Child & Dependent Tax Credit Estimator

The Child Tax Credit (CTC) is one of the most valuable tax benefits for American families. It provides up to $2,000 per qualifying child under age 17 (credit amounts may change—verify current limits at irs.gov). Unlike deductions that reduce taxable income, credits reduce your actual tax liability dollar-for-dollar.

There's also the Other Dependent Credit (ODC), worth $500 per dependentwho doesn't qualify for the Child Tax Credit—such as children 17 and older, elderly parents, or other qualifying relatives you support.

What makes the Child Tax Credit particularly powerful is that a portion is refundable. Even if you owe no federal income tax, you may receive a refundable amount as the Additional Child Tax Credit (ACTC)—actual cash back from the IRS (refundable limits adjust annually—verify at irs.gov).

This estimator helps you understand how much credit you may qualify for based on your income, filing status, and number of dependents. We use official IRS rules including income phaseouts to provide an accurate estimate.

Child Tax Credit (CTC) Basics

• Credit Amount: Up to $2,000 per qualifying child
• Age Requirement: Child must be under 17 at the end of the tax year
• Relationship: Your son, daughter, stepchild, foster child, sibling, or descendant
• Residency: Must live with you for more than half the year
• Support: Child cannot provide more than half of their own support
• Citizenship: Must be a U.S. citizen, U.S. national, or resident alien with valid SSN

Other Dependent Credit (ODC)

• Credit Amount: $500 per qualifying dependent
• Who Qualifies: Children 17+, elderly parents, other relatives you support
• Non-Refundable: Can only reduce tax liability to $0 (no cash refund)

Refundable vs. Non-Refundable Portions

The Child Tax Credit has two components:

• Non-Refundable Portion: Reduces your tax liability but can't take it below $0
• Refundable Portion (ACTC): A portion can be refunded even if you owe no tax (amount adjusts annually—verify at irs.gov)

The refundable portion is calculated as 15% of your earned income above $2,500, subject to annual caps (verify current limits at irs.gov).

Income Phaseout Thresholds

For every $1,000 of MAGI above the threshold, your credit is reduced by $50.

Step 1: Select Tax Year
Choose 2024 or 2025. Credit amounts and phaseout thresholds may vary slightly between years.

Step 2: Choose Filing Status
Select Single, Married Filing Jointly, Married Filing Separately, or Head of Household. This determines your phaseout threshold.

Step 3: Enter Your MAGI
Input your Modified Adjusted Gross Income. For most taxpayers, this is close to your AGI. The credit phases out at higher income levels.

Step 4: Enter Qualifying Children
Count children under 17 who meet all requirements (relationship, residency, support, citizenship). Each qualifying child adds up to $2,000 to your credit.

Step 5: Enter Other Dependents
Count dependents who don't qualify for CTC—children 17+, elderly parents, etc. Each adds $500.

Step 6: Optional – Enter Tax Liability
For a more accurate refundable credit estimate, enter your tax liability before credits. This helps calculate how much of the credit is refundable vs. non-refundable.

Step 7: Review Results
See your total credit, phaseout amount, and breakdown of refundable vs. non-refundable portions.

Step 1: Calculate Base Credit

Base Credit = (Qualifying Children × $2,000) + (Other Dependents × $500)

Step 2: Determine Phaseout

Amount Over Threshold = MAGI − Phaseout Threshold
Phaseout Reduction = (Amount Over Threshold ÷ $1,000) × $50

The phaseout is rounded up to the next $1,000 increment.

Step 3: Calculate Net Credit

Net Credit = Base Credit − Phaseout Reduction (minimum $0)

Step 4: Split Refundable/Non-Refundable

For the Child Tax Credit portion:

• Non-Refundable: Up to your tax liability (max $2,000 × children)
• Refundable (ACTC): Lesser of (a) 15% of earned income over $2,500, or (b) annual cap per child (verify at irs.gov)

Example: 2 Children, $80,000 MAGI, Single

1. Base Credit: 2 × $2,000 = $4,000
2. Phaseout: $80,000 - $200,000 = Below threshold (no phaseout)
3. Net Credit: $4,000
4. If tax liability is $3,000: $3,000 non-refundable + up to $1,000 refundable

1. Planning for a New Baby

Expecting a child? A baby born anytime during the tax year qualifies for the full $2,000 credit for that year. Use this tool to estimate the tax savings and plan accordingly.

2. Child Turning 17

When a child turns 17, they no longer qualify for the $2,000 CTC but may qualify for the $500 Other Dependent Credit. Use this tool to see the impact on your taxes.

3. High-Income Families

If your income exceeds $200,000 (single) or $400,000 (married joint), your credit phases out. This estimator shows exactly how much phaseout affects your credit.

4. Supporting Elderly Parents

If you financially support an elderly parent who lives with you, they may qualify for the $500 Other Dependent Credit. Model this scenario to see the tax benefit.

5. Divorce/Custody Situations

Only one parent can claim the Child Tax Credit per child. Use this tool to compare scenarios— sometimes it's more beneficial for the higher-earning parent to claim the credit (before phaseout).

6. Low-Income Families

If you have little or no tax liability, the refundable portion (ACTC) can provide significant cash back. This tool shows how much of your credit is refundable.

7. Year-End Tax Planning

Near year-end, estimate your credit to understand total tax savings. Combine with other tools to plan Roth conversions, retirement contributions, or income timing.

• ❌ Assuming you get $2,000 per child regardless of tax liability

  The CTC is partially non-refundable. If you have $1,500 tax liability and $4,000 in CTC, you won't get the full $4,000—the non-refundable portion maxes out at your liability.

• ❌ Forgetting the age 17 cutoff

  A child must be under 17 at the end of the tax year. If your child turns 17 on December 31, they don't qualify for the $2,000 CTC (but may qualify for the $500 ODC).

• ❌ Not having a valid Social Security Number

  The child must have a valid SSN issued before the tax return due date. An ITIN (Individual Taxpayer Identification Number) doesn't qualify for the CTC.

• ❌ Both parents claiming the same child

  Only one taxpayer can claim a child as a dependent. If divorced or separated, coordinate with the other parent to avoid IRS issues.

• ❌ Confusing MAGI with taxable income

  The phaseout is based on Modified AGI, not taxable income. For most people, MAGI equals AGI, but certain adjustments can affect it.

• ❌ Ignoring the earned income requirement for ACTC

  The refundable portion (ACTC) requires earned income above $2,500. If your income is all from investments or retirement, the refundable portion may be limited.

• 💡 Coordinate with Earned Income Tax Credit (EITC)

  Low-to-moderate income families may qualify for both CTC and EITC. The EITC can provide additional refundable credits worth thousands of dollars.

• 💡 Consider the impact of Roth conversions

  Roth conversions increase MAGI. If you're near the phaseout threshold, a large conversion could reduce your child tax credit. Time conversions strategically.

• 💡 Maximize earned income for ACTC

  If you have low earned income, increasing it (part-time work, gig income) can boost the refundable ACTC. The 15% rate on income over $2,500 adds up.

• 💡 Plan for the phaseout "cliff"

  At $200K (single) or $400K (married), the credit starts phasing out at $50 per $1,000. A small income change near the threshold can cost $50+ in credits.

• 💡 Understand potential legislative changes

  Tax credit amounts and rules may change based on legislation. Stay informed about current rules and plan for potential changes by checking irs.gov.

• 💡 Use the credit to reduce withholding

  If you're entitled to large child tax credits, adjust your W-4 to reduce withholding. This increases monthly cash flow rather than waiting for a large refund.