The Child Tax Credit: Current Law
June 22, 2020
This report provides an overview of the child tax credit under current law, including temporary
changes made by the 2017 tax revision (P.L. 115-97).
Margot L. Crandall-Hollick
Acting Section Research
When calculating the total amount of federal income taxes owed, eligible taxpayers can reduce
Manager
their federal income tax liability by the amount of the child tax credit. Currently, eligible families

that claim the child tax credit can subtract up to $2,000 per qualifying child from their federal
income tax liability. The maximum amount of credit a family can receive is equal to the number

of qualifying children in a family multiplied by $2,000. If a family’s tax liability is less than the
value of their child tax credit, they may be eligible for a refundable credit calculated using the earned income formula. Under
this formula, a family is eligible for a refund equal to 15% of their earnings in excess of $2,500, up to the maximum amount
of the refundable portion of the credit. The maximum amount of the refundable portion of the credit is $1,400 per qualifying
child. The credit phases out for single parents with income over $200,000 and married couples with income over $400,000.
Many of these parameters are scheduled to expire at the end of 2025 under P.L. 115-97.
The child tax credit was created in 1997 by the Taxpayer Relief Act of 1997 (P.L. 105-34) to help ease the financial burden
that families incur when they have children. Like other tax credits, the child tax credit reduces tax liability dollar for do llar of
the value of the credit. Initially the child tax credit was a nonrefundable credit for most families. A nonrefundable tax credit
can only reduce a taxpayer’s income tax liability to zero, while a refundable tax credit can exceed a taxpayer’s income tax
liability, providing a cash payment to low-income taxpayers who owe little or no income tax.
Since it was first enacted, the child tax credit has undergone significant changes. Most recently at the end of 2017, Congres s
expanded the credit, especially for middle- and upper-income taxpayers, by doubling the credit amount and more than
tripling the income level at which the credit begins to phase out. Additionally, although comparatively more modest, changes
were made to the refundable portion of the credit as well, including increasing the refundable credit amount from $1,000 to
$1,400 per child and lowering the refundability threshold from $3,000 to $2,500. These changes are scheduled to be in effect
from 2018 through the end of 2025.
Estimates from the IRS indicate that the total dollar amount of the child tax credit has increased significantly since enactment
from approximately $22 billion to $51 billion for 2017. These estimates do not include the impact of recent legislative
changes made by P.L. 115-97, which will, all else being equal, expand the total cost of this tax benefit.
The Tax Policy Center (TPC) estimated the distribution of the child tax credit by income level for 2019 under current law
(including the changes made by P.L. 115-97) and found that the majority of child tax credit dollars will go to taxpayers with
more than $75,000 of income, with nearly one-third of the benefit going to taxpayers with income between $100,000 and
$200,000. In comparison, a relatively small share will go to very-low-income or very-high-income taxpayers. TPC also
estimated that the vast majority of taxpayers with children will receive the child tax credit. Slightly less than half of the
lowest-income taxpayers with children will receive the credit and no taxpayers with children and income over $1 million will
receive the credit. Finally, TPC estimated that taxpayers with income between $100,000 and $200,000 will on average
receive the largest credit of over $3,000. Taxpayers with children and income under $20,000 will receive on average a credit
of less than $1,000, while the wealthiest taxpayers with children will receive on average a credit of $10.
Congressional Research Service

