Additional Child Tax Credit Increased

The Internal Revenue Code provides a Child Tax Credit for each of a taxpayer’s qualifying child. A qualifying child, for purposes of the Child Tax Credit, is a child who:

•Is the taxpayer’s son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendent of any of them;

•Is under age 17 at the end of the tax year;

•Does not provide more than one half of his or her own support during the year;

•Lives with the taxpayer for more than half of the year;

•Is claimed as a dependent on the taxpayer’s return;

•Does not file a joint return for the year, or files it only as a claim for refund; and

•Is a U.S. citizen, a U.S. national, or a resident of the United States.

The Child Tax Credit is $2,000 but is reduced by $50 for each $1,000 (or fraction) by which the taxpayer’s MAGI exceeds the threshold amount. The threshold amount is:

•$400,000 for taxpayers filing as married filing jointly; and

•$200,000 for taxpayers filing as other than married filing jointly.

If a child tax credit is reduced because of the taxpayer’s high MAGI or because the taxpayer’s tax liability is lower than the credit to which the taxpayer would otherwise be eligible, the additional child tax credit may be payable. The additional child tax credit is a credit for certain individuals who get less than the full amount of the child tax credit. Unlike the child tax credit, the additional child tax credit is a refundable tax credit and, for 2024, is $1,700.