What is a Child tax credit?
A Child tax credit is a federal tax benefit that allows eligible families to reduce their tax liability by up to $2,200 per qualifying child under age 17. Under the One Big Beautiful Bill Act, this credit becomes permanent with inflation adjustments starting in 2025, preventing the scheduled reduction to $1,000 per child. The credit phases out for single filers earning over $200,000 and married couples filing jointly over $400,000 in adjusted gross income. Families may receive up to $1,400 per child as a refundable credit even when owing no taxes. Enhanced credit benefits can be coordinated with Child & dependent tax credits and support Child Traditional IRA contributions for long-term wealth building.
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