link to page 4 link to page 5 link to page 5 The Child Tax Credit: Current Law

Introduction
The child tax credit was created in 1997 by the Taxpayer Relief Act of 1997 (P.L. 105-34) to help
ease the financial burden that families incur when they have children. Like other tax credits, the
child tax credit reduces tax liability dollar for dollar of the value of the credit. Initial y the child
tax credit was a nonrefundable credit for most families. A nonrefundable tax credit can only
reduce a taxpayer’s income tax liability to zero, while a refundable tax credit can exceed a
taxpayer’s income tax liability, providing a cash payment primarily to low-income taxpayers who
owe little or no income tax. Over the past 20 years, legislative changes have significantly changed
the credit, transforming it from a general y nonrefundable credit available only to the middle and
upper-middle class, to a refundable credit that more low-income families are eligible to claim.
This report provides an overview of the credit under current law and also provides some summary
data on these benefits. For a complete legislative history of the credit, see CRS Report R45124,
The Child Tax Credit: Legislative History, by Margot L. Crandal -Hollick.
Current Law
The child tax credit al ows taxpayers to reduce their federal income tax liability (the income taxes
owed before tax credits are applied) by up to $2,000 per qualifying child. If the value of the credit
exceeds the amount of tax a family owes, the family may be eligible to receive a full or partial
refund of the difference. The refundable portion of the credit is sometimes referred to as the
additional child tax credit or ACTC. The total amount of their refund is calculated as 15% (the
refundability rate) of earnings that exceed $2,500 (the refundability threshold), up to the
maximum amount of the refundable portion of the credit ($1,400 per child).
The credit phases out for higher-income taxpayers. The child tax credit can offset a taxpayer’s
Alternative Minimum Tax (AMT) liability. Currently, the maximum credit per child, refundability
threshold, and phaseout thresholds are not indexed for inflation. From 2018 to 2025, the
maximum amount of the ACTC is indexed for inflation. Table 1 provides an overview of key
provisions of the child tax credit under current law and how they wil change beginning in 2026,
as scheduled under P.L. 115-97.
Table 1. Overview of Key Aspects of the Child Tax Credit Under Current Law
Parameter
2018-2025
Post 2025a
Maximum credit per child
$2,000
$1,000
Maximum refundable
portion of the credit per
$1,400
$1,000
child (ACTC)
Refundability Threshold
$2,500
$3,000
Refundability Rate
15%
15%
$200,000 unmarried taxpayersb
$75,000 unmarried taxpayers
Phaseout Threshold
$400,000 married taxpayers
$110,000 married taxpayers
(joint returns)
(joint returns)
Phaseout Rate
5%
5%
Offset AMT tax liability
YES
YES
Congressional Research Service

1

link to page 5

The Child Tax Credit: Current Law

Source: Internal Revenue Code, 26 U.S.C. §24.
Note: The refundable portion of the child tax credit is often referred to as the additional child tax credit or
ACTC.
a. Absent legislative action, many of the changes made to the child tax credit by P.L. 115-97 wil expire and the
credit parameters wil revert to pre-2018 levels.
b. The phaseout threshold for married taxpayers that file separate returns is $200,000 from 2018 -2025. Pre-
2018/post 2025, the phaseout threshold for married taxpayers that file separate returns is/wil be $55,000 .
Detailed Overview of Current Credit
Each of the key parameters of the child tax credit as in effect from 2018 through the end of 2025
is described in more detail below. The legislative changes made to the child tax credit by P.L.
115-97 have significantly expanded the child tax credit, especial y for upper-income taxpayers, as
il ustrated in Figure 1.
Figure 1 Child Tax Credit Amount by Income Level

Source: Internal Revenue Code (IRC) Section 24.
Notes: This is a stylized example assuming the taxpayer has one qualifying child. In actuality, the ACTC is
calculated based on earned income and the credit is phased down based on modified adjusted gross income
(MAGI). Married refers to married taxpayers filing joint returns. The “notch” in the graph when the credit
amount equals $1,400 (the vertical axis) occurs when the maximum ACTC amount has been reached.
Maximum Credit per Child
Eligible families can claim a child tax credit and reduce their federal income tax liability by up to
$2,000 per qualifying child.1 The maximum credit a family can receive is equal to the number of
qualifying children a taxpayer has, multiplied by $2,000. For example, a family with two
qualifying children may be eligible for a $4,000 credit. Families may receive the child tax credit
as a reduction in tax liability (the nonrefundable portion of the credit), a refundable credit (the

