2024 Child Tax Credit Calculator
How the 2024 Child Tax Credit Works
The Child Tax Credit (CTC) is a significant tax benefit designed to help families offset the costs of raising children. For the 2024 tax year, the credit provides up to $2,000 per qualifying child under the age of 17. Unlike a tax deduction, which lowers your taxable income, a tax credit reduces your actual tax bill dollar-for-dollar.
- Must be under age 17 at the end of the year.
- Must be your son, daughter, stepchild, foster child, sibling, or a descendant of any of them.
- Must have lived with you for more than half of the year.
- Must have a valid Social Security Number.
Income Phase-Out Thresholds
The full credit is available to many families, but it begins to "phase out" once your Modified Adjusted Gross Income (MAGI) exceeds certain limits. For every $1,000 of income above these thresholds, the total credit amount is reduced by $50.
| Filing Status | Phase-Out Begins At |
|---|---|
| Married Filing Jointly | $400,000 |
| All Other Filers (Single, HoH) | $200,000 |
Calculation Example
Suppose you are a Head of Household filer with two children under 17 and an annual income of $210,000.
- Initial Credit: 2 children x $2,000 = $4,000.
- Excess Income: $210,000 – $200,000 (threshold) = $10,000.
- Reduction: ($10,000 / $1,000) x $50 = $500.
- Final Credit: $4,000 – $500 = $3,500.
Is the Credit Refundable?
Yes, a portion of the Child Tax Credit is refundable via the Additional Child Tax Credit (ACTC). If your credit exceeds the amount of tax you owe, you may be eligible to receive a refund of up to $1,700 per child (subject to earned income requirements). This ensures that even lower-income families who owe little to no federal income tax can still benefit from the program.