The Child Tax Credit is for people who support children and meet income and relationship tests

The Child Tax Credit reduces the federal income tax you owe, dollar for dollar, based on how many children you support. For the 2024 tax year, the credit is worth up to $2,000 per child under age 17. You do not receive it as a refund unless you meet additional rules — it first erases any tax you owe, and only then can the remaining amount come back to you as a refund.

To claim the credit, you must be the child's parent, stepparent, foster parent, sibling, or other relative who lived with the child for more than half the year. The child must be a U.S. citizen, national, or resident alien with a valid Social Security number. Your income must fall below a threshold that depends on your filing status — the limit phases out at $400,000 for married couples filing jointly, $200,000 for single filers, and $240,000 for heads of household.

The credit is not automatic. You claim it on your tax return by listing each child's name, Social Security number, and relationship to you. If you do not file a return, you do not receive the credit.

Key Takeaways

  • The Child Tax Credit is worth up to $2,000 per child under age 17 and reduces your federal income tax dollar for dollar.
  • You must have lived with the child for more than half the year and be their parent, stepparent, foster parent, or may have access to relative.
  • The child must have a valid Social Security number and be a U.S. citizen, national, or resident alien.
  • Your income must be below $400,000 (married filing jointly), $200,000 (single), or $240,000 (head of household) to claim the full credit.
  • You claim the credit on your tax return using Form 1040 and Schedule 8812; it does not come to you automatically.

Income limits and how they reduce your credit

The credit begins to shrink once your income exceeds the threshold for your filing status. For every $1,000 (or fraction of $1,000) over the limit, the credit decreases by $50 per child. This means the reduction happens in steps, not smoothly — if you are $1 over the threshold, you lose $50 per child.

If you are married filing jointly with income of $420,000, you are $20,000 over the $400,000 limit. That $20,000 rounds up to 20 increments of $1,000, so your credit shrinks by $1,000 per child (20 × $50). A family with two children would lose $2,000 in total credit. If your income is high enough, the credit can disappear entirely.

Your income for this purpose is your modified adjusted gross income (MAGI), which is usually your adjusted gross income from your tax return. The IRS publishes the exact thresholds each year; they have remained the same since 2018, but that can change.

Who counts as your child for this credit

The child must be your may have access to child, which means you have a specific legal or family relationship to them. A biological child, stepchild, adopted child, or foster child all count. A sibling, half-sibling, or descendant of any of these (such as a grandchild or niece) also counts if they lived with you.

The child must have lived with you for more than half the tax year. This means more than 183 days in 2024. Temporary absences for school, medical treatment, military service, or vacation do not break this rule — the child is still considered to have lived with you. However, if the child spent more than half the year with the other parent or in another home, you cannot claim them.

The child must be under age 17 at the end of the tax year. A 17-year-old on December 31, 2024, does not count for the 2024 credit. A 16-year-old on that date does count.

The child must be a U.S. citizen, national, or resident alien. They must have a valid Social Security number — an Individual Taxpayer Identification Number (ITIN) does not work for this credit. You will need their Social Security number to claim them.

When two people could claim the same child

If parents are divorced or separated, only one can claim the child for the credit. Usually this is the parent who has custody for the greater part of the year. If custody is split evenly, the parent with the higher income can claim the child unless the other parent has a written agreement giving them the right.

If you are not the parent but you support a child who lives with you — for example, you are a grandparent or aunt raising a grandchild or niece — you can claim the credit if the child meets all the other tests. However, if the child's parent also lives in your home and could claim the child, the parent's right takes priority. The IRS will disallow your claim if both of you report the same child.

If you and another person both claim the same child by mistake, the IRS will contact you. You may owe back tax, interest, and a penalty. It is your responsibility to make sure only one person claims each child.

How to claim the credit on your tax return

You claim the Child Tax Credit on Form 1040 (the main individual income tax return) and Schedule 8812 (if your credit is reduced by income limits or if you are claiming the Additional Child Tax Credit). You will need each child's full name, date of birth, and Social Security number.

If you are using tax software, it will ask you questions about each child and fill in the forms for you. If you are filing by hand, you list the children on Form 1040 and then calculate any reduction due to income on Schedule 8812.

The credit is not sent to you before you file. You do not receive it unless you file a return. If you have no income and no tax to pay, you still may want to file to claim the credit — some of it can come back to you as a refund under the Additional Child Tax Credit rules.

The Additional Child Tax Credit and refundable portions

The regular Child Tax Credit is non-refundable, meaning it can only reduce your tax to zero. If the credit is larger than the tax you owe, you lose the extra amount — it does not come back to you as a refund.

However, the Additional Child Tax Credit (also called the refundable portion) allows you to receive up to $1,700 per child as a refund, even if you owe no tax. This is claimed on Schedule 8812. To receive the refundable portion, your earned income must be at least $2,500 for the year. Earned income includes wages, self-employment income, and some other sources, but not investment income or government benefits.

If you have three children and a $4,000 tax credit but only $1,500 in tax to pay, the credit erases your $1,500 tax. You have $2,500 left in credit. The Additional Child Tax Credit lets you receive up to $1,700 per child as a refund — so you could receive up to $5,100 back, though your remaining credit is only $2,500, so you would receive $2,500.

Special situations: Adoption, foster care, and non-citizen children

If you adopted a child, the child counts for the credit once the adoption is final. If the adoption is still pending, the child does not count. You do not need to have had the child for the full year — an adoption that becomes final partway through the year still counts for that year's credit.

If you are a foster parent, the child counts if they lived with you for more than half the year and you have the legal relationship of foster parent. A child you are informally caring for but who is not legally placed with you by the state does not count.

A child who is not a U.S. citizen cannot be claimed for this credit, even if they have an ITIN or a work permit. The child must be a citizen, national, or resident alien. This is one of the strictest rules for the credit and does not have exceptions.

Frequently Asked Questions

Can I claim the credit if I do not file a tax return?

No. The credit only exists on your tax return. If you do not file, you do not receive it. However, if you have little or no income, you may still want to file to claim the credit and the Additional Child Tax Credit refund.

What if the child's other parent claims them first?

The IRS will contact you. Only one person can claim each child. If you believe you have the right to claim the child, you can file an amended return and provide documentation of custody. If both of you claim the child, the IRS will disallow one claim and may assess penalties.

Does the child need to live with me the entire year?

No, only more than half the year (more than 183 days in 2024). School, medical treatment, military service, and temporary visits to the other parent do not count against this time. However, if the child spent the majority of the year elsewhere, they do not count.

Can I claim a child who has an ITIN instead of a Social Security number?

No. The child must have a valid Social Security number. An ITIN does not work for the Child Tax Credit. If the child is a resident alien, they can obtain a Social Security number and then be claimed.

What happens if my income is above the limit?

Your credit shrinks by $50 for every $1,000 (or part of $1,000) over the threshold. At very high incomes, the credit can disappear entirely. You calculate the reduction on Schedule 8812 when you file.