1 T he child tax credit can be found in Section 24 of the Intern al Revenue Code (26 U.S.C. §24).
Congressional Research Service

2

The Child Tax Credit: Current Law

amount of the credit in excess of tax liability), or a combination of both.2 The refundable portion
of the credit—the ACTC—is discussed in the subsequent section.
Beginning in 2026, the maximum amount of the credit is scheduled to revert to $1,000 per
qualifying child.
The Nonrefundable $500 Credit for
Maximum Additional Child Tax
Non-Child Tax Credit Dependents
Credit (ACTC) per Child, the
At the end of 2017, President Trump signed into law
Refundability Threshold and
P.L. 115-97,3 which made numerous changes to the
federal income tax for individuals and businesses.4 As
Refundability Rate
discussed in this report, the law made numerous
For taxpayers with little or no federal income
changes to the child tax credit. The law also created a
new temporary credit for non-child tax-credit-eligible
tax liability, they wil be eligible for little if
dependents.
any of the nonrefundable portion of the child
This credit is equal to $500 per non-child credit-eligible
tax credit. Instead, they may be eligible to
dependent. The amount is not annual y adjusted for
receive the child tax credit as a refundable
inflation. The phaseout parameters of the child credit
credit. The refundable portion of the child tax
(e.g., phaseout thresholds of $400,000 married filing
credit is often referred to as the additional
jointly, $200,000 other taxpayers, 5% phaseout rate)
apply to the family credit. As discussed below, while
child tax credit or ACTC. The amount of the
P.L. 115-97 imposes a new Social Security number
refundable child tax credit is general y
(SSN) requirement for qualifying children being claimed
calculated using the “earned income formula”5
under the child tax credit, the law does not statutorily
up to the maximum ACTC amount of $1,400
impose a similar requirement on non-child credit-
per qualifying child.
eligible dependents.

This credit is general y available for dependents not
Under the earned income formula, a taxpayer
eligible for the child tax credit. Non-child credit-eligible
may claim an ACTC equal to 15% of the
dependents excludes otherwise eligible dependents
family’s earned income in excess of $2,500,
who are not U.S. citizens and are residents of Mexico
or Canada.
up to the maximum ACTC amount (i.e., up to
This provision is scheduled to be in effect from 2018
$1,400 multiplied by the number of qualifying
through the end of 2025.
children). The $2,500 amount is referred to as
the refundability threshold; the 15% is referred
to as the refundability rate. If a taxpayer’s earnings are below the refundability threshold, they are

2 Importantly, even if the credit both reduces tax liability and then is received as a ref und, the total value of the
nonrefundable and refundable portion of the credit cannot exceed $ 2,000 per child multiplied by the number of
qualifying children. Hence, if a family with two children and a $1,500 tax liability is eligible for a $2,000 child tax
credit, $1,500 of their credit will reduce their tax liability to zero (the nonrefundable portion) and the family may
receive up to $500 of child tax credit as a refundable credit, depending on their income.
3 T he original title of the law, the T ax Cuts and Jobs Act, was stricken before final passage because it violated what is
known as the Byrd rule, a procedural rule that can be raised in the Senate when bills, like the tax bill, are considered
under the process of reconciliation. T he actual title of the law is “T o provide for reconciliation pursuant to titles II and
V of the concurrent resolution on the budget for fiscal year 2 018.” For more information on the Byrd rule, see CRS
Report RL30862, The Budget Reconciliation Process: The Senate’s “Byrd Rule”, by Bill Heniff Jr.
4 For more information on the changes made to the tax code by P.L. 115-97, see CRS Report R45092, The 2017 Tax
Revision (P.L. 115-97): Com parison to 2017 Tax Law, coordinated by Molly F. Sherlock and Donald J. Marples.
5 Families with three or more children may choose to calculate the refundable portion of the child tax credit using an
alternative formula. If the amount calculated under the alternative formula is larger than th e refundable credit
calculated under the earned income formula, the larger credit can be claimed. T he alter native formula is calculated as
the excess of a taxpayer’s payroll taxes (including one-half of any self-employment taxes) over their earned income t ax
credit (EIT C), not to exceed the maximum credit amount. However, lower-income taxpayers will often pay less in
payroll taxes than they will receive in the EIT C. T his is because payroll taxes are equal to 7.65% of earnings, while the
EIT C equals up to 45% of earnings.
Congressional Research Service

