What Is the Child Tax Credit?
This calculator applies to the United States for the 2024 tax year. The Child Tax Credit (CTC) is a federal tax benefit worth up to $2,000 per qualifying child under age 17. The credit begins to phase out once your Modified Adjusted Gross Income (MAGI) exceeds $400,000 for Married Filing Jointly, or $200,000 for all other filing statuses. This tool gives a quick estimate of your credit before phase-out reductions — it does not compute the refundable Additional Child Tax Credit limit or every eligibility rule.
How to Use It
Enter the number of qualifying children (under 17 at year end), choose your filing status, and type your MAGI. The calculator multiplies your children by $2,000, then subtracts 5% of the amount your income exceeds the threshold. The result is your estimated credit, never less than zero.
The Formula Explained
The credit equals
$$\text{Credit} = \max\!\left(0,\; 2000 \times n - 0.05 \cdot \max(0,\; \text{MAGI} - T)\right)$$Here \(n\) is qualifying children and \(T\) is the threshold ($400,000 MFJ or $200,000 otherwise). The 5% reduction means the credit drops by $50 for every $1,000 (or part thereof, rounded up in the real rules) above the threshold.
Worked Example
A married couple filing jointly with 3 children and a MAGI of $410,000: maximum credit = \(3 \times \$2{,}000 = \$6{,}000\). Excess income = \(\$410{,}000 - \$400{,}000 = \$10{,}000\). Reduction = \(5\% \times \$10{,}000 = \$500\). Estimated credit = $$\$6{,}000 - \$500 = \mathbf{\$5{,}500}$$
FAQ
Who counts as a qualifying child? Generally a child under 17 with a valid SSN who is your dependent and lived with you more than half the year.
Is the credit refundable? Up to $1,700 per child may be refundable in 2024 as the Additional Child Tax Credit; this estimator shows the gross credit, not the refundable cap.
What is MAGI? For most filers it is your Adjusted Gross Income plus certain foreign-income exclusions, which is often the same as your AGI.
