Child Tax Credit for Tax Year 2024

The Child Tax Credit (for children younger than 17 years of age on December 31) is a maximum tax credit of up to $2,200 per qualified person. The $2,200 credit amount increases based on annual inflation adjustments in the following tax years. The Child Tax Credit is intended to help offset the costs of raising a child or children. It is a partially refundable tax credit ($1,700) and a taxpayer must have at least have $2,500 in earned income. 

• Biological child, child lawfully placed for legal adoption, adopted child, stepchild, foster child, descendant of your child
• Brother or sister, half-brother or half-sister, stepbrother or stepsister, child of your brother or sister, child of your half-brother or half-sister, child of your stepbrother or stepsister, other descendant of your brother or sister, other descendant of your half-brother or half-sister, other descendant of your stepbrother or stepsister
• Parent, grandparent, other direct ancestor, stepparent, foster parent, brother or sister of your parent, son-in-law or daughter-in-law, father-in-law or mother-in-law, brother-in-law or sister-in-law
• None of the above or not related
• Detailed overview on qualifying dependents.

Meanwhile, the Credit for other Dependents age 17 or older can be worth up to $500. Here is a list of who could be a qualified person or your relationship with that person for either the Child Tax Credit or the Credit for Other Dependents:

The Child Tax Credit (CTC) can be refundable for each qualifying dependent and the taxpayer's earned income must be at least $2,500 in 2024 to be eligible for the CTC. In addition,  the modified adjusted gross income or MAGI must be below $200,000 for single filers or $400,000 for joint filers in order to qualify. After those thresholds, the credit phases out or reduces by $50 for every $1,000, or 5%.

Remember that in most cases, a tax credit is more advantageous than a tax deduction. A credit directly reduces your tax bill dollar-for-dollar, but a deduction only reduces your taxable income.

Additional Child Tax Credit

If your taxes owed are reduced to $0, and you still have some Child Tax Credit left over, you may be able to receive some or all of it as a tax refund by claiming the Additional Child Tax Credit. We know figuring this out can confuse taxpayers, but don't worry: the eFile app will automatically calculate this amount for you. Just enter your tax data and let eFile.com do your hard work. Start a free eFile.com account.

Be aware that the maximum refundable portion of the credit is $1,700 for the tax year 2024. Therefore, if your tax is $0 and your total earned income is at least $2,500, you can claim the refundable part of the credit or $1,700. Generally, the Child Tax Credit is nonrefundable; however, certain taxpayers may be entitled to a refundable Additional CTC if the following requirements apply:

• Taxpayers with more than $2,500 of taxable earned income if they have at least one qualifying child.
• Taxpayers with three or more children may also be eligible, regardless of their income.

The refundable credit is limited to $1,700 in 2024.

The Additional Child Tax Credit Schedule 8812 is generated via the eFile Tax App. Additional information and rules relating to an adopted child, foster child, or qualifying child of more than one person are also applied. If your Additional CTC was previously disallowed, you might need to complete Form 8862 and eFileIT. On your eFile account, you can add this form when entering your dependent information.

Note: The Child Tax Credit, the Additional CTC, and the Credit for Other Dependents are all completed on Schedule 8812. The eFile Tax App will complete this form based on your dependent information and eFileIT.

Child Tax Credit Qualifications

You can claim the Child Tax Credit if your income is not too high (see the income limitations for the Child Tax Credit) and if you have a child or children who qualify. Use the CHILDucator Tool above to determine if your child qualifies you to claim the credit. Our CHILDucator is a multi-year tool, so you can also use it for previous years' tax returns! See all of the requirements for the Child Tax Credit.

Dependents who can’t be claimed for the Child Tax Credit may still qualify you for the Credit for Other Dependents. This is a non-refundable tax credit of up to $500 per qualifying person. The qualifying dependent must be a U.S. citizen, U.S. national, or U.S. resident alien. You can use our DEPENDucator tool to see if your dependent qualifies for this credit.

Once you have determined if you can claim the Child Tax Credit, use the FREE tax calculator, or "TaxStimator", to calculate and estimate your tax refund (or taxes owed) for the current tax year. Then, start a free eFile.com account and prepare your tax return—it's that easy!

How to Claim the Child Tax Credit

It's easy to claim the Child Tax Credit (and the Additional Child Tax Credit) when you prepare and e-file your tax return on eFile.com. Based on your entered information, we will automatically determine if you qualify for the credit. If you qualify to claim the credit, we will then calculate your credit amount and fill out the correct forms for you to get your maximum credit.

See a detailed overview of Tax Rules for Dependents via IRS Publication 501 and more details on children and taxes.

Tax Calculators by Tax Year

Estimate your income taxes by year with the following tax refund calculators:

• 2024 tax refund calculator
• 2023 tax refund calculator
• 2022 tax refund calculator

Need more tax help? Ask free tax questions before, during, or after preparing your taxes. Also, keep up with annual tax law changes.

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