If you have children under 17 years of age, including those born in 2023, you may qualify for the child tax credit.
While this credit can potentially lower your tax liability, it is nonrefundable for the current year, meaning it won’t result in a refund.
Additionally, meeting specific eligibility criteria is essential to qualify for the child tax credit in 2024.
We will assist you in determining your eligibility for the child tax credit in 2024 and calculating the potential amount you may receive.
How to Be Eligible for Child Tax Credit?
To qualify for the tax credit this year, you and your family must meet the following criteria:
- Your modified adjusted gross income (MAGI) should be $200,000 or less, or $400,000 or less if filing jointly.
- The child for whom you are claiming the credit must have been under the age of 17 on December 31, 2023.
- The child must possess a valid Social Security number.
- The child should be your legally recognized child, stepchild, foster child, sibling, half-brother or half-sister, or a descendant of one of these categories (e.g., grandchild, niece, or nephew).
- The child should not have contributed more than half of their own financial support during the relevant tax year.
- The child must have resided with you for more than half of the year.
- You must claim the child as a dependent on your tax return.
- You should be a US citizen or resident alien.
Child Tax Credit Amount for 2024
The maximum available tax credit per child is $2,000 for each child under the age of 17 as of December 31, 2023.
Unlike the 2021 tax year, where the expanded child tax credit was $3,600 for children aged 5 and under and $3,000 for children aged 6 to 17, these specific amounts no longer apply.
The age requirement, which was temporarily extended to under 18 on December 31, has also reverted to its original conditions.
If your modified adjusted gross income (MAGI) exceeds the income limits, the child tax credit amount will decrease by $50 for every $1,000 above the limit.
For instance, an individual with a MAGI of $210,000 would allow a claim of $1,500 for each eligible child.
The child tax credit is entirely phased out for individuals with a MAGI exceeding $240,000 and for married couples filing jointly with a MAGI exceeding $480,000.