The Child Tax Credit is worth up to $2,000 for each dependent child under the age of 17 at the end of the tax year. Qualified children aged 5 and under count for $3,600. Here are some important facts about the Child Tax Credit: The Child Tax Credit is intended to offset the many expenses of raising children. The expanded child tax credit raises the 2020 limits from up to $2,000 per child to a maximum of $3,600 -- but the math gets complicated fast. Child Tax Credit. To take the Child Tax Credit for the 2020 tax year, the child has to be 16 or younger on December 31, 2020. There are some qualifying rules, and income matters. Income floors and caps apply. Prior to 2018, the Child Tax Credit was a $1,000 nonrefundable credit. The Child Tax Credit can be worth as much as $2,000 per child for Tax Years 2018-2025. This is a tax credit, which means it reduces your tax bill dollar-for-dollar, which makes it … The Child Tax Credit phases out for high-income taxpayers. The 2020 Child Tax Credit Amount. How has the Child Tax Credit changed? Thanks to a change in tax legislation in 2018, the credit doubled to $2,000 and the modified adjusted gross income (MAGI) limits increased. The Child Tax Credit is a federal credit only, so you can’t claim it on your state tax return. This is up from the prior $1,000 amounts. The child tax credit for 2020, 2021, allows you to get back up to $2000 per child in taxes. To qualify for the credit, your dependent must have lived with you for more than half the year, and you must have at least $2,500 of earned income. Qualified children age 5 and under count for $3,600. More than 48 million households are expected to claim the Child Tax Credit for 2020, according to the Joint Committee on Taxation of Congress. With tax reform, the Child Tax Credit was increased to $2,000 per qualifying child and will be refundable up to $1,400, subject to income phaseouts. https://www.cnbc.com/select/child-tax-credit-what-it-means-for-your-taxes The Child Tax Credit is worth as much as $2,000 for the 2020 tax year, and up to $1,400 of that can be refundable. The 2020 and 2021 Child Tax Credit can reduce tax liability by $2,000 per child, amounting to a cash refund of $1,400 each. The revised child tax credit raises the 2020 limits from up to $2,000 per child to a maximum of $3,600 -- but the math gets complicated fast. And previously, the Child Tax Credit was only refundable if you filed for the “Additional Child Tax Credit”.