The child tax credit provides up to $2,000 per qualifying dependent child under 17. The refundable portion is worth up to $1,700 for the 2024 tax year (filed in 2025).

Income Limits:

• Married filing jointly: Up to $400,000
• All other filers: Up to $200,000
• Credit reduces by $50 for each $1,000 above these thresholds

Qualification Requirements:

• Age: Child must be under 17 at tax year end
• Relationship: Must be your child, stepchild, foster child, sibling, or their descendant
• Dependent Status: Must qualify as your dependent
• Residency: Child must live with you at least half the year
• Financial Support: You must provide at least half of child's support
• Citizenship: Child must be U.S. citizen, national, or resident alien with valid SSN
• Income: Must meet income threshold requirements

Additional Child Tax Credit (ACTC):

• Available if you owe less tax than the credit amount
• Maximum refund: $1,700 per qualifying dependent (2024)
• Must have earned income of at least $2,500 or three+ qualifying dependents
• Cannot exclude foreign-earned income via Form 2555

Claiming the Credit:

• File during 2025 tax season for 2024 tax year
• Complete Schedule 8812
• Most tax software guides you through the process
• Refunds containing ACTC cannot be released before mid-February

Future Changes:

• Credit reduces to $1,000 in 2026 unless extended
• Income thresholds will decrease:
  • Married filing jointly: $110,000
  • Other filers: $75,000

State Credits: Some states offer additional child tax credits. Check your state's taxation department for details.

Note: The child tax credit differs from the child and dependent care credit, which helps offset childcare expenses. If your dependent doesn't qualify for CTC, you may be eligible for a $500 nonrefundable credit for other dependents.

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