Child Tax Credit 2024: Find out if you qualify

As 2025 approaches the official start of tax season is less than a month away, which means many people will now begin to seriously consider what options they have for deductions and credits. You may have heard a lot about the child tax credit — and her uncertain future — but how do you know if you and your family qualify?

The US first introduced the federal child tax credit in the late 1990s as a way to help people reduce their tax liability based on the number of dependent children they have. In the decades since then, the amount offered by the credit has increased, and for this year at least, it can now increase your tax refund.

Recent studies show that the child tax credit can have a significant impact on the quality of life of many families, helping them to lift themselves out of poverty. Columbia University Center on Poverty and Social Policy found that payments reduce monthly rates of child poverty by nearly 30% in 2021 after being extended by the US bailout, with payments reaching an estimated 61 million children through their taxpayer parents.

Keep reading for everything you need to know about qualifying for the federal child tax credit. For more tax help find out if child tax credit will delay your refund and see if your state has its own version of the credit.

What is the Child Tax Credit?

As the name suggests, the federal child tax credit, first written into US tax law in 1997, provides a credit for each dependent child you claim on your tax return. Depending on your situation, this can either help reduce the amount you’ll owe in taxes or help increase the amount you’ll receive in a tax refund.

The credit is currently good for up to $2,000 per dependent child on your taxes. This full amount is “non-refundable”, meaning you can only get so much to reduce your tax burden. However, up to $1,700 per child can be claimed as a “refundable” credit, meaning it can be used to increase the amount you get in a tax refund.

These amounts remain in effect for the 2025 tax season. Unless Congress passes another extension, in 2026 the value of the child tax credit will be reduced to $1,000, none of which is refundable.

How do I qualify for Child Tax Credit?

The IRS Child Tax Credit Web Page lays out the parameters of what makes a dependent child eligible. Most children were under 17 by the end of 2024. and, according to the IRS, must be “your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of them (for example, a grandchild, nephew, or niece).”

In addition, that child must not have provided more than half of his or her own support during the 2024 tax year and must have lived with you for at least half of the year. The child must also be a US citizen, citizen or permanent resident alien and must have a valid social security number issued before the due date of your tax return.

Do I earn too much money to qualify for Child Tax Credit?

Although anyone with a dependent child can claim the Child Tax Credit, only people below certain income thresholds qualify for the full amount. To do this, your 2024 income must be $200,000 or less if filing as an individual or $400,000 or less if filing jointly. The credit you can get per child begins to decrease in value by $50 per $1,000 of income you make above these thresholds.

For more information, find out how the saver’s credit can help reduce your tax bill.