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Family & ChildcareIRS IRC § 24

Child Tax Credit Calculator

Calculate your federal Child Tax Credit (CTC) under IRC § 24, including the refundable Additional Child Tax Credit (ACTC) and high-income phase-outs.

IRS IRC § 24 Child Tax Credit (CTC) & ACTC

Total Child Tax Credit
—
annual tax savings
Max Refundable (ACTC)
—
cash refund eligible
Phase-Out Reduction
—
$50 per $1k excess
Monthly Value
—
cash flow equivalent

IRS Child Tax Credit Formula

CTC = ($2,000 × Qualifying Children Under 17) - [($50 for every $1,000 MAGI exceeds $400k MFJ / $200k Single)]
  • Credit Amount: Up to $2,000 for each qualifying child who is under age 17 at the end of the tax year and holds a valid SSN.
  • High-Income Phase-Out: Begins at $400,000 Modified AGI for Married Filing Jointly, and $200,000 for all other filing statuses. Reduced by $50 for each $1,000 over threshold.
  • Refundable ACTC: If the credit exceeds your tax liability, up to $1,700 per child is refundable as the Additional Child Tax Credit (calculated as 15% of earned income above $2,500).

Step-by-Step Worked Example

Scenario: Married couple filing jointly with 3 qualifying children under 17, MAGI of $110,000, and $5,500 tax liability

Calculation Steps:

  1. Maximum Potential Credit = 3 × $2,000 = $6,000
  2. Phase-out Threshold = $400,000 (MAGI of $110,000 is well below threshold, phase-out = $0)
  3. Non-refundable portion applied against tax = $5,500
  4. Remaining unused credit = $6,000 - $5,500 = $500
  5. Refundable ACTC portion = $500 (fully refunded as cash)
Result: The family receives the full $6,000 Child Tax Credit ($5,500 wiping out tax liability + $500 cash refund).

How to Use This Calculator

  1. 1Select your tax filing status (Single, Head of Household, or Married Filing Jointly).
  2. 2Enter the number of qualifying dependent children under age 17.
  3. 3Input your household Modified Adjusted Gross Income (MAGI).

Assumptions & Limitations

  • Children must be US citizens or nationals under age 17 who lived with you for more than half the year.

Frequently Asked Questions

What are the income phase-out limits for the Child Tax Credit?

The federal Child Tax Credit begins phasing out at $400,000 for married couples filing jointly and $200,000 for single and head-of-household filers. The credit decreases by $50 for every $1,000 of income above those limits.

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