Definition
The Child Tax Credit is a per-child credit for taxpayers with qualifying dependent children.
How It Works
The credit reduces tax owed for each qualifying child under a set age, with a portion potentially refundable. It phases out above income thresholds.
Example
A family with two qualifying children claims the credit, reducing their tax bill, if their income is below the phase-out range.
Who It Applies To
Parents and guardians of qualifying children.
Watch-Outs
The credit phases out at higher income, so many high earners receive a reduced credit or none.
