Federal Child Tax Credit Calculator

Federal Child Tax Credit:

\[ Credit = \$2,000 \text{ per child} - \text{Phaseout} \]

Estimated Child Tax Credit:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Federal Child Tax Credit?

The Federal Child Tax Credit (CTC) is a tax benefit that helps families with qualifying children get a tax break of up to \$2,000 per child. The credit is partially refundable as the Additional Child Tax Credit.

2. How Does the Calculator Work?

The calculator uses the following formula:

\[ Credit = \$2,000 \times \text{Number of Children} - \text{Phaseout Reduction} \]

Where:

Phaseout begins at \$200,000 (single/HoH) or \$400,000 (married)
Credit reduces by \$50 for each \$1,000 of income above the threshold
Minimum credit is \$0

Explanation: The credit phases out gradually for higher-income taxpayers, with different thresholds based on filing status.

3. Importance of the Child Tax Credit

Details: The CTC significantly reduces tax liability for families with children and can provide refundable credit for those with little or no tax liability.

4. Using the Calculator

Tips: Enter your Modified Adjusted Gross Income (MAGI), number of qualifying children, and filing status. The calculator will estimate your available credit.

5. Frequently Asked Questions (FAQ)

Q1: What counts as a qualifying child?
A: Generally, a child under 17 at year-end who meets relationship, residency, and support tests.

Q2: Is any portion of the credit refundable?
A: Yes, up to \$1,400 per child may be refundable as the Additional Child Tax Credit.

Q3: Are there income limits?
A: No strict limits, but the credit phases out for higher incomes starting at \$200,000/\$400,000.

Q4: Can I claim the credit for more than one child?
A: Yes, you can claim for each qualifying child, with no upper limit on number of children.

Q5: What if my credit is reduced to zero?
A: You may still qualify for the Additional Child Tax Credit if you have earned income above \$2,500.