What Is the Child Tax Credit?
The Child Tax Credit is a US federal tax credit for taxpayers with qualifying children under 17. It directly reduces the tax owed, and part of it may be refundable for families with earned income. The credit phases out at higher incomes, and its amount and rules are set by law and can change.
Credit vs. Deduction
A credit reduces tax dollar for dollar, while a deduction reduces taxable income; a 1,000 credit lowers tax by 1,000.
Qualifying Child
Rules cover age, relationship, residency, support, and a valid identification number.
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🔗 Related Terms
More Taxes Terms
- Additional Medicare Tax
- Adjusted Gross Income (AGI)
- Alternative Minimum Tax (AMT)
- Capital Gains Tax
- Capital Loss
- Cost Basis
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.