The Child Tax Credit provides financial relief for parents and guardians on their federal tax returns. For the 2024 tax year, the maximum credit available per qualifying child under 17 is up to $1,700. This amount applies to the refundable portion of the credit, often known as the additional child tax credit.
To qualify for the Child Tax Credit, several criteria must be met. The person filing must be a parent or guardian. The child or dependent must be under 17 years old at the end of the tax year and have a valid Social Security number for employment in the U.S. The qualifying dependent could be a son, daughter, stepchild, eligible foster child, sibling, or a descendant such as a niece, nephew, or grandchild.
The dependent should not provide more than half of their own financial support during the year. The child must have lived with the filer for more than half the tax year and be correctly claimed as a dependent on the tax return.
child tax credit eligibility criteria
They must not file a joint return with a spouse, except to claim a tax refund. The child must also be a U.S. citizen, U.S. national, or U.S. resident alien. The value of the Child Tax Credit and the additional tax credit starts to phase out if the parent or guardian’s gross income exceeds $200,000 for single filers or $400,000 for joint filers.
The additional tax credit is not available to those who file a Form 2555 or Form 2555-EZ, which is used to exclude foreign earned income. To claim the Child Tax Credit, you need to include your children and other dependents on your Form 1040, the U.S. Individual Income Tax Return. You also need to fill out Schedule 8812, which calculates credits for qualifying children and other dependents.
By meeting the outlined criteria and correctly completing your tax forms, you can maximize your benefits from the Child Tax Credit. This credit can significantly reduce your tax liability and provide much-needed financial relief as you support your dependents.