The Child Tax Credit, explained
The Child Tax Credit can put real money back in your pocket if you have kids. Here's how it works and how to claim it.
Key takeaways
- Worth up to $2,000 per child under 17 for 2024
- Part of the credit may come back as a refund
- You can qualify even if your income is very low
- File a return to claim it — free help is available
If you have children, the Child Tax Credit (CTC) is one of the most valuable tax benefits available to you. It can lower your tax bill or even put money back in your pocket — even if you don't owe any taxes.
For the 2024 tax year, the credit is worth up to $2,000 per qualifying child under age 17. That's per child, so two kids could mean up to $4,000 in potential credit.
Here's the part many people miss: part of the credit is refundable. That means if the credit is more than what you owe in taxes, you may get some of the difference back as a refund. This refundable portion is called the Additional Child Tax Credit (ACTC), and it can be worth up to $1,700 per child for 2024.
To qualify, your child generally needs to meet these basics: - Be under 17 at the end of the tax year - Be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these - Have lived with you for more than half the year - Have a valid Social Security number - Not have provided more than half of their own financial support
Your income also affects how much you can claim. The full credit starts to phase out at $200,000 for single filers and $400,000 for married couples filing jointly. If you earn less than those amounts, you likely qualify for the full credit.
To claim it, just file a federal tax return — even if your income is low. Use Form 1040 and attach Schedule 8812. Tax software will usually walk you through this step by step. If your income is $67,000 or less, you may be able to file for free through the IRS Free File program at irs.gov.
If you don't usually file taxes because your income is very low, it's still worth filing. You might be leaving real money on the table.
One more thing: tax laws can change. The current credit amounts are set under current law, but Congress can adjust them. Always check the IRS website or talk to a free tax preparer before filing.
Free tax help is available through the IRS VITA program (Volunteer Income Tax Assistance). Search for a location near you at irs.gov/vita. These are trained volunteers who can help you file at no cost.
Related FAQs
Common questions about this topic, answered simply.
What if I don't owe any taxes — can I still get the Child Tax Credit?
Yes, you may still get money back. The refundable part of the credit, called the Additional Child Tax Credit, can come back to you as a refund even if you owe zero taxes. You do need to file a tax return to claim it, though.
Does my child need a Social Security number to qualify?
Yes. Your child must have a valid Social Security number issued before the due date of your tax return. A child with only an Individual Taxpayer Identification Number (ITIN) does not qualify for the Child Tax Credit.
What if I share custody of my child — who gets to claim the credit?
Generally, the parent the child lived with for more than half the year claims the credit. In some cases, divorced or separated parents can agree in writing to let the other parent claim it. A tax professional or the IRS instructions for Form 8332 can help you sort this out.
How do I actually claim the Child Tax Credit when I file?
File a federal tax return using Form 1040 and include Schedule 8812. Most free tax software will ask you questions about your children and automatically calculate the credit for you. If you need help, the IRS VITA program offers free in-person filing assistance.
My income was very low last year. Should I still bother filing?
Absolutely. Even with very low or no income, filing a return may qualify you for a refund through the refundable portion of the Child Tax Credit. Many families who skip filing miss out on money they're entitled to receive.
Could the Child Tax Credit amount change in future years?
Yes, it can. Congress has changed the credit amount and rules several times over the years. It's always a good idea to check the IRS website or speak with a free tax preparer before you file to make sure you have the most current information.
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