The Child Tax Credit is one of the most valuable credits available to families with children. For 2024, it can reduce your federal tax bill by up to $2,000 per qualifying child. Here's how it works.
How Much Is the Credit?
For 2024:
- Up to $2,000 per qualifying child under age 17
- Up to $1,700 per child is refundable as the Additional Child Tax Credit (ACTC) — meaning you can get this portion back even if you owe no tax
- The credit begins to phase out at $200,000 of income (single) or $400,000 (married filing jointly)
Who Qualifies as a Qualifying Child?
To claim the credit, the child must:
- Be under 17 at the end of the tax year
- Be your child, stepchild, foster child, sibling, or descendant of any of these
- Not have provided more than half of their own support
- Have lived with you for more than half the year
- Be claimed as your dependent
- Be a U.S. citizen, national, or resident alien
- Have a valid Social Security number
Refundable vs. Non-Refundable Portion
The Child Tax Credit is partially refundable. Here's what that means:
- The non-refundable portion reduces your tax bill to $0 but no further
- The Additional Child Tax Credit (ACTC) allows you to receive up to $1,700 per child as a refund even if you owe nothing
To get the refundable portion, you must have at least $2,500 in earned income.
The Other Child Credit: Credit for Other Dependents
If you have a dependent who doesn't qualify for the Child Tax Credit (for example, a college student you support, or a child 17 or older), you may qualify for the Credit for Other Dependents, worth up to $500 per dependent.
What Documents Do You Need?
- Social Security numbers for all children
- Birth certificates or adoption records (if applicable)
- School records or medical records to establish residence if questioned
Common Mistakes
- Claiming a child who turned 17 before December 31 (not eligible)
- Forgetting to use a qualifying child's Social Security number (an ITIN does not qualify)
- Missing the ACTC because earned income was below $2,500
- Claiming a child who was claimed by the other parent in a divorce situation
What About 2025 and Beyond?
The enhanced Child Tax Credit provisions from the American Rescue Plan have expired. Current law sets the credit at $2,000 per child through 2025. After that, the credit is scheduled to revert to $1,000 per child unless Congress acts.
Have children and not sure you're getting the full credit? Our intake form takes just a few minutes and helps us make sure nothing is missed on your return.