3

The Child Tax Credit: Current Law

ineligible for the ACTC. For every dollar of earnings above this amount, the value of the
taxpayer’s ACTC increases by 15 cents, up to the maximum amount of the credit ($1,400 per
qualifying child). For purposes of calculating the ACTC, earned income is defined as wages, tips,
and other compensation included in gross income. It also includes net self-employment income
(self-employment income after deduction of one-half of Social Security payroll taxes paid by a
self-employed individual).
Beginning in 2026, the refundability threshold is scheduled to increase to $3,000 and the
maximum ACTC per child (the amount that exceeds income tax liability) is scheduled to decrease
to $1,000 per child.
The Phaseout Threshold and Phaseout Rate
The child tax credit phases out for higher-income families. The $2,000-per-child value of the
credit fal s by a certain amount as a family’s income rises. Specifical y, for every $1,000 of
modified adjusted gross income (MAGI)6 above a threshold amount, the credit fal s by $50—or
effectively by 5% of MAGI above the threshold. The threshold amount depends on a taxpayer’s
filing status, and equals $200,000 for single parents and married taxpayers filing separate returns,
and $400,000 for married taxpayers filing joint returns. The actual income level at which the
credit is entirely phased out (i.e., equals zero) depends on the number of qualifying children a
taxpayer has. General y, it takes $40,000 of MAGI above the phaseout threshold to completely
phase out $2,000 of credit. For example, the credit wil completely phase out for a married couple
with two children if their MAGI exceeds $480,000.
Definition of a Qualifying Child
In order to claim the child tax credit, a taxpayer’s child must be considered “a qualifying child”
and meet several requirements, which may differ from eligibility requirements for other child-
related tax benefits:
1. The child must be under 17 years of age by the end of the year. (In other words, if
the child turns 17 years old on December 31, 2020, the taxpayer cannot claim
them as a qualifying child for the child tax credit on their 2020 income tax
return.)
2. The child must be eligible to be claimed as a dependent on the taxpayer’s return.7
Specifical y:
a. The child must be the taxpayer’s son, daughter, grandson, granddaughter,
stepson, stepdaughter, niece, nephew, or an eligible foster child of the
taxpayer.

6 With respect to the child tax credit, modified adjusted gross income (MAGI) is equal to Adjusted Gross Income (AGI)
increased by foreign earned income of U.S. Citizens abroad, including income earned in Guam, American Samoa, the
Northern Mariana Islands, and Puerto Rico. For more information on AGI see CRS Report RL30110, Federal
Individual Incom e Tax Term s: An Explanation , by Mark P. Keightley and Jeffrey M. Stupak ; and CRS Report
RL32808, Overview of the Federal Tax System , by Molly F. Sherlock and Donald J. Marples.
7 See the definition of a qualifying child for he dependent exemption in IRC 152(c). From 2018 to 2025, due to the
temporary suspension of the dependent exemption enacted as part of P.L. 115-97, taxpayers may no longer claim their
children as dependents for purposes of the dependent exemption, although this does not affect eligibility for the credit
and the definition of a dependent remains unchanged by the law. IRC Section 151(d)(5)(B).
Congressional Research Service

