Child Tax Credit 2024: Find Out If You Qualify

By 2025, the tax deadline is less than a month away, meaning that many people will begin to seriously consider their options for eliminating and repaying debt. You’ve probably heard a lot about the child tax credit — and its uncertain future — but how do you know if you and your family qualify?

The US first introduced the child tax credit in the late 1990s as a way to help people reduce their taxes based on the number of dependent children they have. Over the years since then, the amount owed on loans has increased and, for this year, it may increase your tax return as well.

Recent studies show that the child tax credit can have a positive impact on the health of many families by helping them lift themselves out of poverty. Columbia University Center on Poverty and Social Policy found that the payment reduces the monthly costs of child poverty by about 30% in 2021 after the expansion of the American Rescue Plan, with payments reaching about 61 million children through their tax-paying parents.

Continue reading for everything you need to know about receiving the federal tax credit. For more tax information, check if The child tax credit will delay your return and see if your country has its own type of debt.

What is the child tax credit?

As the name suggests, the child tax credit, which was first written into the US tax code in 1997, provides a credit for each dependent child that you claim on your tax return. Depending on the circumstances, this can help reduce your tax bill or increase the amount you will receive on your tax return.

Currently, the credit is good for up to $2,000 per dependent child on your taxes. All of the money is “non-refundable,” meaning you can receive more to reduce your taxes. However, up to $1,700 per child can be claimed as a “refundable” credit, meaning it can be used to increase the amount you receive on your tax return.

These credits remain in effect for the 2025 tax season. Unless another extension is passed by Congress, in 2026 the value of the child tax credit will drop to $1,000, none of which is refundable.

How do I qualify for the child tax credit?

The IRS website for tax credits it creates what makes a dependent child worthy. The child is at least 17 years old by the end of 2024 and must be, according to the IRS, “your son, daughter, stepchild, eligible adoptive child, brother, sister, stepbrother, sister, brother, sister, or a descendant of one of these (for example, a grandchild, niece or nephew).

In addition, the child must not provide more than half of his or her child support during the 2024 tax year and must live with you for at least half of the year. The child must also be a US citizen, national or resident alien and must have a valid Social Security number issued before the due date of your tax return.

Do I make enough money to qualify for the child tax credit?

Although anyone with a dependent child can claim the child tax credit, only people with certain incomes are eligible for the full amount. To do this, your income in 2024 must be $200,000 or less if you’re self-employed or $400,000 or less if you’re filing a partnership. The credit you can get for a child starts off at $50 per $1,000 of income you make on these inputs.

For more information, see how to do it A saver loan can help you reduce your tax bill.