Child Tax Credit: You Can Claim up to $2,000 per Child in Your Household

Published On: February 14, 2025

Child Tax Credit: You Can Claim up to $2,000 per Child in Your Household

If you’re a parent, there’s good news this tax season: the long-awaited Child Tax Credit (CTC) allows you to claim up to $2,000 for each qualifying child. It is one of the most popular tax breaks, with over 46 million people claiming it annually. Furthermore, it is partially refundable, which means you may receive money even if you owe little or nothing to the Internal Revenue Service (IRS).

The credit is up to $2,000 per child under the age of 17. However, if Congress does not act, this benefit may be significantly reduced by 2026. So, for now, make the most of it!

The Child Tax Credit helps millions of families in America

This credit has been available since 1997, with a non-refundable value of $500 per child. Over time, adjustments have been made to broaden its scope and size. In 2017, the Tax Cuts and Jobs Act increased it to $2,000.

In 2021, the American Rescue Plan temporarily increased it to $3,600 for children under the age of six and $3,000 for those aged six to seventeen. He also made it fully refundable and accepted advance monthly payments. However, the increase lasted only a year, and it has since returned to its original value of $2,000.

How much can you receive in 2024 from the CTC?

For tax year 2024 (in other words, the 2025 return that you must file right now), the CTC remains at $2,000 per child under the age of 17. However, not all of the amount is refundable: the Additional Child Tax Credit (ACTC) has a maximum of $1,700.

The IRS does not issue ACTC refunds before mid-February, but if you file electronically and set up direct deposit, you may receive the funds before March 3.

To be eligible, you must meet these requirements:

Be a US citizen or resident foreigner with certain eligible statuses.
Have a modified adjusted gross income of $400,000 or less if you file jointly with your partner, or $200,000 or less if you file alone.
Claim credit for a biological child, adopted child, stepchild, or even a sibling or grandchild under your guardianship.

The child in question must:

Be under 17 years old as of December 31, 2024.
Be declared as a dependent on your tax return.
Have a valid Social Security number.
Have lived with you at least half of the year.
Not having covered more than half of their own expenses in 2024.

Income limits for the CTC tax credits

If you file as a couple and have an adjusted gross income of $400,000 or less, you are eligible for the full credit. If you earn more, the amount is reduced by $50 for every $1,000 you go over the limit. If your joint income exceeds $480,000 (or $240,000 for other taxpayers), the credit is no longer available.

To claim that cash and not leave it to the IRS (you’ll need the extra cash, don’t you?), simply include your children on Form 1040 and attach Schedule 8812. If you file your taxes online, platforms like TurboTax and FreeTaxUSA offer free tax filing options. In fact, TurboTax estimates that 37% of its users qualify for the free tier.