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What Is the Child Tax Credit?

Uncle Sam understands that having a baby can be expensive, so he’s thrown in some tax credits to help you get by.

Photo: Shutterstock / The Nest

The child tax credit is worth up to $1,000 for each qualifying child. This credit can be both a nonrefundable and a refundable credit. The refundable portion of the child tax credit is called the additional child tax credit.

To qualify for the child tax credit, both of these must apply:

  • The qualifying child must be under age 17 at the end of the year
  • The qualifying child must be a US citizen, US national or US resident

Once your modified adjusted gross income exceeds $110,000 (married filing jointly), $55,000 (married filing separately) or $75,000 (all other filing statuses), the credit amount decreases by $50 for every $1,000 (or fraction of $1,000) it exceeds the limit.

If your credit is limited by your tax and your earned income is more than $3,000, you might be eligible for the additional child tax credit. You also might be eligible for this credit if you have at least three eligible children and the Social Security and Medicare tax you paid is more than your earned income credit.

Ready to do your taxes? Head over to H&R Block and sign up to get a 20% discount on their tax services -- just for Nesties!