Child Tax Credit Calculator for 2023, 2024
The child tax credit is a credit that can reduce your Federal tax bill by up to $2,000 for every qualifying child.
The child tax credit calculator will show you exactly how much you can claim this year. It’s combined with a dependent’s calculator, so you can also add other dependents in your household.
Just answer a few basic questions, and you’ll find out how much you can potentially claim in a matter of minutes.
What is the Child Tax Credit?
The child tax credit is one of the most valuable tax credits for families with children under the age of 17.
The recent Tax Cuts and Jobs Act (TCJA) dramatically increased the income limits, so now, most families in America with qualifying children will have the chance to claim this credit.
The tax credit is not a deduction, so if you claim the full $2,000 and you owe $4,600 in Federal taxes, you’ll now only owe $2,600 to the Federal government.
How much will we get for Child Tax Credit?
Taxpayers with children between the ages of 6 and 17 were eligible for a $3,000 credit in 2021, thanks to the expanded child tax credit. The sum increased to $3,600 for kids younger than 6. The original amount of $2,000 per dependent child under the age of 16 will be reinstated in 2022.
Is this Tax Credit Refundable?
Before the overhaul of the tax system in December 2017, the tax credit was non-refundable, meaning that if you don’t owe anything to the IRS, you won’t get to benefit from this credit.
However, the child tax credit is now refundable up to a maximum amount of $1,400. So, in theory, you can get $1,400 back from the IRS.
Is Your Child Eligible for the Tax Credit?
There are six main tests that your child must pass to qualify for the tax credit. Here’s an overview:
- At the end of the tax year, your child must be under the age of 17.
- The child must be a direct descendent of you, which goes all the way to grandchildren and adopted children.
- More than half of their financial support must come from you, the taxpayer.
- You must claim your child as a dependent. Each child can only be claimed as a dependent on a single tax return.
- The child must be a US citizen or a US resident alien.
- Finally, they must have lived with you for more than half the tax year.
It’s all quite simple, but if you’re divorced, you may need to examine your affairs more closely and coordinate with the other parent who will claim the child as a dependent.
See How Much the Child Tax Credit Calculator Says You Can Get Back
If the calculator says you qualify, it’s a good idea to claim the child tax credit because it’s one of the most valuable tax credits available to families. Use the child tax credit calculator to find out how much you could be owed today.
Have you tried the child credit calculator yet?
If you haven’t received your W2 yet, you can get your W2 online with the Free W2 search and import tool from TurboTax.