1. What is the Child Tax Credit?

The Child Tax Credit (CTC) is a tax benefit for families with qualifying children. It reduces your federal income tax liability dollar-for-dollar and may be partially refundable.

2. How Does the Calculator Work?

The calculator uses the Child Tax Credit formula:

Where:

• \( Children \) — Number of qualifying children
• \( Phase\_Out \) — Reduction amount based on modified adjusted gross income

Explanation: The credit provides $2,000 per qualifying child, but may be reduced for higher-income families through phase-out rules.

3. Importance of CTC Calculation

Details: Accurate CTC calculation helps families understand their potential tax savings and plan their finances accordingly.

4. Using the Calculator

Tips: Enter the number of qualifying children and the phase-out amount (if any) based on your income level. Both values must be non-negative.

5. Frequently Asked Questions (FAQ)

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

Q2: What are the income limits for the CTC?
A: The credit begins to phase out at $200,000 ($400,000 for married filing jointly) of modified adjusted gross income.

Q3: Is any part of the CTC refundable?
A: Up to $1,600 per qualifying child may be refundable as the Additional Child Tax Credit for 2023.

Q4: Can I claim the CTC if I have no tax liability?
A: You may qualify for the refundable portion even if you owe no tax, provided you meet income requirements.

Q5: Are there other child-related tax benefits?
A: Yes, you may also qualify for the Child and Dependent Care Credit or the Earned Income Tax Credit.