The Child Tax Credit stayed at $2,000 per child for 2024, with no expansion

The Child Tax Credit did not pass as an expanded program for 2024. The credit remains $2,000 per may have access to child under age 17, the same amount it has been since 2018. You claim it on your 2024 tax return using Form 1040 and Schedule 8812 if you have dependent children.

What changed in 2024 is not the credit itself, but how you receive it. The monthly advance payments that ran from July 2021 through December 2021 — when the IRS sent money directly to your bank account or mailed checks — ended after 2021. If you received those payments, you may have to reconcile them when you file your 2024 return, meaning the IRS will compare what you got in advance against what you actually owed.

Congress did not pass legislation to bring back the expanded $3,600 credit for children under 6 or the $3,000 credit for children 6 and older that existed in 2021. Those increases expired at the end of 2021, and the credit reverted to $2,000 per child starting in 2022.

Key Takeaways

  • The Child Tax Credit for 2024 is $2,000 per child under age 17, unchanged from 2022 and 2023.
  • Monthly advance payments ended in December 2021 and have not returned; you now claim the full credit on your tax return.
  • If you received advance payments in 2021, you must reconcile them on your 2024 return by comparing what you got to what you owed.
  • The credit phases out for higher incomes: $400,000 for married couples filing jointly and $200,000 for single filers.

How the $2,000 credit works on your 2024 return

You claim the Child Tax Credit by listing each may have access to child on Form 1040 (the main tax form) and providing their Social Security number. The IRS uses Schedule 8812 to calculate the credit if your income is above certain thresholds or if you have more than four children.

A may have access to child must be under age 17 at the end of 2024, claimed as your dependent, a U.S. citizen or resident alien, and related to you by blood, marriage, or adoption. The child must live with you for more than half the year. You cannot claim the credit for a child who files their own tax return claiming themselves as a dependent.

The credit reduces your tax bill dollar-for-dollar. If you owe $3,500 in federal income tax and have two may have access to children, the $4,000 credit (2 × $2,000) wipes out your $3,500 bill and leaves you with a $500 refund. If you owe nothing, the credit can still produce a refund up to $1,700 per child through the refundable portion of the credit.

Income limits and phase-out rules for 2024

The Child Tax Credit begins to shrink if your modified adjusted gross income (MAGI) exceeds $400,000 for married couples filing jointly or $200,000 for single filers, heads of household, or married couples filing separately. For every $1,000 (or fraction thereof) over the threshold, the credit drops by $50 per child.

If you are married filing jointly with MAGI of $410,000 and have two children, your credit would normally be $4,000. Because you are $10,000 over the $400,000 threshold, you lose $500 (10 × $50), bringing your credit to $3,500. The IRS rounds up any partial $1,000, so even $1 over a $1,000 increment counts as a full $1,000.

MAGI for the Child Tax Credit is your adjusted gross income (line 11 on Form 1040) plus any foreign earned income, foreign housing exclusion, or foreign housing deduction. Most people's MAGI is the same as their AGI, so you can use your AGI as a starting point.

What happened to the expanded credit from 2021

In 2021, Congress temporarily expanded the Child Tax Credit as part of the American Rescue Plan. The credit jumped to $3,600 for children under 6 and $3,000 for children 6 to 16. The IRS also sent half the credit as monthly advance payments from July through December 2021, putting money in people's accounts before they filed their tax return.

That expansion was set to expire at the end of 2021. Congress did not renew it, so the credit returned to $2,000 per child starting in 2022 and has remained there through 2024. The monthly advance payments also ended and have not returned.

If you received advance payments in 2021, you will reconcile them when you file your 2024 return. Reconciliation means the IRS compares the advance payments you got against the credit you actually owed based on your 2021 income and family situation. If you got more than you owed, you may owe money back when you file. If you got less, you may receive the difference as a refund. The reconciliation happens on Form 8812.

