What Is the Child Tax Credit? A Complete Guide for Parents
By Tax&Facts | Published on | Read: 3 Mins
Raising a child comes with plenty of expenses—from daycare and school supplies to healthcare and housing. Thankfully, the U.S. government offers some financial relief through the Child Tax Credit (CTC). Whether you're a new parent or just looking to better understand how to claim the credit, this article breaks down everything you need to know.
What Is the Child Tax Credit?
The Child Tax Credit is a federal tax benefit that helps families with the cost of raising children. Eligible taxpayers can receive up to $2,200 per qualifying child under the age of 17. The credit is partially refundable, meaning you could still receive a refund even if you owe little or no income tax.
It’s designed to reduce your federal income tax liability, dollar for dollar, which makes it more valuable than a tax deduction.
Who Qualifies for the Child Tax Credit?
Child requirements:
- Must be under 17 at the end of the tax year.
- Must be your dependent (child, stepchild, foster child, sibling, etc.).
- Must live with you for more than half the year.
- Must have a valid Social Security number.
Income limits:
- Credit begins to phase out at:
- $200,000 for single filers.
- $400,000 for joint filers.
Number of Children:
There is no specific limit to the number of children you can claim for the Child Tax Credit, as long as they meet the eligibility requirements. For example, if you have three eligible children, you could claim up to $2,200 per child, potentially totaling $6,000 in credits.
How Much Can You Get?
- Up to $2,200 per child under 17.
- Up to $1,500 of the credit may be refundable as the Additional Child Tax Credit (ACTC), depending on your income.
- Children over 17 don’t qualify, but you might be eligible for the Credit for Other Dependents ($500).
How to Claim the Child Tax Credit
You must file Form 1040 and attach Schedule 8812 (Credits for Qualifying Children and Other Dependents) to claim the credit. Most modern tax software will handle this automatically.
FAQ Frequently Asked Questions (FAQ)
Q1: Is the Child Tax Credit refundable?
A1: Yes, up to $1,500 of the credit can be refunded through the Additional
Child Tax Credit, depending on your earned income.
Q2: Do I need a Social Security Number for my child?
A2: Yes, your child must have a valid SSN issued before the due date of your
tax return (including extensions).
Q3: What if I share custody?
A3: Only one parent can claim the child per year. Typically, it’s the parent
the child lives with most of the time.
Q4: Can I claim the credit if I have no income?
A4: You need earned income of at least $2,500 to qualify for the refundable
portion.
Q5: Is the Child Tax Credit different from the Earned Income Tax
Credit (EITC)?
A5: Yes. They are separate credits, but you can claim both if you qualify.
Article History
v1.0 (May 19, 2025): Initial publication of the article