Child Tax Credit

Child Tax Credit

The Child Tax Credit is a tax benefit provided to taxpayers for each qualifying dependent child, aimed at reducing the overall tax liability.

As of the tax year 2023, the credit amounts to $2,000 per qualifying child under the age of 17. The credit is partially refundable, meaning that if the credit exceeds the tax owed, taxpayers may receive a refund for the difference, up to a maximum of $1,600 per child.

To qualify, the child must meet specific criteria, including age, relationship, residency, and dependent status. The Child Tax Credit phases out at higher income levels, beginning with modified adjusted gross income (MAGI) thresholds of $200,000 for single filers and $400,000 for married couples filing jointly.