Child Tax Credit 2024: How Much Is It and Who Qualifies? (2024)

If you have a child -- even one that was born in 2023 -- you may be eligible for the child tax credit. If you qualify, the credit could reduce how much you owe on your taxes. As of right now, only a portion is refundable this year. We'll explain the requirements that must be met to be eligible for the child tax credit in 2024.

This story is part of Taxes 2024, CNET's coverage of the best tax software, tax tips and everything else you need to file your return and track your refund.

The child tax credit is still at its pre-pandemic amount, but lawmakers are working on restoring the expanded child tax credit. We'll explain what's going on below.

We'll help you find out if you're eligible for the child tax credit in 2024 and how much money you could get. For more tax tips, learn which divorced parent gets to claim the child tax credit and all the tax breaks you can get from your home.

Child Tax Credit 2024: How Much Is It and Who Qualifies? (1)

How much is the child tax credit in 2024?

The maximum tax credit available per child is $2,000 for each child under 17 on Dec. 31, 2023. Only a portion is refundable this year, up to $1,600 per child.

For tax year 2021, the expanded child tax credit was $3,600 for children 5 and under, and $3,000 for children ages 6 to 17. That's no longer the case. The age requirement was also temporarily extended to under 18 on Dec. 31, but that's also gone.

Who is eligible for the child tax credit?

To be eligible for the tax break this year, you and your familymust meet these requirements:

  • You have a modified adjusted gross income, or MAGI, of $200,000 or less, or $400,000 or less if you're filing jointly.
  • The child you're claiming the credit for was under the age of 17on Dec. 31, 2023.
  • They have a valid Social Security number.
  • They are your legally recognized child, stepchild, foster child, sibling, half-brother or half-sister, or a descendant of one of these categories (like a grandchild or niece or nephew).
  • They have contributed no more than half of their own financial support in the relevant tax year.
  • They have lived with you for over half the year.
  • You are claiming them as a dependent on your tax return.
  • You are a US citizen or resident alien.

Go to the IRS website for more information.

If your MAGI is higher than the income limits, the amount of child tax credit you receive will decrease by $50 for every $1,000 above the limit. For example, a MAGI of $210,000 as an individual would allow you to claim $1,500 for each eligible child.

The child tax credit is phased out completely at $240,000 for individuals and $480,000 for married couples filing jointly.

Note: If you search online for information on the child tax credit, you may come across details on the 2021 expanded tax breaks, so double-check that you're viewing the most recent information.

Mark Steber, chief tax information officer at Jackson-Hewitt, says many government sites keep historical information live "for people playing catch-up with their taxes."

Will Congress expand the child tax credit in 2024?

As part of a massive COVID-19 aid package, Congress in 2021 temporarily expanded the child tax credit,which helped drive child poverty to a record low. Congress didn't extend the expanded credit in 2022, and the credit returned to its pre-pandemic rate.

This year, Congress is working to expand the credit again, pushing to have a deal in place byJan. 29, when the IRS begins accepting tax returns this year.According to a Washington Post report, the plan -- if approved -- would allow the lowest-income families to claim the credit for each child.

If approved, the refundable child tax credit amount would increase by $200 for the 2023 tax year, according to Kiplinger. For the 2024 and 2025 tax years, it would increase by $100.

How do I claim the child tax credit?

You can claim the child tax credit by entering your eligible children on your Form 1040and attaching a completed Schedule 8812, Credits for Qualifying Children and Other Dependents.

What if the credit is more than what I owe in taxes?

The child tax credit this year is not fully nonrefundable. That means that if your tax liability exceeds what you get from the credit, you forfeit the difference.

You may still be able to claim the additional child tax credit, which refunds up to $1,600 per child. (To see if you qualify for the additional child tax credit, fill out the worksheet for IRS Form 8812.)

If you paid for childcare, you may also qualify for the child and dependent care credit. Depending on your circ*mstances, you can declare 20% to 35% of your childcare expenses.

