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Child Tax Credit Definition: How It Works and How to Claim It
What Is the Child Tax Credit?Child benefit payment not received
The Child Tax Credit is a tax benefit granted to American taxpayers with children under the age of 17 as of the end of the year. For the 2023 tax year (the tax return filed in 2024), the credit is $2,000 for each qualifying child.
You qualify for the full amount for each child if you earn up to $200,000 as an individual filer or $400,000 for joint filers. The benefit is phased out for parents with higher incomes.
This benefit has reverted to pre-2021 levels after two years during which emergency legislation related to the COVID-19 pandemic boosted the benefit to as much as $3,000 per child and $3,600 for children under age 6.
Key Takeaways
- The Child Tax Credit is a $2,000-per-child tax benefit claimed by filing Form 1040 and attaching Schedule 8812 to the return.
- To qualify for the credit, the taxpayer's dependent must generally be under the age of 17 and must have a Social Security number.
- The full benefit is available to people whose income did not exceed $400,000 f
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