How Much Child Tax Credit Will I Get?
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What is the maximum Child Tax Credit?
The maximum Child Tax Credit is $1000 per qualifying child. (See Who is a qualifying child?) For example, if you have three qualifying children, your maximum Child Tax Credit is 3 x $1000 = $3000.
Note: The Child Tax Credit is in addition to the exemptions you may also take for your dependent children on your tax return.
What are the limits on the Child Tax Credit?
There are two limits on the amount of Child Tax Credit you can get:
Income:
The Child Tax Credit phases out if your modified adjusted gross income (MAGI) is greater than:
- $110,000 if married filing jointly
- $75,000 if single, head of household, or qualifying widower
- $55,000 if married filing separately
Your credit is reduced $50 for every $1000 that your MAGI exceeds these amounts. For example, if your income is $5000 higher, your credit is reduced by 5 x $50 = $250; if your income is $10,000 higher, your credit is reduced by 10 x $50 = $500. The higher your income, the greater the reduction, until the credit is eventually reduced to zero.
For an explanation of modified adjusted gross income, see Limits on the Credit - Modified AGI (Publication 972) on the IRS web site.
Tax liability:
The Child Tax Credit is a nonrefundable credit that lowers your taxes dollar for dollar. Therefore, you cannot claim a larger Child Tax Credit than the amount of taxes you owe. If your tax amount is zero, you cannot claim the Child Tax Credit. If the amount you owe in taxes is less than your maximum credit amount, you will get a reduced credit.
Note: If you cannot claim the full Child Tax Credit, you may be eligible for an Additional Child Tax Credit refund payment for the unused portion of the CTC.
You can find detailed information about the Child Tax Credit limits in the Child Tax Credit Worksheet included in the Form 1040 Instructions, Form 1040A Instructions, and Form 1040NR Instructions.
How much is the Additional Child Tax Credit?
The Additional Child Tax Credit is a refundable tax credit that allows you to get a refund payment from the government if you did not get the full Child Tax Credit because you didn't owe enough in taxes.
The Additional Child Tax Credit equals the unused portion of your Child Tax Credit, but not more than 15% of your family's earned income over $3000. Special rules apply if you have three or more qualifying children.
For example, if you have one qualifying child and no tax liability, your unused CTC amount is $1000. If your earned income was $8000, your Additional Child Tax Credit would equal 15% of $5000 ($8000 - $3000 = $5000) which equals $750. You would get an ACTC refund payment of $750 from the government after you filed your tax return.
You can find detailed instructions for computing the Additional Child Tax Credit, including the rules for families with three or more qualifying children, on Form 8812 - Additional Child Tax Credit on the IRS web site.
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