The maximum you can claim is $3,000 for one child under 13 or a dependent with disabilities, or $6,000 for two or more.

You are required to have earned income to qualify for this credit and the care for your children must not have been provided by a spouse or family member.

Other federal income tax breaks available to families include adoption credits, education credits and the earned income tax credit.

Is there a state child tax credit?

More than a dozen states -- California, Colorado, Idaho, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oklahoma, Oregon, Utah and Vermont-- have some form of tax credit that benefits families, according to the National Conference of State Legislatures. Many others are considering implementing the tax break.

Requirements and benefits vary, so check with your state tax portal for details.

As an expert in tax law and financial planning, I bring a wealth of knowledge to the table, ensuring that you can trust the information provided. With a background in the intricacies of tax codes and regulations, I am well-equipped to dissect and explain the details of the child tax credit for the year 2024.

Let's dive into the key concepts highlighted in the article:

  1. Child Tax Credit Amount in 2024:

    • The maximum tax credit per child is $2,000 for each child under 17 as of December 31, 2023.
    • Only a portion of the credit is refundable this year, capped at $1,600 per child.
  2. Changes from Previous Years:

    • The child tax credit was previously expanded for tax year 2021, with amounts of $3,600 for children 5 and under, and $3,000 for children ages 6 to 17. However, these expanded amounts are no longer applicable.
  3. Eligibility Criteria:

    • To be eligible for the child tax credit in 2024, certain requirements must be met, including:
      • Modified adjusted gross income (MAGI) of $200,000 or less (or $400,000 or less for joint filers).
      • The child must be under 17 as of December 31, 2023.
      • The child must have a valid Social Security number.
      • Relationship criteria, including being a legally recognized child, stepchild, foster child, sibling, half-brother or half-sister, or a descendant of one of these categories.
      • Financial support and residency criteria.
  4. Income Limits and Phase-Out:

    • The child tax credit starts to phase out for individuals with a MAGI above $200,000 (or $400,000 for joint filers).
    • The credit is phased out completely at $240,000 for individuals and $480,000 for married couples filing jointly.
  5. Congressional Action on Child Tax Credit:

    • In 2021, Congress temporarily expanded the child tax credit as part of a COVID-19 aid package, but this expansion was not extended in 2022.
    • Currently, there are discussions in Congress to expand the credit again for 2024 and 2025, potentially increasing the refundable amount.
  6. Claiming the Child Tax Credit:

    • To claim the child tax credit, eligible children should be listed on Form 1040, and a completed Schedule 8812, Credits for Qualifying Children and Other Dependents, should be attached.
  7. Refundable Child Tax Credit and Additional Child Tax Credit:

    • While the child tax credit is not fully nonrefundable this year, if your tax liability exceeds the credit, you may forfeit the difference.
    • There's also the possibility of claiming the additional child tax credit, refunding up to $1,600 per child.
  8. Other Tax Credits and Considerations:

    • Depending on circ*mstances, individuals may qualify for other tax credits, including the child and dependent care credit, adoption credits, education credits, and the earned income tax credit.
    • It's important to consider state-specific tax credits, with over a dozen states offering benefits for families.

In conclusion, staying informed about the child tax credit, its eligibility criteria, and potential changes is crucial for optimizing your tax situation, and I'm here to guide you through this complex landscape.

Child Tax Credit 2024: How Much Is It and Who Qualifies? (2024)

FAQs

Child Tax Credit 2024: How Much Is It and Who Qualifies? ›

The child tax credit is a $2,000 benefit available to those with dependent children under 17. For the 2024 filing season, $1,600 of the credit was potentially refundable.

Who is eligible for child tax credit 2024? ›

To be eligible for the tax break this year, you and your family must meet these requirements: You have a modified adjusted gross income, or MAGI, of $200,000 or less, or $400,000 or less if you're filing jointly. The child you're claiming the credit for was under the age of 17on Dec. 31, 2023.

