Child Tax Credit: Eligibility, How to Claim in 2024-2025

What is the child tax credit?

The child tax credit is a tax benefit for parents and caregivers with dependent children under 17. You can get up to $2,000 per child, but the actual amount you receive depends on your modified adjusted gross income and filing status. High earners may receive a reduced credit amount or may not qualify at all.

If the credit amount is more than the taxes you owe, you could receive a portion of the difference back as a refund through what's known as the additional child tax credit.

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How much is the 2024 child tax credit?

For the 2024 tax year (taxes filed in 2025), the credit is worth up to $2,000 per qualifying dependent child, and the refundable portion is worth up to $1,700.

How much is the 2025 child tax credit?

In 2025 (taxes filed in 2026), the child tax credit will remain at $2,000 per dependent, with a maximum refundable amount of $1,700. A key factor to watch this year is whether Congress extends the Tax Cuts and Jobs Act (TCJA) beyond 2025. If lawmakers don’t pass an extension or alternative legislation addressing the CTC, the credit is set to drop back to $1,000 in 2026, and income eligibility thresholds will also be lowered.

What is the income limit for the child tax credit?

You may be eligible for the full child tax credit amount if your modified adjusted gross income is $400,000 or below (married filing jointly) or $200,000 or below (all other filers).

If your income exceeds the limits, the credit is reduced by $50 for each $1,000 of income above the threshold until it phases out completely. Your MAGI isn't a number that you'll find on any tax forms since it needs to be calculated, but quality tax software should be able to help you determine it.

Example: If you're a single filer with two dependents and a MAGI of $150,000, you qualify for a $4,000 credit ($2,000 per child). But if your MAGI is $210,000, your credit will be reduced. Since your income exceeds the limit by $10,000, you’ll see a $500 reduction, leaving you with a $3,500 credit.

Who qualifies as a dependent for the child tax credit?

Generally, there are seven “tests” you and your qualifying child need to pass: age, relationship, dependent status, residency, financial support, citizenship and income.

1. Age: Your child must have been under the age of 17 at the end of the tax year.

2. Relationship: The child you’re claiming must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister or a descendant of any of those people (e.g., a grandchild, niece or nephew).

3. Dependent status: You must be able to properly claim the child as a dependent. The child also cannot file a joint tax return unless they file it to claim a refund of withheld income taxes or estimated taxes paid.

4. Residency: The child you’re claiming must have lived with you for at least half the year (there are some exceptions to this rule).

5. Financial support: You must have provided at least half of the child’s support during the last year. In other words, if your qualified child financially supported themselves for more than six months, they’re likely considered not qualified.

6. Citizenship: Per the IRS, your child must be a "U.S. citizen, U.S. national or U.S. resident alien," and must hold a valid Social Security number.

7. Income: Parents or caregivers claiming the credit also typically can’t exceed certain income requirements. Depending on how much your income exceeds that threshold, the credit gets incrementally reduced until it is eliminated.

Additional child tax credit

People who don't owe taxes or owe less than the credit amount may be able to get a partial refund by claiming the additional child tax credit (ACTC). The IRS figures your additional child tax credit amount by multiplying your earned income above $2,500 by 15%. You can claim that number or however much of the CTC credit you were entitled to but couldn’t fully use, whichever number is less. Good tax software should automatically do these calculations for you.

The maximum refund for the 2024 tax year is capped at $1,700 per qualifying dependent. To claim the ACTC, all of the above income and dependent criteria must be met, but there are also a few more rules:

How to claim the child tax credit

You can claim the 2024 child tax credit on the tax return you will file in 2025. You’ll also need to fill out Schedule 8812. This schedule will help you figure out your credit amount and how much of the partial refund you can claim if applicable.

Most quality tax software will guide you through claiming the child tax credit with a series of interview questions, simplifying the process and even auto-filling the forms on your behalf. If your income falls below a certain threshold, you might also be able to get free tax software through IRS Free File.

» Ready to file? See our list for the best tax software

When to expect your child tax credit refund in 2025

By law, the IRS can't release a refund for a return claiming the additional child tax credit until mid-February. This tax season, early ACTC filers should have received their refunds around March 3 if they filed electronically, opted for direct deposit and their return contained no errors^[0]

What's next for the child tax credit?

Unless Congress approves an extension, the child tax credit is set to go back to $1,000 in 2026, the amount it was before the Tax Cuts and Jobs Act of 2017 (TCJA) doubled the benefit. The income thresholds at which the child tax credit begins to phase out will also revert back to pre-TCJA figures: $110,000 for married couples filing jointly and $75,000 for all other filers^[0]

State child tax credits

In addition to the federal child tax credit, a few states, including California, Colorado and New York, also offer their own state-level CTCs that you may be able to claim when filing your state return. Visit your state's department of taxation website for more details^[0]

» MORE: Explore other tax credits for people with kids