4

The Child Tax Credit: Current Law

b. The child must live at the same principal residence as the taxpayer for more
than half the year for which the taxpayer wishes to claim the credit.
c. The child cannot provide more than half of their own support during the tax
year.
3. The child must be a U.S. citizen or national. If they are not a U.S. citizen or
national, they must be a resident of the United States.8
The age and citizenship requirements for a qualifying child for the child tax credit differ from the
definition of qualifying child used for other tax benefits and can cause confusion among
taxpayers. For example, a taxpayer’s 18-year-old child may meet al the requirements for a
qualifying child for the EITC, but wil be too old to be eligible for the child tax credit.
ID Requirements to Claim the Child Tax Credit
The statute requires that taxpayers who intend to claim the child tax credit provide a valid
taxpayer identification number (TIN) for each qualifying child on their federal income tax return.
Under a temporary change in effect from 2018 through the end of 2025, the child’s TIN must be a
work-authorized Social Security number (SSN). The SSN must be issued before the due date of
the tax return. Failure to provide the child’s SSN may result in the taxpayer being denied the
credit (both the nonrefundable and refundable portions of the credit).
Absent any legislative changes, beginning in 2026, a valid TIN for qualifying children wil
include individual taxpayer identification numbers (ITINs) and Social Security numbers (SSNs).
ITINs are issued by the Internal Revenue Service (IRS) to noncitizens who do not have and are
not eligible to receive SSNs. ITINs are supplied solely so that noncitizens are able to comply with
federal tax law, and do not affect immigration status.
In addition, in order to claim the child tax credit in a given tax year, the taxpayer must also
provide their own taxpayer identification number that must be issued before the due date of the
tax return. This is a permanent ID requirement that is not scheduled to expire.
Disallowance of the Credit Due to Fraud or Reckless Disregard of
the Rules
A tax filer is barred from claiming the child tax credit for a period of 10 years after the IRS makes
a final determination to reduce or disal ow a tax filer’s child tax credit because that individual
made a fraudulent child tax credit claim. A tax filer is barred from claiming the child tax credit for
a period of two years after the IRS determines that the individual made a child tax credit claim
“due to reckless and intentional disregard of [the] rules” of the child tax credit, but that disregard
was not found to be due to fraud.9
Data on the Child Tax Credit
Estimates from the Internal Revenue Service (IRS) and Tax Policy Center highlight several key
aspects of the child tax credit:
 The total dollar amount of the child tax credit has grown over time: Data
from the IRS indicate that the total dollar amount of the child tax credit has

8 See IRC 24 (c)(2).
9 See IRC Section 24(g).
Congressional Research Service

5

link to page 10 The Child Tax Credit: Current Law

increased significantly since enactment. These estimates do not include the
impact of recent legislative changes made by P.L. 115-97, which, al else being
equal, wil expand the total cost of this tax benefit.
 In 2019, the majority of the tax benefit went to taxpayers with income
between $75,000 and $500,000: The Tax Policy Center (TPC) estimates that the
majority of child tax credit dollars in 2019 went to taxpayers with more than
$75,000 of income, with nearly one-third of the benefit going to taxpayers with
income between $100,000 and $200,000.10 In comparison, a relatively smal
share went to very-low-income or very-high-income taxpayers.
 In 2019, approximately 90% of taxpayers with children and income between
$30,000 and $500,000 received the child tax credit. The Tax Policy Center
(TPC) estimates that across most income groups, the vast majority of taxpayers
with children received the child tax credit in 2019. About half of the lowest-
income taxpayers received the credit and virtual y no taxpayers with children and
income over $1 mil ion received the credit.
 In 2019, taxpayers with income between $100,000 and $200,000 on average
received the largest credit. The Tax Policy Center (TPC) estimates that
taxpayers with children and income between $100,000 and $200,000 on average
received a credit of over $3,000 in 2019. Taxpayers with children with income
under $20,000 received on average a credit of less than $1,000, while the
wealthiest taxpayers with children received on average a credit of $10.
Total Child Tax Credit Dollars, 1998-2017
IRS estimates of the amount of total child tax credit dollars (inflation adjusted to 2017 dollars)
received by taxpayers indicate that this tax benefit has more than doubled in size since enactment,
from aggregate receipt of $22 bil ion in 1998 to approximately $51 bil ion in 2017, as il ustrated
in Figure 2.

