Child Tax Credit 2025 Calculator

Child Tax Credit Formula:

\[ CTC = \$2,000 \times N_{children} - \text{Phaseout} (\$50 \text{ per } \$1,000 \text{ over } \$200k/\$400k \text{ AGI}) + \text{Refundable} \min(15\% (\text{Earned Inc} - \$2,500), \$1,700 \text{ per child}) \]

Number of Children (N_children):

children

Adjusted Gross Income (AGI):

USD

Filing Status:

Earned Income:

USD

Child Tax Credit (CTC):

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1. What is the Child Tax Credit?

The Child Tax Credit (CTC) is a US federal tax credit for qualifying children under age 17. It provides financial assistance to families with dependent children through both non-refundable and refundable components.

2. How Does the Calculator Work?

The calculator uses the Child Tax Credit formula:

Where:

$ N_{children} $ — Number of qualifying children
$ \text{Phaseout} $ — Reduction based on AGI thresholds ($200k single, $400k married)
$ \text{Earned Inc} $ — Earned income for refundable portion calculation
$2,000 — Base credit per child
$50 — Phaseout amount per $1,000 over threshold
15% — Refundable percentage of earned income over $2,500
$1,700 — Maximum refundable amount per child

Explanation: The credit consists of a base amount reduced by income phaseout, plus a refundable portion based on earned income.

3. Importance of CTC Calculation

Details: Accurate CTC calculation helps families maximize their tax benefits and understand their eligibility for both non-refundable tax relief and potential refunds.

4. Using the Calculator

Tips: Enter the number of qualifying children under 17, your Adjusted Gross Income (AGI), filing status, and earned income. All values must be valid (children ≥ 0, AGI ≥ 0, earned income ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: Who qualifies as a child for the CTC?
A: Children must be under age 17 at the end of the tax year, be your dependent, have a valid SSN, and meet relationship and residency tests.

Q2: What are the income limits for the full credit?
A: Full $2,000 per child available for AGI below $200,000 (single) or $400,000 (married filing jointly).

Q3: What is the difference between refundable and non-refundable portions?
A: Non-refundable reduces tax liability to zero; refundable (Additional Child Tax Credit) can result in a refund even with zero tax liability.

Q4: Can I claim the CTC if I have no earned income?
A: You may claim the non-refundable portion if you have tax liability, but the refundable portion requires at least $2,500 in earned income.

Q5: Are there state child tax credits?
A: Some states offer additional child tax credits. Check your state's tax laws for specific provisions.