1. What is the Child Tax Credit?

The Child Tax Credit is a tax benefit for families with qualifying children under age 17. For 2023, the credit is worth up to $2,000 per qualifying child, with up to $1,600 potentially refundable as the Additional Child Tax Credit.

2. How Does the Calculator Work?

The calculator uses the HR Block formula:

The calculator then applies phase-out rules:

• Credit reduces by $50 for each $1,000 of income over threshold
• Thresholds: $200,000 (Single/HoH) or $400,000 (Married Filing Jointly)

3. Importance of Child Tax Credit

Details: The Child Tax Credit significantly reduces tax liability for families with children and may result in a refund even if no taxes are owed.

4. Using the Calculator

Tips: Enter the number of qualifying children under 17, other dependents, your AGI, and filing status. The calculator will estimate your Child Tax Credit.

5. Frequently Asked Questions (FAQ)

Q1: Who qualifies as a child for the credit?
A: Must be under 17 at year-end, your dependent, related to you, live with you >½ year, and not provide >½ of their own support.

Q2: What's the difference between qualifying children and other dependents?
A: Qualifying children under 17 get $2,000 each; other dependents (including children 17+) get $500 each.

Q3: Is any part of the credit refundable?
A: Up to $1,600 per qualifying child may be refundable as the Additional Child Tax Credit.

Q4: What if my income is too high?
A: The credit phases out by 5% of AGI over the threshold ($200k/$400k).

Q5: Can I claim the credit if I have no taxable income?
A: You may qualify for the refundable portion if you have earned income above $2,500.