Child Tax Credit 101

Learning about tax credits and deductions that you qualify for can make a big difference at tax time. If you’re a parent, you’ll be happy to know that you may qualify for the Child Tax Credit if you have children. This credit can help you decrease your tax burden.

How Much is the Child Tax Credit?

You can claim $2,000 per dependent child under age 17. The Child Tax Credit is a refundable tax credit up to $1,600, meaning it can reduce your taxes owed dollar for dollar, and up to $1,600 can be refunded back to you.

For tax year 2021 only, the credit was worth up to $3,600 for each dependent child. In tax year 2022 (and currently for tax year 2023), the Child Tax Credit reverted to its prior amount of up to $2,000 per dependent child under age 17. 

To qualify for the full credit amount of the Child Tax Credit, your annual income can not be more than $200,000 ($400,000 if married filing a joint return). Parents and guardians that earn incomes higher than these thresholds may be eligible to claim a partial credit.

If you have a dependent that doesn’t qualify for the Child Tax Credit, you may be able to claim the Credit for Other Dependents for a maximum credit of $500 for each dependent who meets certain conditions. 

How Do I Qualify for the Child Tax Credit?

In order to claim the tax credit, you must meet these requirements:

• Your child has a Social Security number (SSN) that is valid for employment and has to be a U.S. citizen, U.S. national, or U.S. resident)
• Your child is under the age of 17 at the end of the year
• Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister,  or descendant of them (think grandchild, niece, or nephew
• Your child is claimed as a dependent
• Your child has lived with you for more than half the year
• Your child did not provide more than half of their own support
• Your child can not file a joint return with their spouse for the tax year or file it only to claim a refund of withheld income tax or estimate tax paid 

To claim the full amount of the Child Tax Credit for each qualifying child your annual income can not be more than $200,000 ($400,000 if married filing jointly). 

Check Out Other Tax Credits

While you’re claiming the Child Tax Credit, you should see if you qualify to receive the Child and Dependent Care Credit or Earned Income Tax Credit (EITC). You may be able to further reduce your tax burden!

Don’t worry about knowing about this tax benefit. No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed.