How Much Money Is the Child Tax Credit Worth

The child tax credit is worth up to $2,000 per child under age 17, but the exact amount you receive depends on your income and tax filing status

The federal child tax credit reduces the taxes you owe to the IRS, dollar for dollar. For the 2024 tax year, the maximum credit is $2,000 for each child who is under 17 at the end of the year. However, the amount you actually receive phases down if your income exceeds certain thresholds. Those thresholds are $400,000 for married couples filing jointly, $200,000 for single filers, and $200,000 for heads of household.

The credit also comes in two parts: a regular tax credit that reduces what you owe, and a refundable portion called the Additional Child Tax Credit. The refundable portion can put money back in your pocket even if you owe no taxes at all, up to $1,700 per child for 2024. This matters most for lower-income families.

Key Takeaways

• The maximum credit is $2,000 per child under 17, but it phases down if your income is above $400,000 (married filing jointly) or $200,000 (single or head of household).
• Up to $1,700 of the credit is refundable for 2024, meaning you can receive money back even if you owe no federal income tax.
• You claim the credit on your federal tax return using Form 1040 and Schedule 8812, or through tax software that walks you through the questions.
• The credit amount can change year to year, so the 2025 amount may differ from 2024 — check the IRS website closer to tax time.
• If you received advance payments of the credit in 2024, you will reconcile those payments when you file your 2024 return in 2025.

How the credit phases out at higher incomes

If your modified adjusted gross income (MAGI) exceeds the threshold for your filing status, the credit decreases by $50 for every $1,000 (or fraction thereof) over the limit. For a married couple filing jointly with income of $420,000, for example, the credit would be reduced by $1,000 — $50 for each $1,000 over the $400,000 threshold — bringing the maximum credit from $2,000 per child down to $1,000 per child.

The phase-out applies to each child separately, so if you have three children and your income is $410,000 (married filing jointly), each child's $2,000 credit reduces by $500, for a total of $1,500 per child instead of $2,000.

The refundable portion: getting money back

The Additional Child Tax Credit is the refundable part of the credit. For 2024, you can receive up to $1,700 per child as a refund, even if you owe no income tax. This is calculated on Schedule 8812, which you file with your Form 1040.

To receive the refundable portion, you generally need to have earned income during the year — wages, self-employment income, or certain other forms of income count. The exact refundable amount depends on your earned income and your total tax liability, so the IRS instructions or tax software will walk you through the calculation when you file.

Advance payments and reconciliation

In some years, the IRS has sent advance payments of the child tax credit directly to families before tax time. If you received advance payments in 2024, those payments reduce the credit you claim on your 2024 tax return. When you file in 2025, you will reconcile the advance payments against the full credit you are due.

If you received more in advance payments than you are due based on your actual 2024 income, you may have to repay the difference when you file. If you received less than you are due, you will receive the remaining amount as a refund or credit against other taxes owed. The reconciliation happens automatically when you file your return and report your actual income for the year.

How to claim the credit on your tax return

You claim the child tax credit on your federal income tax return using Form 1040 and Schedule 8812 (if you are claiming the refundable portion). You will need the Social Security number for each child, their relationship to you, and the number of months they lived with you during the year.

If you use tax software — such as the IRS Free File program, TurboTax, H&R Block, or TaxAct — the software will ask you questions about your children and calculate the credit for you. If you file with a tax professional, they will ask for the same information and handle the calculation as part of preparing your return.

Changes year to year

The maximum credit amount, the income thresholds, and the refundable portion all can change from year to year. For 2024, the maximum is $2,000 and the refundable portion is up to $1,700. For 2025 and beyond, those amounts may be different.

Before you file, check the IRS website (irs.gov) or the instructions that come with Form 1040 to confirm the current year's amounts. Tax software will also have the current year's figures built in.

Frequently Asked Questions

What if my child turned 17 during 2024?

The child must be under 17 at the end of the tax year to count for the credit. If your child turned 17 on December 31, 2024, they do not count for the 2024 credit. If they turned 17 on any earlier date in 2024, they do not count either.

Can I claim the credit for a stepchild or grandchild?

Yes, if the child lived with you for more than half the year and you provided more than half their financial support. The child must also have a valid Social Security number and be a U.S. citizen, national, or resident alien. You cannot claim the credit for a child if someone else is claiming them on their own return.

What happens if I made too much money to get the full credit?

The credit phases out gradually as your income rises above the threshold. You will receive a reduced credit rather than nothing. Use the IRS worksheet in the Form 1040 instructions or let your tax software calculate the exact amount based on your income.

Do I have to file a tax return to get the refundable portion?

Yes, you must file a federal income tax return to claim the Additional Child Tax Credit and receive the refundable portion. Even if you have no tax liability, filing allows you to receive the refund. The IRS Free File program offers free filing for households under a certain income level.

What if I received an advance payment but my income changed?

When you file your 2024 return in 2025, you will report your actual income for the year. The IRS will compare the advance payments you received to the credit you are due based on that actual income and adjust accordingly. If you received too much, you may owe a repayment; if you received too little, you will get the difference back.