For tax year 2024 and 2025, the Child Tax Credit is $2,000 per qualifying child.
Video transcript:
Welcome to Tax Tips by TurboTax. So what exactly is the Child Tax Credit? The Child Tax Credit is a tax benefit that can reduce your federal income tax by up to $2,000 for each qualifying child under the age of 17. But who qualifies for the credit? To qualify, the child must meet the following criteria.
- One: The child must have been under 17 on the last day of the tax year.
- Two: the child must be a U.S. citizen, U.S. national, or U.S. resident alien.
- Three: the child must have lived with you for more than half the year, and the child must not have provided more than half of their own support.
- And four: the child must be related to you as your naturally born child, adopted child, stepchild, foster child, sibling, stepsibling, or a descendant of any of these, such as a grandchild, niece or nephew. Children born during the year or those who have passed away also qualify.
But how do you claim the credit? To claim the Child Tax Credit, you need to follow these three steps.
- One: Ensure the child meets all the qualifying criteria.
- Two: Include the child's information on your tax return.
- And three: File your federal income tax return, typically using form 1040.
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