Child Tax Credit Calculator
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The federal Child Tax Credit (CTC) provides direct tax relief of up to $2,000 per qualifying child under age 17. A portion of this credit (up to $1,700 per child) is refundable as the Additional Child Tax Credit (ACTC) via IRS Schedule 8812, allowing low-to-middle-income working families to receive a tax refund even if their tax liability is zero.
Our free Child Tax Credit Calculator computes your total CTC credit, evaluates income phaseouts ($200,000 single / $400,000 married), and determines your refundable ACTC payment.
How to Calculate the Child Tax Credit (CTC)
CTC calculation involves multiplying the number of qualifying children by $2,000 and applying income phaseout reductions based on Modified Adjusted Gross Income (MAGI).
Maximum Baseline Credit Formula:
Maximum CTC = Number of Qualifying Children (Under Age 17) × $2,000
Income Phaseout Thresholds:
The credit phases out by $50 for every $1,000 (or fraction thereof) that MAGI exceeds:
- Married Filing Jointly: $400,000 MAGI Threshold
- Single / Head of Household / All Other Statuses: $200,000 MAGI Threshold
Phaseout Reduction = CEIL[ ( MAGI - Threshold ) / $1,000 ] × $50
Refundable Additional Child Tax Credit (ACTC) Formula:
If the credit exceeds total tax liability, the refundable ACTC portion equals:
ACTC Refund = MIN( $1,700 per child, 15% × [ Earned Income - $2,500 ] )
Child Tax Credit Income Phaseout & Refundability Limits
The table below summarizes CTC credit amounts across different MAGI income levels:
| Filing Status | MAGI Income Level | CTC Amount per Child | Max Refundable ACTC per Child |
|---|---|---|---|
| Single / Head of Household | Up to $200,000 | $2,000 per child | $1,700 per child |
| Single / Head of Household | $210,000 ($10k over threshold) | $1,500 per child | $1,500 per child |
| Married Filing Jointly | Up to $400,000 | $2,000 per child | $1,700 per child |
| Married Filing Jointly | $440,000 ($40k over threshold) | $0 per child (Fully phased out) | $0 |
Step-by-Step Calculation Example
A married couple filing jointly has 3 qualifying children (ages 5, 9, and 14), an Earned Income of $45,000, a MAGI of $45,000, and a pre-credit federal tax liability of $1,200:
- Number of Children: 3 Children
- Baseline CTC: $6,000 ($2,000 × 3 children)
- Pre-Credit Tax Liability: $1,200
Step 1: Apply Non-Refundable CTC Against Tax Liability
Tax Liability Offset = $1,200.00 (Reduces tax liability to $0)
Remaining Unused CTC = $6,000 - $1,200 = $4,800.00
Step 2: Calculate Refundable ACTC Based on Earned Income
Earned Income Formula = 15% × ( $45,000 - $2,500 ) = 15% × $42,500 = $6,375.00
ACTC Statutory Cap = 3 Children × $1,700 = $5,100.00
Step 3: Determine Final Refundable ACTC Amount
Refundable ACTC Tax Refund = MIN( $4,800 unused CTC, $5,100 cap, $6,375 income limit ) = $4,800.00
Result Summary:
The family wipes out their $1,200 tax bill and receives a direct $4,800 ACTC cash tax refund.
Frequently Asked Questions (FAQ)
What are the IRS qualifying child tests for the Child Tax Credit?
A qualifying child must be under age 17 at the end of the tax year, have a valid Social Security Number (SSN), be your son, daughter, stepchild, foster child, or sibling/descendant, live with you for more than half the year, and not provide more than half of their own financial support.
What is the Credit for Other Dependents (ODC)?
For dependents who do not qualify for the $2,000 CTC (such as children aged 17 or older, dependent college students, or elderly parents), the IRS offers a non-refundable Credit for Other Dependents (ODC) of up to $500 per dependent.
What happens to the Child Tax Credit after 2025?
Under current law, TCJA provisions expire at the end of 2025. Unless extended by Congress, the CTC is scheduled to revert to $1,000 per child with a lower phaseout threshold ($110,000 married filing jointly).