Child Tax Credit (CTC)

The Child Tax Credit provides up to $2,000 per qualifying child under age 17. The credit is partially refundable, meaning you may receive a refund even if you have no tax liability. The refundable portion (Additional Child Tax Credit) is based on your earned income and is subject to certain limits.

Other Dependent Credit (ODC)

The Other Dependent Credit provides $500 per dependent who doesn't qualify for the Child Tax Credit, such as children age 17 or older, elderly parents, or other qualifying relatives. This credit is non-refundable, meaning it can only reduce your tax liability to zero.

Phaseout

Both credits begin to phase out when your Modified Adjusted Gross Income (MAGI) exceeds certain thresholds. For single filers and heads of household, the phaseout begins at $200,000. For married couples filing jointly, it begins at $400,000. The credit is reduced by $50 for every $1,000 of income over the threshold.

Refundable vs Non-Refundable

The non-refundable portion of the credit can reduce your tax liability to zero but cannot result in a refund. The refundable portion (Additional Child Tax Credit) can result in a refund even if you have no tax liability, but it's subject to earned income requirements and caps. This tool provides a simplified estimate of the refundable portion.

Why Actual Results May Differ

This simplified estimate does not account for all eligibility requirements, special rules, state credits, timing of income and expenses, carryovers, and many other factors that affect your actual tax return. Professional tax software or a tax professional will provide a more accurate calculation.