Child Tax Credit 2024: Eligibility, Current Benefits, and Potential Changes in 2026

The Child Tax Credit (CTC) is a significant tax benefit for millions of American families, providing financial relief for those with dependents under the age of 17. As of 2024, the CTC remains a crucial component of the U.S. tax code, but it is set to undergo potential changes in 2026 unless Congress intervenes.

Currently, the CTC was increased to $2,000 per child under the 2017 Tax Cuts and Jobs Act, with a refundable portion of up to $1,400. This means that taxpayers can receive up to $1,400 even if they don’t owe any tax. The income thresholds for eligibility have also been raised to $200,000 for single parents and $400,000 for married couples.

To qualify for the CTC, taxpayers must meet specific criteria, including having a dependent under 17, providing more than half of the dependent’s financial support, and claiming the dependent on their tax return. The dependent must also be a U.S. citizen, U.S. national, or meet certain residency tests.

However, these enhanced benefits are set to expire at the end of 2025. If Congress does not extend these provisions, the CTC amount could revert to $1,000 per child, and the refundable portion could decrease to $1,000. Additionally, the income thresholds would return to $75,000 for single parents and $110,000 for married couples.

There is ongoing debate about the future of the CTC. Republicans have expressed support for maintaining the current $2,000 credit and income thresholds, while Democrats have advocated for the expansion made under the 2021 American Rescue Plan Act, which increased the credit to $3,000 for older children and $3,600 for younger children.

Roughly 17 million children under 17, or about a quarter of all U.S. children, are at risk of not benefiting from the full child tax credit in 2025 if the current changes expire. This highlights the importance of legislative action to ensure continued support for these families.