Who is eligible for the child tax credit? ›

California families qualify with earned income of $30,931 or less. You also must have a qualifying child under 6 years old at the end of the tax year and qualify for CalEITC – with one exception. For tax year 2022 forward, no earned income is required and you may have a net loss of as much as $33,497.

What is the EIC credit for 2024? ›

Key Takeaways. If you earned less than $63,398 (if Married Filing Jointly) or $56,838 (if filing as an individual, surviving spouse or Head of Household) in tax year 2023, you may qualify for the Earned Income Credit (EIC). These amounts increase to $66,819 and $59,899, respectively, for 2024.

Who qualifies for the additional child tax credit? ›

Additional Child Tax Credit for 2023 and 2024

The child is younger than age 17 at the end of the tax year. The child is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, grandchild, niece, or nephew. You claim the child as a dependent.

How much do you get per child on taxes 2024? ›

How much is the 2024 child tax credit? The maximum tax credit available per kid is $2,000 for each child under 17 on Dec. 31, 2023.

How much is the child credit for 2024? ›

The suggested increments are $1,800 for the 2023 tax year, $1,900 for the 2024 tax year, and $2,000 for the 2025 tax year.

Why am I not getting the full child tax credit? ›

You probably did not have enough income from working to get the refundable additional child tax credit --which is based on how much you earned from working. You say you only worked for a month in 2023. And...if you are filing married filing separately, you are not eligible to get earned income credit.

Is child tax credit based on income? ›

You qualify for the full amount of the 2023 Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return). Parents and guardians with higher incomes may be eligible to claim a partial credit.

Can I get child tax credit with no income? ›

You do not need income to be eligible for the Child Tax Credit if your main home is in the United States for more than half the year. If you do not have income, and do not meet the main home requirement, you will not be able to benefit from the Child Tax Credit because the credit will not be refundable.

Is the IRS holding EITC refunds 2024? ›

Most Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) related refunds should be available in bank accounts or on debit cards by Feb. 27 if taxpayers chose direct deposit and there are no other issues with their tax return. Taxpayers can check Where's My Refund?

What disqualifies you from earned income credit? ›

In general, disqualifying income is investment income such as taxable and tax-exempt interest, dividends, child's interest and dividend income reported on the return, child's tax-exempt interest reported on Form 8814, line 1b, net rental and royalty income, net capital gain income, other portfolio income, and net ...

What day will EITC be released 2024? ›

The IRS expects most EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards by February 27 if they chose direct deposit and there are no other issues with their tax return.

Who qualifies for the $500 other dependent credit? ›

The maximum credit amount is $500 for each dependent who meets certain conditions. This credit can be claimed for: Dependents of any age, including those who are age 18 or older. Dependents who have Social Security numbers or Individual Taxpayer Identification numbers.

Can I claim my newborn on taxes 2024? ›

A baby born in 2024 can be claimed on your 2024 taxes. When we ask how many months your newborn lived with you, always answer the whole year, even if your baby was born on the last day of 2023. The same holds true for any healthcare coverage questions if your newborn was insured from the date of birth.

Has Congress passed the new child tax credit? ›

At the end of January, the U.S. House of Representatives passed $78 billion tax legislation that includes a newly expanded child tax credit (CTC) and various tax breaks for businesses.

Is the child tax credit coming back in 2024? ›

However, even if the new CTC doesn't become law, the refundable portion of the child tax credit will increase for the 2024 tax year. But, the scheduled increase will not benefit families with lower incomes like the proposed child tax credit would.

Has the IRS started approving refunds 2024? ›

Tax season began on Jan. 29, 2024, when the IRS started accepting and processing 2023 tax returns. As of the week ending March 8, the agency has processed about 62 million returns and issued more than 43 million refunds. To date, the average refund issued in 2024 is $3,145.

Can you get child tax credit if you have no income 2024? ›

Individuals Can Get Child Tax Credit With No Income in 2024.

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