What is the Child Tax Credit?
If you have kids, you might qualify for the Child Tax Credit, which can reduce your tax bill by up to $2,000 per qualifying child. The 2017 Tax Cuts and Jobs Act (aka "tax reform") doubled the per-child credit amount from $1,000 in 2017 and prior tax years.
To qualify for the Child Tax Credit in 2018, your child must fit all of these requirements:
- Born after December 31, 2001
- Is your son, daughter, stepchild, foster child, adopted child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, a grandchild, niece, or nephew)
- Has his or her own Social Security Number
- Children with ITINs don't qualify, but may instead be eligible for the $500 Credit for Other Dependents
- Lived with you for more than half the year in 2018
- Didn't support him/herself (i.e., didn't pay more than half their own expenses)
- Is a U.S. citizen, U.S. national, or U.S. resident alien
- Residents of Canada or Mexico wouldn't qualify
The $2,000 per-child credit is reduced once your AGI reaches $200,000 (or $400,000 if you're filing jointly with your spouse).
Tip: To get an estimate of tax reform's impact on your 2018 tax bill, use TaxCaster. Or, try the new Tax Reform Calculator for Educational Purposes, an interactive tool which uses aggregated TurboTax data to give you a clearer picture of how tax reform affects others like you based on your income, marital status, and number of dependents.