Child Tax Credit 2024: Find out if you qualify

Come 2025, the official start of tax season will be less than a month away, which means many people will now start seriously considering their options for deductions and credits. You may have heard a lot about the child tax credit – And its uncertain future -But how do you know if you and your family qualify?

The United States first introduced the federal child tax credit in the late 1990s as a way to help people reduce their tax benefits based on the number of dependent children they have. Over the decades since, the amount the credit offers has increased, and at least this year, your tax refund can now also increase.

Recent studies indicate that the child tax credit can have a measurable impact on the quality of life for many families by helping to lift them out of poverty. Columbia University Center on Poverty and Social Policy I found that the payments reduced monthly rates Child poverty increased by nearly 30% in 2021 after it was expanded through the American Rescue Plan, with payments reaching nearly 61 million children through their tax-paying parents.

Keep reading to learn everything you need to know about qualifying for the federal child tax credit. For more tax help, find out if The child tax credit will delay your return and Find out if your state has its own version of the credit.

What is the child tax credit?

As the name suggests, the federal child tax credit, which was first written into the U.S. tax code in 1997, provides a credit for each dependent child you claim on your tax return. Depending on your situation, this can either help lower the amount you owe in taxes or help increase the amount you’ll receive in your tax refund.

Currently, the credit is good for up to $2,000 per dependent child on your taxes. This full amount is “non-refundable,” meaning you can only get this amount to reduce your tax burden. However, up to $1,700 per child can be claimed as a “refundable” credit, meaning it can be used to top up the amount you receive for your tax refund.

These amounts remain in effect for the 2025 tax season. Unless another expansion is passed by Congress, in 2026 the value of the child tax credit will drop to $1,000, none of which can be refunded.

How do I qualify for the child tax credit?

the IRS Child Tax Credit web page Defines the parameters that make a dependent child eligible. The child is under 17 years old by the end of 2024 and must be, according to the IRS, “your son, daughter, stepchild, qualified custodial child, sibling, sister, half-brother, half-sister, half-brother, half-sister Sister, or descendant of one of these (for example, grandchild, niece or nephew).”

Additionally, that child must not have provided more than half of their support over the course of the 2024 tax year and must have lived with you for at least half the year. The child must also be a U.S. citizen, national, or resident alien and must have a valid Social Security number issued before the due date of your tax return.

Do I make enough money to qualify for the child tax credit?

While anyone with a dependent child can claim the child tax credit, only people under certain income thresholds are eligible for the full amount. To do this, your income for 2024 must be $200,000 or less if you are filing as an individual or $400,000 or less if you are filing jointly. The value of the credit you can get for each child starts to decrease by $50 for every $1,000 of income you earn above those limits.

For more, find out how A savings credit may be able to help lower your tax bill.