How Much Is the IRS Giving Per Child?
This guide details the 2024 Child Tax Credit, explaining how your family's circumstances and income determine the final amount you receive from the IRS.
The Child Tax Credit (CTC) is a federal tax benefit designed to help offset the costs of raising a family. For the 2024 tax year, filed in 2025, the rules and credit amounts have reverted to their pre-2021 levels, following a temporary expansion under the American Rescue Plan. This article provides a breakdown of the current credit amount, the qualifications a child must meet, and the process for claiming it.
2024 Child Tax Credit Amount
For the 2024 tax year, the maximum Child Tax Credit is $2,000 for each qualifying child. This credit directly reduces a taxpayer’s tax liability on a dollar-for-dollar basis. For instance, a $3,000 tax bill could be lowered to $1,000 by claiming the full credit for one child. The credit is also partially refundable, meaning a taxpayer may receive a portion back as a refund even if their tax liability is zero. This refundable part is known as the Additional Child Tax Credit (ACTC).
For 2024, the maximum refundable amount through the ACTC is $1,700 per child, an increase from the previous year due to an inflation adjustment. To claim the ACTC, a taxpayer must have earned income of at least $2,500. The refundable amount is calculated as 15% of earned income exceeding this $2,500 threshold, capped at the $1,700 per-child maximum.
Eligibility Requirements for the Qualifying Child
To claim the Child Tax Credit, each child must pass several tests defined by the IRS. These requirements focus on the child’s age, relationship to the taxpayer, residency, financial support, and citizenship status. Each of the following conditions must be met for the child to be considered a qualifying child.
- Age: The child must be under the age of 17 at the end of the tax year, meaning they did not turn 17 on or before December 31, 2024.
- Relationship: The child must be the taxpayer’s son, daughter, stepchild, eligible foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of these individuals, such as a grandchild, niece, or nephew.
- Residency: The child must have lived with the taxpayer for more than half of the year. Exceptions are made for temporary absences, such as for school, vacation, or medical care.
- Support: The child cannot have provided more than half of their own financial support during the tax year.
- Citizenship: The child must be a U.S. citizen, a U.S. national, or a U.S. resident alien.
- Social Security Number: The child must have an SSN that is valid for employment in the United States and was issued before the due date of the tax return, including extensions.
Taxpayer Income Limitations
The amount of the Child Tax Credit a taxpayer can receive is affected by their income. The IRS uses Modified Adjusted Gross Income (MAGI) to determine eligibility, which for most taxpayers is the same as their Adjusted Gross Income (AGI).
The credit begins to phase out for taxpayers with MAGI above certain thresholds. For the 2024 tax year, the income threshold is $400,000 for those who are married filing a joint tax return. For all other filing statuses, including single and head of household, the threshold is $200,000.
If a taxpayer’s MAGI exceeds these amounts, the total credit is reduced by $50 for each $1,000 (or fraction thereof) over the threshold. For example, a married couple filing jointly with one qualifying child and a MAGI of $410,400 is $10,400 over the limit. This excess results in a total reduction of $550, lowering their initial $2,000 credit to $1,450.
How to Claim the Child Tax Credit
Claiming the Child Tax Credit is part of filing an annual federal income tax return. The process requires specific forms and careful entry of information to ensure the correct credit amount is calculated.
The primary forms are the standard Form 1040, U.S. Individual Income Tax Return, and the attached Schedule 8812, Credits for Qualifying Children and Other Dependents. Schedule 8812 is the specific form used to calculate the exact amount of the Child Tax Credit and the Additional Child Tax Credit.
The process begins with gathering the necessary information for each qualifying child, including their full name and valid Social Security Number. The taxpayer then completes Schedule 8812, using their MAGI to determine any income limitations. The final credit amount is transferred to Form 1040 to reduce the taxpayer’s tax liability.