and $200,000 for heads of household.

If your income exceeds the threshold, the credit reduces by $50 for each $1,000 (or any part of $1,000) over the limit. For instance, if you are single with income of $201,500 and one may have access to child, your income is $1,500 over the $200,000 threshold. The credit reduces by $50 (one increment of $1,000), so your credit becomes $1,950 instead of $2,000.

The income used for this calculation is your modified adjusted gross income (MAGI), which is usually your adjusted gross income (AGI) from your tax return. Your tax software or a tax professional can calculate the exact reduction if your income is close to the threshold.

What counts as income for the phase-out

The IRS uses your modified adjusted gross income (MAGI) to determine if the credit phases out. For most people, MAGI is the same as AGI — the number on line 11 of Form 1040. This includes wages, self-employment income, interest, dividends, capital gains, and rental income.

Some types of income are added back into MAGI even if they are excluded from AGI. These include foreign earned income, foreign housing exclusions, and certain Puerto Rico income exclusions. If you have any of these, your MAGI may be higher than your AGI.

Tax-exempt interest (such as interest from municipal bonds) does not count toward MAGI for the Child Tax Credit. If you are unsure whether a specific type of income counts, your tax return software will guide you, or you can consult a tax professional.

How to claim the credit on your tax return

If you file electronically using tax software, the software will ask you questions about your children and automatically calculate the credit. You will enter each child's name, date of birth, Social Security number, and relationship to you. The software will verify that the child meets the age and residency requirements.

If you file by paper using Form 1040, you will complete Schedule 8812 (Credits for may have access to Children and Other Dependents) if you need to calculate a refundable credit. Otherwise, you enter the credit amount directly on Form 1040. The IRS instructions for Form 1040 include a worksheet to help you calculate the credit if your income is above the phase-out threshold.

File your return as soon as you have all the required information. The IRS processes returns and issues refunds throughout the tax season. If you claim a child who does not have a valid Social Security number, the IRS will reject that part of your claim.

What happens if the IRS questions your claim

The IRS may contact you if the Social Security number you provided does not match the child's name in its records, if the child's age is incorrect, or if another person has already claimed the same child. You will receive a notice explaining what information does not match.

Keep records showing the child lived with you — such as school enrollment, medical records, or lease agreements. If you are asked to verify your claim, you can send copies of these documents to the IRS address on the notice. Respond within the timeframe given in the notice.

If you and another person both claim the same child, the IRS will disallow the credit for one or both of you and may assess penalties. If this happens, contact the other person to resolve who should claim the child, or contact the IRS to explain your situation.

Frequently Asked Questions

Can I claim the credit for a child who does not have a Social Security number?

No. The IRS requires a valid Social Security number for each child you claim. If your child does not have one, you can explore for one through the Social Security Administration. Until you have the number, you cannot claim the credit.

What if my child turns 17 during 2024?

You can claim the credit for 2024 if your child was under 17 at the end of December 31, 2024. If your child turns 17 on December 31, 2024, they do not count for that year. If they turn 17 on January 1, 2025, they do not count for 2024.

Can I claim the credit if my child lived with me for only part of the year?

The child must live with you for more than half of 2024 — that is, more than 183 days. If your child lived with you for exactly 183 days or fewer, you cannot claim the credit. Temporary absences for school or medical care count as time with you.

What is the difference between the Child Tax Credit and the Additional Child Tax Credit?

The Child Tax Credit reduces your tax bill up to $2,000 per child. The Additional Child Tax Credit (refundable portion) allows you to receive money back if the credit exceeds your tax bill. In 2024, you can receive up to $1,700 per child as a refund through the Additional Child Tax Credit.

Do I lose the credit if my income is slightly above the threshold?

You do not lose the entire credit. It reduces by $50 for each $1,000 (or part of $1,000) over the threshold. If you are $100 over the threshold, the credit reduces by $50. You still receive most of the credit unless your income is much higher.