If you’re a parent or guardian trying to manage your expenses, there’s a helpful benefit that could give your family a big financial boost—even if you didn’t earn much in 2024. This benefit is called the Child Tax Credit, and it might be exactly what you need to get some money back during tax time.
What Is the Child Tax Credit?
The Child Tax Credit (CTC) is a federal tax benefit for families with children. For the 2024 tax year, you can claim up to $2,000 for every child under the age of 17. Even if you don’t owe taxes, you may still get a refund of up to $1,700 per child. This refundable portion is designed to help low-income families who earn little or no income.
You don’t need to pay taxes or have a job to qualify. According to official rules, you may be eligible even if you had no income in 2024. This credit can reduce your tax bill or provide a refund, which can really help with your household budget.
Who Can Claim the Child Tax Credit?
To qualify, you must meet the following rules:
- The child must be under 17 at the end of 2024.
- The child must have a valid Social Security Number (SSN).
- You must be the child’s parent, step-parent, adopted parent, grandparent, or sibling.
- The child must have lived with you in the U.S. for more than 6 months in 2024.
- You must have provided more than half of the child’s support.
- Only one person can claim each child. Usually, the person who lived with the child the longest gets priority.
Your income should be below:
- $200,000 if you’re filing as a single person.
- $400,000 if you’re filing jointly with a spouse.
Special Child and Dependent Care Credit in New York
If you live in New York, there’s another credit you can claim if you paid for childcare in 2024. This is called the Child and Dependent Care Credit, and it can be claimed along with the federal credit.
To qualify for this in New York:
- Your child must be under 4 years old.
- Your federal adjusted gross income should be below $30,000.
- You must qualify for the state credit to claim the municipal credit as well.
The municipal benefit is worth 75% of the New York state credit. Even if you only lived in New York for part of the year, you may still qualify for a refundable portion. You don’t need an SSN for the child for the local credit, but the filer must have an ITIN or SSN.
Who Cannot Claim the Credit?
You cannot claim this credit if:
- You are claimed as a dependent on someone else’s tax return.
- You are married and file separately (special rules apply).
- Your income is too high based on federal or state rules.
How to Apply for the Child Tax Credit
To apply for the federal Child Tax Credit, use Form 1040 or 1040-SR. You’ll need your child’s SSN or ATIN (for adopted children).
For the New York Child and Dependent Care Credit:
- Use Form IT-216 to report your childcare expenses.
- Attach receipts or bills from daycares or caregivers.
- Then transfer the credit amount to your municipal return.
For the New York Family Credit, use Form IT-201 (residents) or Form IT-203 (non-residents). The amount depends on the number of dependents and is calculated using the official tables.