10 T he T ax Policy Center measure of income used in their analysis expanded cash income (ECI) which is defined as
cash income plus (1) tax-exempt employee and employer contributions to health insurance and other fringe benefits, (2)
employer contributions to tax-preferred retirement accounts, (3) income earned within retirement accounts, and (4)
food stamps. For more information, see http://www.taxpolicycenter.org/resources/income-measure-used-distributional-
analyses-tax-policy-center.
Congressional Research Service

6

The Child Tax Credit: Current Law

Figure 2. Total Real Child Tax Credit Dollars, 1998-2017

Source: IRS Statistics of Income Table 3.3 and the Bureau of Labor Statistics CPI-U.
Note: The Joint Committee on Taxation estimates that the temporary changes to the child tax credit wil cost
$573.4 bil ion between 2018 and 2026. (This estimate does not include the budgetary impact of the SSN
requirement, which is estimated to save $29.8 bil ion over the same time period.) JCX-67-17.
A significant component in the growth of the child tax credit has been the growth in the
refundable portion of the credit, which now comprises approximately half of child tax credit
dollars received by taxpayers. (For an overview of the legislative changes that have influenced
the expansion of both the refundable and nonrefundable portions of the credit, see CRS Report
R45124, The Child Tax Credit: Legislative History, by Margot L. Crandal -Hollick.) The most
recent IRS data available are for the 2017 tax year (i.e., 2017 income tax returns filed in 2018),
and hence do not include the impact of the legislative changes made to the credit by P.L. 115-97.
As previously discussed, these legislative changes are currently scheduled to be in effect from
2018 through the end of 2025. The Joint Committee on Taxation has estimated that the
modification to the child tax credit formula wil cost an estimated $573.4 bil ion between 2018
and 2026, or on average $64 bil ion a year.11 (These estimates include the budgetary cost of the
$500 nonrefundable credit for non-child tax-credit-eligible dependents.) JCT also estimates that
the new SSN requirement wil save $29.8 bil ion between 2018 and 2026, or on average $3
bil ion per year.

11 Joint Committee on T axation, Estimated Budget Effects of the Conference Agreement for HR.1, the “Tax Cuts and
Jobs Act”, December 18, 2017, JCX-67-17.
Congressional Research Service

7

link to page 11

The Child Tax Credit: Current Law

Total Child Tax Credit Dollars by Income Level
The Tax Policy Center (TPC) estimated the distribution of aggregate child tax credit by income
level for 2019 under current law (i.e., including the changes made by P.L. 115-97).12 These
estimates include the $500 credit for non-child tax-credit-eligible dependents. TPC estimates that
nearly one-third of al child tax credit dollars (30.5%) went to taxpayers with income between
$100,000 and $200,000, as il ustrated in Figure 3. One-quarter of al child tax credit dollars
(25.0%) went to taxpayers with income under $50,000.
Lower-income taxpayers general y receive a credit of $1,400 or less per child, depending on their
earnings. In contrast, higher-income taxpayers with sufficient income tax liability receive a credit
of $2,000 per child. For example, a single parent with two children and $15,000 of income is
eligible for a $1,875 credit (received entirely as the refundable child credit or ACTC), less than
the maximum ACTC for two children of $2,800 (2x $1,400) and less than the maximum credit for
two children of $4,000 (2 x $2,000). The highest-income taxpayers do not receive a credit due to
the credit phaseout.
Figure 3. Estimated Share of Total Child Tax Credit Dollars by Income Level, 2019

Source: Tax Policy Center Model T20-0091.
Notes: Income is defined as expanded cash income (ECI), which equals cash income plus certain other tax-
exempt forms of income and benefits like food stamps. These estimates include the $500 credit for non -child-tax
credit eligible dependents.

12 For the purposes of these estimates that T ax Policy Center uses a broad measure of pretax income called “expanded
cash income” or ECI. ECI equals cash income plus (1) tax-exempt employee and employer contributions to health
insurance and other fringe benefits, (2) employer contributions to tax-preferred retirement accounts, (3) income earned
within retirement accounts, and (4) food stamps. According to T PC, “[t]he primary motivation for adopting this broader
income measure was to characterize differences in th e economic status of individual taxpayers more completely and
accurately.” For more information, see http://www.taxpolicycenter.org/resources/income-measure-used-distributional-
analyses-tax-policy-center.
Congressional Research Service

8

link to page 13 The Child Tax Credit: Current Law

Share of Taxpayers with Children Receiving the Child Tax Credit
TPC estimated the share of taxpayers with children and al taxpayers that received the child tax
credit in 2019. The estimates indicate that among taxpayers with children, almost al taxpayers
received the child tax credit. More than 90% of taxpayers with children and income between
$40,000 and $500,000 received the child tax credit. In contrast, less than half (47.8%) of
taxpayers with children and income under $10,000 received the child tax credit in 2019, and
about one-third (38.6%) of taxpayers with children and income between $500,000 and $1 mil ion
received the credit, as il ustrated in Figure 4.
Fewer low-income families with children benefit from the child tax credit since taxpayers with
income under $2,500 (the refundability threshold) are not eligible for the refundable portion of
the credit. In contrast, due to the phaseout of the credit at higher income levels, virtual y no
taxpayers with children and income over $1 mil ion are currently eligible to claim it.
Congressional Research Service

9

The Child Tax Credit: Current Law

Figure 4. Estimated Share of Taxpayers with Children and All Taxpayers
Receiving the Child Tax Credit by Income Level, 2019

Source: Tax Policy Center Model T20-0091.
Notes: Income is defined as expanded cash income (ECI), which equals cash income plus certain other tax-
exempt forms of income and benefits like food stamps. These estimates include the $500 credit for non-child-tax
credit eligible dependents. Taxpayers with children are those claiming an exemption for children at home or
away from home or with children qualifying for the child tax credit or earned income tax credit (EITC).
Average Child Tax Credit Amount
TPC estimated the average child tax credit amount by income level for taxpayers with children
and al taxpayers in 2019. Their estimates indicate that taxpayers with children and income
between $100,000 and $200,000 received the largest credit on average—an estimated $3,040.
Taxpayers with children and income under $20,000 received on average a credit of less than
Congressional Research Service

10

The Child Tax Credit: Current Law

$1,000, while the wealthiest taxpayers with children (income over $1 million) on average
received a credit of $10.
Lower-income taxpayers are eligible to receive a credit of up to $1,400 per child, although they
may receive less depending on their earned income. In contrast, higher-income taxpayers, with
sufficient income tax liability, are eligible for up to a $2,000 credit per child. The highest-income
taxpayers are ineligible for the credit due to the phaseout.
Figure 5. Estimated Average Child Tax Credit Amount by Income Level
for Taxpayers with Children and All Taxpayers, 2019

Source: Tax Policy Center Model T20-0091.
Notes: Income is defined as expanded cash income (ECI), which equals cash income plus certain other tax-
exempt forms of income and benefits like food stamps. These estimates include the $500 credit for non -child-tax
credit eligible dependents. Taxpayers with children are those claiming an exemption for children at home or
away from home or with children qualifying for the child tax credit or earned income tax credit (EITC).
Congressional Research Service

11

The Child Tax Credit: Current Law

Author Information

Margot L. Crandall-Hollick

Acting Section Research Manager

Acknowledgments
This report was updated in June 2020 with the assistance of Joseph Hughes, research assistant .

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.

Congressional Research Service
R41873 · VERSION 22 · UPDATED
12