Child Tax Credit

The Child Tax Credit (CTC) is a federal tax credit designed to help taxpayers offset the cost of raising qualifying children. The credit can reduce tax owed and, in some cases, result in a refund.

The amount of credit a taxpayer can receive depends on:

• The child’s age
• Relationship and residency requirements
• The taxpayer’s income

• Filing status

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Who Qualifies for the Child Tax Credit

A child must meet all of the following requirements to qualify:

• Age: Under age 17 at the end of the tax year
• Relationship: Son, daughter, stepchild, foster child, sibling, or a descendant of any of these
• Residency: Lived with the taxpayer for more than half the year
• Support: Did not provide more than half of their own support
• Citizenship: U.S. citizen, U.S. national, or U.S. resident alien
• SSN Requirement: Must have a valid Social Security number issued before the due date of the return

✅ The child must be claimed as a dependent on the return.

Credit Amount

Under current law, the maximum Child Tax Credit is $2,200 per qualifying child.

• Up to $1,700 of the credit may be refundable as the Additional Child Tax Credit
• The remaining portion is nonrefundable and can reduce tax owed to zero

⚠️ Refundability is limited and depends on earned income and other factors.

Income Limits (Phase‑Out Rules)

The Child Tax Credit begins to phase out when income exceeds:

• $200,000 for Single, Head of Household, or Married Filing Separately
• $400,000 for Married Filing Jointly

The credit is reduced by $50 for each $1,000 (or part of $1,000) over the threshold.