How Much Do You Get for Child Tax Credit?

As a parent, you may be eligible for child tax credit, a government benefit designed to help families with the cost of raising children.

How Much Do You Get for Child Tax Credit

But how much can you expect to receive?

In this article, we'll explore the ins and outs of child tax credit and break down how much you can receive.

Table of Contents

What Is the Child Tax Credit?

The Child tax credit is a tax benefit that allows eligible parents to claim a credit of up to $2,000 per child under the age of 17.

Unlike a deduction, which reduces your taxable income, a credit is a dollar-for-dollar reduction of your tax liability.

This means that if you owe $2,500 in taxes and have a child tax credit of $2,000, your tax bill will be reduced to $500.

Who Is Eligible for Child Tax Credit?

To be eligible for child tax credit, you must meet certain criteria:

  • You must have a qualifying child who is under the age of 17 and meets certain relationship and residency requirements.
  • You must have a modified adjusted gross income (MAGI) below certain thresholds. The phaseout threshold for single filers is $200,000 and for married couples filing jointly, it's $400,000.
  • You must have a valid Social Security number or individual taxpayer identification number (ITIN) for each qualifying child.

How Much Do You Get for Child Tax Credit?

Now, let's get to the heart of the matter: how much can you receive for child tax credit? As mentioned earlier, the credit is worth up to $2,000 per child. However, the actual amount you can claim depends on a few factors.

First, your income plays a role. The credit begins to phase out for single filers with a MAGI of $200,000 and for married couples filing jointly with a MAGI of $400,000. For every $1,000 of income over the threshold, the credit is reduced by $50.

Second, the credit is partially refundable. This means that if your tax liability is reduced to $0 and you still have some credit left over, you can receive up to $1,400 per child as a refund.

Third, the American Rescue Plan Act of 2021 made some temporary changes to the child tax credit for the 2021 tax year.

For 2021 only, the credit amount increased to $3,000 per child ages 6-17 and $3,600 per child under age 6. Additionally, the credit is fully refundable, and you can receive half of the credit in advance through monthly payments from July to December 2021.

Be sure to claim it on your tax return

Child tax credit can be a significant help to families with children.

While the amount you receive depends on your income and other factors, it's a valuable benefit that can help reduce your tax liability and provide some financial relief.

If you're eligible for child tax credit, be sure to claim it on your tax return to take advantage of this valuable benefit.

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