What the Child Tax Credit does and who can claim it
The Child Tax Credit is a dollar-for-dollar reduction in the federal income tax you owe. For each may have access to child, you subtract the credit amount directly from your tax bill — not from your income. This means a $2,000 credit cuts your tax by $2,000, rather than reducing the income that gets taxed.
You claim the credit on your federal tax return using Form 1040 and Schedule 8812 (or Schedule 1 if you have other credits). The IRS matches the Social Security numbers you list to verify the children are real and that you have not already claimed them on another return.
The credit amount changes year to year by law. For the 2024 tax year, the credit is $2,000 per child under age 17 at the end of the year. The law that set this amount is scheduled to expire after the 2025 tax year, which means the credit may change for 2026 and beyond.
Key Takeaways
- The Child Tax Credit is $2,000 per may have access to child for the 2024 tax year, and it reduces your federal tax dollar-for-dollar.
- You must have a valid Social Security number for each child you claim, and the child must be under 17 at the end of the tax year.
- Your income determines whether you get the full credit or a reduced amount — the credit begins to phase out at $400,000 for married couples filing jointly and $200,000 for single filers.
- If the credit is larger than the tax you owe, you may receive the difference as a refund through the Additional Child Tax Credit, up to $1,700 per child for 2024.
- You report the credit on your tax return; the IRS does not send it to you automatically even if you received advance payments in prior years.
Who can claim a child on the Child Tax 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 live with you for more than half the year, be a U.S. citizen, national, or resident alien, and have a valid Social Security number issued before the tax return is filed.
The child must be under age 17 on December 31 of the tax year. A child who turns 17 on December 31 does not count; a child who turns 17 on January 1 of the following year does count.
You must be the child's parent, legal guardian, or meet the IRS definition of a may have access to relative. If two adults could claim the same child, only one can claim the credit on a given return. Divorced or separated parents typically follow the custody rules: the parent with primary custody claims the child, unless that parent signs a form releasing the claim to the other parent.
Income limits and how the credit phases out
The full $2,000 credit is available if your modified adjusted gross income (MAGI) is below a threshold. For the 2024 tax year, the threshold is $400,000 for married couples filing jointly, $200,000 for single filers, and $200,000 for heads of household.
Once your income exceeds the threshold, the credit reduces by $50 for each $1,000 (or fraction of $1,000) over the limit. For example, if you are a single filer with MAGI of $201,000, you are $1,000 over the $200,000 threshold. Your credit reduces by $50, so you receive $1,950 per child instead of $2,000.
The phase-out calculation can be complex if your income is close to the threshold. Most tax software calculates this automatically, but you can also work through it manually using the worksheet in the instructions to Form 1040.
The Additional Child Tax Credit and refundable portions
The Child Tax Credit is partially refundable, meaning you can receive money back even if you owe no tax. The refundable portion is called the Additional Child Tax Credit and is limited to $1,700 per child for the 2024 tax year.
Here is how it works: suppose you have two children and the credit totals $4,000, but you owe only $2,500 in federal tax. The credit first reduces your tax to zero. The remaining $1,500 of unused credit can be refunded to you, but only up to $1,700 per child. Since you have two children, you can receive up to $3,400 in refundable credit, so you would receive the full $1,500.
To receive the refundable portion, you must have earned income — wages, self-employment income, or certain other income — of at least $2,500. If your earned income is less than $2,500, the refundable portion is limited to your earned income.
How to report the credit on your tax return
You report the Child Tax Credit on Form 1040, Schedule 8812 (or Schedule 1 if you have other credits to report). You will need the following information for each child:
- The child's full legal name as it appears on their Social Security card.
- The child's Social Security number.
- The child's relationship to you (son, daughter, stepchild, foster child, etc.).
- The number of months the child lived with you during the year.
If you are using tax software, the program will ask you these questions and calculate the credit automatically. If you are preparing the return by hand, follow the worksheet in the Form 1040 instructions to determine the credit amount and enter it on the appropriate line.
Double-check the Social Security numbers before you file. A mismatch between the name and number, or a number that does not exist, will cause the IRS to disallow the credit and may delay your refund while they investigate.
Advance Child Tax Credit payments and reconciliation
In some years, the IRS has sent advance payments of the Child Tax Credit to taxpayers before they file their return. These payments were based on information from your prior-year return or on information you provided to the IRS through a portal.
If you received advance payments, you must reconcile them on your current-year return. This means you report the total advance payments you received and compare them to the credit you are may have access to to based on your current-year income and circumstances. If you received more than you were may have access to to, you owe the difference back to the IRS. If you received less, the difference is added to your refund.
Reconciliation happens automatically on your tax return when you claim the credit. You will report the advance payments on Schedule 8812, and the IRS will calculate whether you owe money back or are owed more.
Common mistakes and what to watch for
The most frequent error is listing an incorrect Social Security number or a number that has not been issued. The IRS will not allow the credit if the number does not match IRS records. Before you file, confirm the number with the child's Social Security card or a recent Social Security statement.
Another common mistake is claiming a child who does not meet the age requirement. Remember that the child must be under 17 on December 31 of the tax year. A child who is 17 on that date does not count, even if they were 16 for most of the year.
Divorced or separated parents sometimes both claim the same child, which triggers an IRS audit. Only one parent can claim the credit per tax year. If you and the other parent disagree about who should claim the child, the parent with primary custody has the right to claim unless they sign a release form.
Finally, do not forget to report advance payments you received. If you received payments but do not report them on your return, the IRS will catch the discrepancy and may reduce your refund or send you a bill.
Frequently Asked Questions
Can I claim the Child Tax Credit if the child does not have a Social Security number?
No. The child must have a valid Social Security number issued before you file your return. If your child was born late in the year and the number has not arrived, you can file your return without claiming the child and then file an amended return once the number is issued. Some parents use an Individual Taxpayer Identification Number (ITIN) for a child who is not a U.S. citizen, but the IRS does not allow the Child Tax Credit for children with an ITIN.
What if my child turned 17 on December 31?
The child does not count for the Child Tax Credit. The rule is that the child must be under 17 on December 31 of the tax year. A child who is 17 on that date is not may be able to access, even if they were 16 for the entire rest of the year.
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 the year — that is, more than 183 days. If the child lived with you for exactly 183 days or fewer, you cannot claim the credit. Days the child is temporarily away at school, camp, or visiting the other parent still count as living with you if the child's main home is with you.
What happens if I received advance payments but my income changed?
You reconcile the payments on your current-year return. If your income increased and you no longer may have access to for the full credit, you will owe back some or all of the advance payments. If your income decreased and you now may have access to for a larger credit, the difference will be added to your refund. The reconciliation is automatic when you file.
Can I claim the credit for a foster child?
Yes, if the foster child lived with you for the entire year and you have a valid Social Security number for them. Foster children are treated the same as biological children for the Child Tax Credit, as long as the placement is by an authorized agency or court order.