Who Gets the Child Tax Credit and How to Know if Your Situation Qualifies

The basic rules for the Child Tax Credit

The Child Tax Credit goes to people who claim one or more children on their federal tax return. You need to be the child's parent, legal guardian, or in some cases a relative who has lived with the child for the full year. The child must be under 17 at the end of the tax year, be a U.S. citizen, national, or resident alien, and have a valid Social Security number.

Your income matters. For 2024, the credit starts to shrink if your modified adjusted gross income (MAGI) goes above $400,000 if you're married filing jointly, or $200,000 if you're single, head of household, or married filing separately. The credit reduces by $50 for every $1,000 (or fraction of $1,000) over that threshold.

You also have to claim the child as a dependent on your return. If another person — like an ex-partner or grandparent — claims the child, you cannot claim the credit for that child that year, even if you paid for most of their expenses.

Key Takeaways

• The child must be under 17 at the end of the tax year, be your dependent, and have a valid Social Security number.
• Your income above $400,000 (married filing jointly) or $200,000 (single) reduces the credit amount, but does not eliminate it entirely.
• Only one person can claim each child; if someone else claims the child as a dependent, you cannot claim the credit.
• The credit amount is $2,000 per child for 2024, though this may change in future tax years.
• You do not have to have earned income to claim the credit, but you do have to file a tax return.

Income limits and how they affect your credit

The income threshold is based on your MAGI, which is usually your adjusted gross income (AGI) from your tax return. If you are married filing jointly and your MAGI is $400,000 or less, the income limit does not reduce your credit. If it is $400,001 to $401,000, your credit reduces by $50. If it is $401,001 to $402,000, your credit reduces by $100, and so on.

For single filers, head of household, or married filing separately, the threshold is $200,000. The same $50-per-$1,000 reduction applies. This means even high-income families can still receive part of the credit — it does not disappear at the threshold, it just gets smaller.

If you are unsure whether your income will cross the threshold, you can estimate your MAGI using your most recent pay stubs and any other income sources (self-employment, rental income, investment income). The IRS worksheet on Form 1040 instructions walks through the calculation.

Situations where you cannot claim the credit

You cannot claim the credit if someone else claims the child as a dependent. This often happens in custody situations: only the parent who claims the child on their return can claim the credit. If you and an ex-partner share custody, you need to decide who will claim the child each year, or alternate years. The IRS does not split the credit between two parents.

You also cannot claim the credit if the child is not a U.S. citizen, national, or resident alien. A child with an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number does not may have access to. The child's Social Security number must be valid and issued by the Social Security Administration.

If you are a nonresident alien (someone who does not meet the substantial presence test for U.S. residency), you generally cannot claim the credit. There are narrow exceptions for residents of Canada or Mexico, but most nonresident aliens are not may be able to access.

Dependent status and who counts as your child

The child must be your dependent — meaning you claim them on your tax return and they meet the IRS definition of a may have access to child. A may have access to child is someone who is related to you (your biological child, stepchild, adopted child, or sibling), lives with you for more than half the year, is under 17 at the end of the tax year, and does not provide more than half their own financial support.

If you are a grandparent, aunt, uncle, or other relative raising a child, you can claim the credit if the child meets the dependent requirements. The child does not have to be biologically related — a stepchild or adopted child counts. Foster children count if they are placed with you by an authorized agency or court order.

The child must live with you for more than half the year. Temporary absences — for school, medical treatment, or vacation — do not count against this requirement. But if the child lives with the other parent for more than half the year, you cannot claim them as a dependent, and therefore cannot claim the credit.

What happens if your circumstances change mid-year

If a child is born during the tax year, you can claim the credit for that child. The child does not have to have been born on January 1 — even a child born on December 31 counts for that tax year. You will need the child's Social Security number to file your return, which you can obtain from the Social Security Administration after the birth.

If a child turns 17 during the tax year, you can still claim the credit for that year. The rule is based on the child's age on December 31 of the tax year. If they turn 17 on December 31, they are considered 17 for the whole year and you cannot claim the credit. If they turn 17 on any earlier date, you can claim it.

If custody changes during the year — for example, a child moves from one parent to another — only the parent who has custody for more than half the year can claim the child as a dependent and therefore claim the credit. If custody is exactly split (six months each), the parent with the higher income can claim the child, unless the other parent has a written agreement allowing them to claim it.

Self-employment income and the credit

You do not have to have earned income from a job to claim the credit. If you are self-employed, retired, receiving Social Security, or have only investment income, you can still claim the credit as long as your MAGI is below the threshold and the child meets all other requirements. The credit is not limited to people with W-2 wages.

However, you do have to file a federal tax return. Even if you have no tax liability, filing the return is required to claim the credit. If your income is very low, you may have no tax to pay, but you still need to submit the return to receive the credit.

If you are self-employed, your MAGI includes your net self-employment income. This is your gross business income minus business expenses and the self-employment tax deduction. Use Schedule C (Profit or Loss from Business) to calculate this, then transfer it to your Form 1040.

Frequently Asked Questions

Can I claim the credit if the child does not live with me full-time?

The child must live with you for more than half the year. If the child lives with you for six months and one day, you meet the requirement. Temporary absences for school, medical care, or vacation do not count against you. But if the child spends more than half the year with the other parent, you cannot claim the credit.

What if I do not have a Social Security number for the child yet?

You cannot file your return and claim the credit without the child's Social Security number. If the child was born during the year, you can request a number from the Social Security Administration using Form SS-5. You may be able to file your return late once you receive the number, or amend your return if you already filed without it.

Does the credit go away if I earn too much money?

No. The credit reduces by $50 for every $1,000 over the income threshold, but it does not disappear. Even at very high incomes, you receive some credit. For example, at $450,000 MAGI (married filing jointly), you would lose $2,500 of the credit but still receive $1,500 per child.

Can two parents both claim the same child?

No. Only one person can claim each child as a dependent in a given tax year. If both parents file claiming the same child, the IRS will reject one return or ask for clarification. You and the other parent must decide who will claim the child, or alternate years if you have a custody agreement that allows it.

Do I need to report the credit when I file my taxes?

Yes. You claim the credit on Form 1040 (line 24) or Form 1040-SR if you are 65 or older. You will also need to provide the child's name and Social Security number on Schedule 8812 if you are claiming additional child tax credits or if your credit exceeds your tax liability.