What is the child tax credit?

The child tax credit is a federal tax credit available in Washington to taxpayers with dependent children under the age of 17. The credit reduces taxable income and can result in a refund check from the Internal Revenue Service (IRS). The credit can be as high as $2,000 per qualifying child. In order to qualify for the credit, taxpayers must meet certain criteria. The child must be claimed as a dependent on the taxpayer’s federal income tax return. The child must also be a U.S. citizen, a U.S. national, or a resident of the U.S. or its possessions. Additionally, the child must be under the age of 17 at the end of the tax year. The amount of the credit is dependent on the taxpayer’s income, with higher earners receiving a limited amount of credit. The amount of credit is reduced between modified adjusted gross income of $200,000 - $400,000 for single filers and $400,000 - $490,000 for joint filers. For those taxpayers with income over the threshold, the child tax credit is reduced dollar-for-dollar for every dollar of income above the threshold. The credit can be used to reduce the taxpayer’s liability, or it can be refundable, meaning that if the taxpayer has no liability or the credit exceeds the amount owed, the IRS will send a refund check for the balance. Additionally, taxpayers may be eligible to receive the additional child tax credit, which could result in an even larger refund.

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What is the child tax credit?

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