Child Tax Credit 2024-2025: Requirements, Who Qualifies

The child tax credit (CTC) is a tax benefit that is available to people with dependent children under 17. Eligibility depends on the child's age, the relationship to the caregiver and filing status.

The base credit is worth $2,000, but it phases out based on modified adjusted gross income (MAGI) levels, meaning high earners may receive a smaller credit or be ineligible.

As a nonrefundable tax credit, the CTC reduces taxes owed dollar-for-dollar, though some people may qualify for a partial refund.

For 2024, the child tax credit is worth up to $2,000 per qualifying dependent child. The refundable portion, also known as the additional child tax credit, is worth up to $1,700.

You're eligible for the full credit amount if your MAGI is $400,000 or below (married filing jointly) or $200,000 or below (all other filers). If your MAGI exceeds the above limits, the credit is reduced by $50 for each $1,000 of income above the threshold until it phases out completely.

The 2024 child tax credit is claimed on tax returns filed in 2025.

» Curious about other tax breaks? Here's a list of common tax deductions

The IRS recently announced the child tax credit amounts for the 2025 tax year, which will apply to taxes filed in April 2026. For 2025, the maximum credit limit remains $2,000, with a maximum refundable portion of $1,700.

The child tax credit income thresholds will also remain the same at $400,000 for those married filing jointly and $200,000 for all other filers.

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 doubled the credit. The income thresholds at which the child tax credit begins to phase will also revert back to pre-2017 figures. That is, $110,000 for married couples filing jointly and $75,000 for all other filers^[0]

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.

If you qualify for the CTC but can't take full advantage because you don't owe taxes or owe less than your credit amount, you may be able to get a partial refund by claiming the additional child tax credit. To claim the ACTC, all of the above income and dependent criteria must be met, but there are also a few more rules:

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. But keep in mind that the maximum refund for the 2024 tax year is capped at $1,700 per qualifying dependent. If you have three or more dependent children, the math can be more complex. See Schedule 8812 for more details.

You can claim the 2024 child tax credit on the tax return (Form 1040) you will file in 2025.

You’ll also need to fill out Schedule 8812 (“Credits for Qualifying Children and Other Dependents”), which is submitted with your 1040. 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 guides 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.

» MORE: Additional options for free tax filing

By law, the IRS can't release a refund for a return claiming the additional child tax credit until mid-February. If you file by paper, the wait times generally increase. The agency's "Where's My Refund" tool can also help you get of sense of what's going on with your funds.

An error on your tax form can delay your refund or the child tax credit portion of your refund. In some cases, the IRS could also deny the entire credit.

If the IRS denies your CTC claim:

• You must pay back any CTC amount you’ve been paid in error, plus interest.

• You might need to file Form 8862, "Information To Claim Certain Credits After Disallowance," before you can claim the CTC again.

• If the IRS determines that your claim for the credit is erroneous, you may be on the hook for a penalty of up to 20% of the credit amount claimed.

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