The Child Tax Credit (CTC) is a tax benefit provided to parents or guardians with dependent children, designed to reduce the amount of tax owed and help offset the costs of raising children. In the United States, the CTC is available for each qualifying child under the age of 17 at the end of the tax year. The credit amount is up to $2,000 per qualifying child for tax year 2024, with income limits for eligibility: single filers can claim the full credit up to $200,000 income, and married couples filing jointly up to $400,000, after which the credit phases out gradually

. The CTC is primarily a nonrefundable credit, meaning it can reduce your tax liability to zero but does not provide a refund beyond that. However, if the credit exceeds the amount of taxes owed, taxpayers may qualify for the Additional Child Tax Credit (ACTC), which is refundable and can provide a refund up to $1,700 per child, depending on earned income and other factors

. To qualify for the Child Tax Credit, the child must meet several criteria: be under 17, be a dependent claimed on the tax return, have a specified relationship to the taxpayer (such as a child, stepchild, sibling, or foster child), be a U.S. citizen, national, or resident alien, have lived with the taxpayer for more than half the year, and not provide more than half of their own financial support

. The CTC has been shown to significantly reduce child poverty. For example, expansions under the American Rescue Plan Act of 2021 increased the credit temporarily and made it fully refundable, which helped reduce child poverty by an estimated 26% in that year

. In summary, the Child Tax Credit is a tax credit aimed at helping families with children by reducing their tax burden and potentially providing refundable benefits if their tax liability is low or zero, subject to eligibility rules and income limits.