Child Tax Credit: 2024 Eligibility

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The child tax credit, also known as the additional child tax credit, is a partially refundable tax credit available to taxpayers with dependent children under the age of 17. The maximum tax credit per qualifying child is $2,000, $1,700 of which is refundable. That’s a $100 increase from 2023.

Find out if you qualify.

Who Qualifies for the Child Tax Credit?

According to the IRS, taxpayers must meet several requirements to qualify for the child tax credit, including:

• Be a parent or guardian who is filing a tax return for tax year 2024.
• Have a dependent under 17 years of age.
• The dependent must either be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister or a descendant of one of these — for example, a grandchild, niece or nephew.
• They must have a Social Security number by the due date of your tax return, including extensions.
• They must provide no more than half of their own financial support during the year.
• They must have lived with you for more than half the tax year.

How Does the Child Tax Credit Work?

If you make more than $2,500, you can receive up to 15% of your earned income as a credit. The maximum amount you can receive is $1,700.

Earned income includes wages from employment and self-employment as well as disability payments. To claim the credit, list your children and other dependents on Form 1040 and attach a completed Schedule 8812.

Reduced Credit

Once the parent or guardian’s modified adjusted gross income exceeds $200,000 when filing individually, or $400,000 if filing a joint return, the credit is reduced by $50 for every $1,000 above the threshold. For example, someone who filed as an individual with a gross income of $201,000 is only eligible for up to $1,650 of the credit.

No Credit

If your modified adjusted gross income is over $240,000 ($440,000 for married joint filers), you do not qualify for the credit at all.

The additional child tax credit cannot be claimed if you file Form 2555 or Form 2555-EZ, excluding foreign earned income.

States and the Child Tax Credit

Sixteen states and the District of Columbia had their own child tax credit, according to the Center on National Conference of State Legislatures.

This includes:

• Arizona
• California
• Colorado
• Idaho
• Illinois
• Maine
• Maryland
• Massachusetts
• Minnesota
• New Jersey

Each state’s program has a different name and eligibility requirements.

Final Take

The child tax credit can help eligible families get a refund of up to $1,700. The child tax credit can provide significant financial relief for qualifying families, but make sure you understand the eligibility requirements and income thresholds to maximize the benefit when filing your tax return.

Josephine Nesbit contributed to the reporting for this article.

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