The federal Child Tax Credit (CTC) begins to phase out at a Modified Adjusted Gross Income (MAGI) of $400,000 for married couples filing jointly and $200,000 for all other filers. The credit is reduced by $ 50 $ 5 0 for every $ 1 , 000 $ 1 , 0 0 0 (or fraction thereof) that your income exceeds these thresholds.
You qualify for the full amount of the Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return). Parents and guardians with higher incomes may be eligible to claim a partial credit.
For the federal Child Tax Credit (CTC), the full amount starts phasing out when Modified Adjusted Gross Income (MAGI) exceeds $200,000 for single filers and $400,000 for married couples filing jointly, with the credit reduced by $50 for every $1,000 over these thresholds, though some states offer separate CTCs with different income limits. To claim the federal CTC, you generally need a qualifying child with a Social Security Number and must meet other dependency rules, and you may get a partial credit even with higher income.
For the year 2026, the CTC is worth $2,200 for each qualifying child if your modified adjusted gross income is $400,000 or below (married filing jointly) or $200,000 or below (all other filers).
The Young Child Tax Credit (YCTC) provides up to $1,189 per eligible tax return for tax year 2025. YCTC may provide you with cash back or reduce any tax you owe. California families qualify with earned income of $32,900 or less.
Your child tax credit is likely $500 instead of $2,000 because they either turned 17 during the tax year, making them eligible for the Other Dependent Credit, or you might have mistakenly checked a box in your tax software, like saying their SSN isn't valid for employment or that they paid over half their own support, which triggers the lower credit amount, according to TurboTax support, TurboTax support, TurboTax support, and TurboTax support https://ttlc.intuit.index.php/community/taxes/discussion/my-daughter-is-17-but-is-still-jr-in-high-school-why-do-i-only-get-500-for-her-and-not-the-full-2000/00/3423950.
CCB amounts are based on adjusted family net income
The benefit amount you may receive based on your 2024 adjusted family net income: Less than $37,487. You get the maximum benefit amount for each eligible child.
Earn over £50K? The rate of income tax is higher, typically 40-45%. This means that earners over £50K are due tax relief of 40-45% on their contributions to the pension scheme. Here's an example.
Specifically, the Child Tax Credit was revised in the following ways for 2021: The credit amount was increased for 2021. The American Rescue Plan increased the amount of the Child Tax Credit from $2,000 to $3,600 for qualifying children under age 6, and $3,000 for other qualifying children under age 18.
For the federal Child Tax Credit (CTC), the full amount starts phasing out when Modified Adjusted Gross Income (MAGI) exceeds $200,000 for single filers and $400,000 for married couples filing jointly, with the credit reduced by $50 for every $1,000 over these thresholds, though some states offer separate CTCs with different income limits. To claim the federal CTC, you generally need a qualifying child with a Social Security Number and must meet other dependency rules, and you may get a partial credit even with higher income.
The credit is reduced by 5 percent of adjusted gross income over $200,000 for single parents ($400,000 for married couples).
Calculate your Child Tax Credit
However, the actual amount you qualify for per child depends on your MAGI. As we mentioned above, the CTC starts phasing out at $200,000 for single filers and $400,000 for married couples filing jointly. For every $1,000 you make above these limits, your CTC will be $50 less.
Lower-income taxpayers are eligible to receive a credit of up to $1,700 per child, although they may receive less depending on their earned income. In contrast, higher-income taxpayers, with sufficient income tax liability, are eligible for up to a $2,000 credit per child.
$50,000 a year is generally considered a middle-class income nationally, but whether it's "low income" depends heavily on your location and household size, as it can feel low in high-cost cities like San Francisco or New York but comfortable in lower-cost Midwest areas, especially for a single person. For federal purposes, it's well above the poverty line but might qualify for some assistance in very expensive areas.
By losing the allowance, it adds an extra 20% of tax (the basic rate) onto the income you earn between £100,000 and £125,140. For every £2 that you earn over £100,000, you lose £1 of your Personal Allowance. You also won't be eligible for additional rate tax until you earn a higher income over £125,141.
For the federal Child Tax Credit (CTC), the full amount starts phasing out when Modified Adjusted Gross Income (MAGI) exceeds $200,000 for single filers and $400,000 for married couples filing jointly, with the credit reduced by $50 for every $1,000 over these thresholds, though some states offer separate CTCs with different income limits. To claim the federal CTC, you generally need a qualifying child with a Social Security Number and must meet other dependency rules, and you may get a partial credit even with higher income.
The nonrefundable Child Tax Credit will lower your tax liability down to $0. So you must have a tax liability in order to claim it. If you did not have at least a $4,000 tax liability, you would not be eligible for the entire credit, but you could be eligible for the Additional Child Tax Credit.
With the ARRA, the earnings threshold for the refundable credit was reduced from earnings of $10,000 to $3,000. The Tax Cuts and Jobs Act of 2017 (TCJA) increased the credit to $2,000 per child and the phase-out threshold to $200,000 of MAGI ($400,000 for joint filers).
To receive the credit for Child and Dependent Care Expenses, the expenses had to have been paid for care to be provided so that you (and your spouse, if filing jointly) could work or look for work. If both spouses do not show "earned income" (W-2's, business income, etc.), you generally cannot claim the credit.
You might be disqualified from the Child Tax Credit (CTC) if your child is too old (17+), doesn't meet relationship/residency/citizenship tests, you claim them as a dependent but can't, or your income is too high (phasing out) or too low (limiting the refundable part), or if the non-custodial parent claims them. Other disqualifiers include the child having an ITIN instead of a Social Security Number (SSN) or filing a joint tax return.