The Child Tax Credit

The child tax credit provides up to $2,000 per qualifying child under age 17 at the end of the tax year. To qualify, the child must be a U.S. citizen, national, or resident alien, must have a valid Social Security number, must have lived with you for more than half the year, and must not have provided more than half of their own support. The credit phases out for single filers with modified AGI above $200,000 and for joint filers above $400,000, reducing by $50 for each $1,000 of income over the threshold.

The nonrefundable portion of the credit — the part that can reduce your tax to zero but not below — is reported on Line 19. If the credit exceeds your tax liability, the excess may be claimed as the Additional Child Tax Credit on Line 28, which is refundable up to $1,700 per child for 2024.

Credit for Other Dependents

Dependents who do not qualify for the child tax credit — children aged 17 or older, dependent parents, or other qualifying relatives — may qualify for the $500 credit for other dependents. This credit uses the same income phase-out thresholds as the child tax credit. Unlike the child tax credit, the credit for other dependents is entirely nonrefundable, meaning it can only reduce tax to zero. The dependent must have an Individual Taxpayer Identification Number (ITIN) or Social Security number and must meet the general dependency tests for the qualifying child or qualifying relative categories.

Calculating the Credit

The credit is calculated on the Child Tax Credit Worksheet in the Form 1040 instructions or on Schedule 8812, depending on the year and whether you are also claiming the additional child tax credit. The worksheet considers your total tax liability and ensures the nonrefundable portion does not exceed your actual tax. Proper documentation of each dependent’s relationship, age, residency, and Social Security number is essential because the IRS cross-references these claims against other returns to prevent duplicate credits.