Refundable vs. non-refundable portions of the credit

The Child Tax Credit has two parts: a non-refundable portion of $1,300 per child and a refundable portion of $700 per child (totaling $2,000). The non-refundable part can only reduce your tax bill to zero. The refundable part can produce a refund even if you owe no tax.

If you owe $800 in federal income tax and have one child, the non-refundable $1,300 wipes out your $800 bill, leaving $500 of that portion unused. The refundable $700 portion then produces a $700 refund. Your total benefit is $1,500 ($800 tax eliminated plus $700 refund).

The refundable portion is limited to 15 percent of your earned income above $2,500. If you have very low earned income, this limit may reduce the refundable amount you can claim. The IRS calculates this on Schedule 8812, and most people do not hit this limit.

Common mistakes when claiming the Child Tax Credit

The most frequent error is listing a child's Social Security number incorrectly. The IRS matches the number on your return to Social Security Administration records. A typo will cause the IRS to reject the credit and send you a notice. Double-check each digit before you file.

Another mistake is claiming a child who does not meet the residency test. The child must live with you for more than half the year. If your child spent 7 months with you and 5 months with the other parent, you meet the test. If the split is even or the child lived with the other parent longer, you cannot claim the credit for that child (though the other parent may be able to).

Some people claim a child who is 17 or older on December 31, 2024. The credit applies only to children under 17 at year-end. A child who turns 17 on December 31 does not may have access to. A child who turns 17 on January 1 of the following year does may have access to for the prior year.

Finally, do not claim the same child on two returns. If you and the other parent both file claiming the child, the IRS will disallow one of the claims and may assess penalties. Only one person can claim each child per tax year. If you share custody, you and the other parent should agree in advance who will claim the child.

How to claim the credit when you file your 2024 return

Start by completing Form 1040. On lines 12c and 12d, you will enter the number of may have access to children under 17 and the number of other dependents. The form will calculate a preliminary credit based on the number of children you enter.

If your income is below $400,000 (married filing jointly) or $200,000 (single), you may not need to file Schedule 8812. The Form 1040 itself will compute your credit. If your income exceeds those thresholds, or if you have more than four children, you must complete Schedule 8812 to calculate the phase-out and reconcile any advance payments you received.

When you file electronically through tax software or a tax professional, the software will prompt you to enter each child's name, date of birth, and Social Security number. The software will validate the information and flag any mismatches before you submit. If you file by paper, write the information clearly and attach Schedule 8812 if required.

Frequently Asked Questions

Do I have to pay back the advance payments I got in 2021?

Not automatically. You reconcile the advance payments on Form 8812 when you file your 2024 return. If your actual credit for 2021 was less than the advance payments you received, you may owe the difference. If your actual credit was more, you get the difference as a refund. The reconciliation depends on your 2021 income and family situation, not on whether you received payments.

Can I claim the credit for a stepchild or grandchild?

Yes, if the child meets the relationship and residency tests. A stepchild counts as a child by marriage. A grandchild counts if you legally adopted them or they are your dependent. The child must live with you for more than half the year and be under 17 at year-end. You must provide their Social Security number and claim them as your dependent on Form 1040.

What if my child was born on December 31, 2024?

Your child qualifies for the 2024 credit because they were under 17 at the end of 2024. You can claim the $2,000 credit on your 2024 return. You will need their Social Security number, which you can obtain from the Social Security Administration even if the number was issued after December 31.

Does the credit change if I get married or divorced during 2024?

Your filing status on December 31, 2024, determines which income threshold applies. If you were married on December 31, you file as married filing jointly and use the $400,000 threshold. If you were divorced or single on December 31, you use the $200,000 threshold. Your filing status also affects which children you can claim and how you split the credit with the other parent.

Can I claim the credit if I am not a U.S. citizen?

You can claim the credit if you are a resident alien with a valid Social Security number or Individual Taxpayer Identification Number (ITIN). The child must be a U.S. citizen or resident alien. If you are a nonresident alien, you generally cannot claim the credit unless you are married to a U.S. citizen or resident alien and file jointly.