Automated Tax Credit - Tax Debt Resolution
Glossary

Child Tax Credit

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The Child Tax Credit (CTC) is a federal tax credit designed to provide financial relief to parents or guardians by reducing their tax liability for each qualifying child. For the 2023 tax year, the credit amount is up to $2,000 per qualifying child under the age of 17.

The credit is partially refundable, meaning taxpayers who owe little to no tax can still receive a portion of the credit as a refund. The Additional Child Tax Credit allows eligible taxpayers to receive up to $1,500 of the credit as a refund if the full credit exceeds their tax liability.

To qualify for the Child Tax Credit, the child must meet the following criteria:

  • Be under the age of 17 at the end of the tax year.
  • Be a dependent claimed on the taxpayer’s return.
  • Have a valid Social Security Number (SSN).
  • Live with the taxpayer for more than half of the year.
  • Provide less than half of their own financial support.

The Child Tax Credit phases out for high-income earners, beginning at $200,000 for single filers and $400,000 for married couples filing jointly.

Claiming the Child Tax Credit can significantly reduce the tax burden for families, providing much-needed financial relief. Understanding eligibility and keeping accurate records can ensure taxpayers maximize this valuable credit.

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