{"id":351712,"date":"2016-04-04T11:02:29","date_gmt":"2016-04-04T16:02:29","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/family\/child-support\/the-child-tax-credit.html"},"modified":"2024-11-05T16:43:00","modified_gmt":"2024-11-05T21:43:00","slug":"the-child-tax-credit","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/family\/child-support\/the-child-tax-credit.html","title":{"rendered":"What Is the Child Tax Credit?"},"content":{"rendered":"\n
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What Is the Child Tax Credit?<\/h1>\n
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\n By Danielle Gilmore, Esq.<\/a> | Legally reviewed by John Mascolo, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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The Child Tax Credit (CTC) is a federal tax credit for taxpayers with children. This tax credit allows some parents to reduce their federal income tax for each dependent child. This tax credit is available to those who meet the criteria to claim the credit. <\/p>\n\n <\/div>\n\n

With the Child Tax Credit<\/a>, you may be able to reduce the federal income tax you owe by up to $2,000 (for the tax year 2024) for each qualifying child under the age of 17. If you have children and are not married to the co-parent, your tax obligations and rights may be affected by any child support orders you have.<\/p>\n

Below is a basic overview of the federal tax benefit for dependent children. It answers frequently asked questions (FAQ) about Child Tax Credit payments and discusses its relationship with child support<\/a>.<\/p>\n

How Does the Child Tax Credit Work?<\/h2>\n

The Child Tax Credit for tax year 2024 provides for a dollar-for-dollar reduction of tax liability. For each qualifying child claimed as a dependent<\/a>, the maximum amount permitted is $2,000.<\/p>\n

When both parents can claim the child, the IRS favors the parent who lives with the child the most during the year. The IRS measures the time based on the most overnight visits. The amount of tax reduction may vary by income. The maximum amount of $2,000 per qualifying dependent child is available for a single tax filer whose modified adjusted gross income (MAGI) was $200,000 or less.<\/p>\n

With a joint married tax filer, the cutoff is a MAGI of $400,000 or less. If tax filers earn over those limits, there is a reduction formula that reduces the tax credit based on how much more the tax filer earns over those limits.<\/p>\n

For some tax filers, there is also a refundable credit of up to $1,700<\/a> (for the 2024 tax year) called the Additional Child Tax Credit (ACTC). So, if the full credit available was not used to reduce tax liability to $0, you may be able to receive a refund of the remaining credit. Payment of any refund can occur through direct deposit to your bank account.<\/p>\n

Parties with court orders from a divorce or parentage case will want to review any specific directives contained in their orders on who can claim the child tax credit in a given year.<\/p>\n

Who Is a Qualifying Child?<\/h2>\n

To meet the eligibility requirements to claim the child tax credit, your child must be a \u201cqualifying child." The Internal Revenue Service (IRS) defines a qualifying child<\/a> as a person who meets the following conditions:<\/p>\n