How Much Is the Child Tax Credit in Georgia?

A child tax credit offers financial relief to families with children. These credits can reduce a family’s tax liability. Understanding how these credits apply in Georgia involves looking at both state and federal tax provisions.

Is There a Georgia Child Tax Credit?

Georgia did not offer a state-level child tax credit for many years. A new state tax credit was introduced for families with young children. Starting with the 2026 tax year, Georgia taxpayers may claim an income tax credit of $250 for each qualifying child under the age of six.

Georgia also expanded its child and dependent care tax credit. This existing credit, which helps with childcare expenses, increased its match of the federal credit from 30% to 50%.

Understanding the Federal Child Tax Credit

The federal Child Tax Credit (CTC) is a tax benefit available to eligible families. For the 2024 tax year, this credit can be worth up to $2,000 for each qualifying child. This amount directly reduces a taxpayer’s federal income tax liability.

To qualify for the federal CTC, a child must meet several criteria. The child must be under 17 years old at the end of the tax year. They must also be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of these, such as a grandchild. The child must not have provided more than half of their own support for the tax year and must have lived with you for more than half of the year. Additionally, the child must be claimed as a dependent on your tax return, not file a joint return, and possess a Social Security number.

The full amount of the federal Child Tax Credit is available to taxpayers with an Adjusted Gross Income (AGI) below certain thresholds. For the 2024 tax year, the credit begins to phase out for single filers, heads of household, and qualifying widow(er)s with an AGI exceeding $200,000. For those married filing jointly, the phase-out begins at an AGI of $400,000. The credit amount is reduced by $50 for every $1,000 that the taxpayer’s AGI exceeds these thresholds.

A portion of the federal Child Tax Credit can be refundable, meaning eligible taxpayers may receive money back even if they owe no federal income tax. This refundable portion is known as the Additional Child Tax Credit (ACTC). For the 2024 tax year, the ACTC can provide up to $1,700 per qualifying child. To be eligible for the ACTC, taxpayers must have earned income exceeding $2,500. The refundable amount is generally calculated as 15% of the earned income above this $2,500 threshold, up to the maximum refundable limit.

Claiming the Federal Credit as a Georgia Resident

Georgia residents claim the federal Child Tax Credit when they file their annual federal income tax return. This credit is not claimed on a separate state form, as it is a federal tax provision. Taxpayers must complete and submit Form 1040, U.S. Individual Income Tax Return, and attach a Schedule 8812, Credits for Qualifying Children and Other Dependents.

Taxpayers need to provide specific information. This includes the Social Security number for each qualifying child, which must be valid for employment. Other relevant details about the child, such as their relationship to the taxpayer and residency, are also necessary for proper tax preparation. The calculations for the credit, including any phase-outs or refundable portions, are performed using the information provided on these forms.

There is no separate state-specific process for Georgia residents to claim the federal Child Tax Credit. The entire claim process occurs through the federal tax system. Taxpayers can typically prepare and file their federal returns using tax software, which guides them through the necessary forms and calculations, or they can work with a qualified tax professional.