Child Tax Credit
Definition
A tax credit of up to $2,000 per qualifying child under age 17. Up to $1,700 of the credit is refundable (Additional Child Tax Credit). The credit begins to phase out at $200,000 of modified AGI ($400,000 for married filing jointly). To qualify, the child must have a Social Security number, be claimed as your dependent, and live with you for more than half the year.
Example
A married couple with two children under 17 and AGI of $150,000 can claim a $4,000 Child Tax Credit, directly reducing their tax bill.
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