What is the Child Tax Credit?
The Child Tax Credit (CTC) is a federal tax benefit provided by the U.S. government to help families with the cost of raising children. Before the expanded program introduced under the American Rescue Plan, every qualifying family was eligible for a $2,000 tax credit for each dependent child under 17 years old.
What's New in the 2024 Child Tax Credit?
In a landmark bipartisan agreement, the U.S. House of Representatives passed a $78 billion tax package that includes an enhanced child tax credit. Crafted by Senate Finance Committee's Ron Wyden and House Ways and Means Committee's Jason T. Smith, the deal significantly expands support for lower-income families:
- Every child is now eligible for the credit, regardless of the family's ability to qualify for the full $2,000 per child.
- Example: a single mother with three children earning $10,000/year — previously eligible for only $1,500 — could now receive up to $4,500 under the new terms.
- The standard $2,000 per child credit remains for higher earners (up to $200,000 for single filers, $400,000 for married filing jointly).
- The Additional Child Tax Credit (ACTC) refundable portion rises to $1,700 per child.
The 2021 American Rescue Plan Expanded CTC
The $1.8 trillion American Families Plan signed by President Biden in 2021 temporarily expanded the CTC as part of COVID-19 relief:
- $3,600 per child under age 6
- $3,000 per child ages 6–17 (expanded from the previous "under 17" to "17 and under")
- Fully refundable — even families with little or no income could receive the full benefit
- Income phase-out begins at $75,000 (single), $112,500 (head of household), $150,000 (married filing jointly)
- The program was projected to cut child poverty in the U.S. by half and benefit more than 65 million children
How Does the Child Tax Credit Calculator Work?
Our calculator takes into account:
- Tax year — 2021 expanded rules or 2024 standard rules
- Filing status — single, married filing jointly, married filing separately, or head of household
- Adjusted Gross Income (AGI) — your total annual income before deductions
- Number of qualifying children — split into children under 6 and children aged 6–17
- Currency — results shown in USD by default, with support for 12 world currencies including Russian Ruble (₽)
The calculator automatically applies the relevant phase-out thresholds and computes both the non-refundable credit and the refundable Additional Child Tax Credit (ACTC) portion.
Am I Eligible for the Child Tax Credit?
To qualify, the child must:
- Be under age 17 at the end of the tax year (under age 18 under 2021 expanded rules)
- Be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these
- Have lived with you for more than half the year
- Not have provided more than half of their own financial support during the year
- Have a valid Social Security number
- Be a U.S. citizen, U.S. national, or U.S. resident alien
Income limits: The credit begins to phase out at $200,000 AGI for single filers and $400,000 for married couples filing jointly (2024 standard). Under 2021 expanded rules, the enhanced portion starts phasing out at lower thresholds.
Phase-Out Explained
If your income exceeds the threshold, your credit is reduced by $50 for every $1,000 (or fraction thereof) above the limit. Under 2021 rules, there are two phase-outs: first the expanded portion (down to $2,000 per child), then the standard CTC phase-out starting at $200,000/$400,000.