The Child Tax Credit: Eligibility, Amounts, and How to Claim It
What Is the Child Tax Credit?
As a tax preparer, I work with many families each year who ask about the Child Tax Credit (CTC), what it is, who qualifies, and how it can impact their refund. The CTC is a valuable federal tax benefit designed to help families manage the cost of raising children. Depending on your specific situation, you may qualify for the Child Tax Credit, the Additional Child Tax Credit (ACTC), or the Credit for Other Dependents, and in some cases, all three.
Note: This guide focuses on the federal Child Tax Credit. While some states offer their own versions, we'll be sticking to the federal rules for now.
For more details straight from the IRS, you can visit:
IRS Child Tax Credit
Types of Credits
Depending on your dependent information and income, you may be eligible for the following:
- Child Tax Credit (CTC) - A nonrefundable credit of up to $2,000 per qualifying child
- Additional Child Tax Credit (ACTC) - A refundable portion of the CTC, up to $1,700 per qualifying child
- Credit for Other Dependents (ODC) - A nonrefundable credit of up to $500 for qualifying dependents who don't meet CTC requirements (e.g., older children or relatives)
Note: Our tax software FileYourTaxes.com automatically checks for and applies all eligible credits based on your entries. You don't need to calculate these amounts manually.
Qualification Requirements
For the Child Tax Credit / Additional Child Tax Credit, a Qualifying Child must:
- Be under age 17 at the end of the tax year (December 31, 2024)
- Be your son, daughter, stepchild, foster child, sibling, or their descendant (e.g., grandchild, niece, nephew)
- Have lived with you for more than half the year
- Have received more than half of their financial support from you
- Be a U.S. citizen, national, or resident alien
- Have a valid Social Security Number (SSN) issued before your tax return is due
- Be claimed as a dependent on your return
For the Other Dependent Credit, a dependent must:
- Not qualify for the Child Tax Credit
- Be a U.S. citizen, national, or resident alien
- Have a valid SSN or ITIN issued by the filing deadline
- Be listed as a dependent on your return
- Have lived with you for more than half the year, with some exceptions (e.g., for college students)
- Have received less than half of their financial support from themselves
Income Limits for Tax Year 2024
Once fully phased out, the Child Tax Credit, Additional Child Tax Credit, and Other Dependent Credit are no longer available.
How to Claim the Credit
If you're using FileYourTaxes.com, the good news is, it's all calculated for you automatically! If your return qualifies, Form 8812 will be included to ensure the correct credits are applied.
Here's how the Form 8812 Child Tax Credit breaks down:
- Part I - Calculates the nonrefundable Child Tax Credit and Credit for Other Dependents
- Part II-A - Calculates the refundable portion of the ACTC
- Part II-B - Specific for those with 3+ qualifying children or Puerto Rico residents
- Part II-C - Summarizes the total refundable portion of the credit
Filing on Paper?
You'll need to:
- File Form 1040 and applicable schedules.
- Complete Schedule 8812 Child Tax Credit
- Include required forms, like your W-2.
- Confirm that your income and eligibility meet IRS guidelines
Still unsure if your child qualifies? The IRS has an interactive tool you can use to check. This link will take you there directly. IRS CTC Interactive Tool
