< DICTIONARY

Child Tax Credit

A tax benefit for families that reduces their income tax for each child they have and has the potential to pay out a lump sum amount if the total tax owed is less than the full credit amount.

The credit provides up to $2,000 in benefits per child per year ($1,400 that is available as a payout) until the year 2025 and has been temporarily increased for the year of 2021 to $3,600 for children under the age of 6 and $3,000 for kids ages 6 to 17.

The child tax credit is available through the yearly tax return filing to parents and guardians who have a dependent child under the age of 17 and meet the minimum income and maximum income thresholds.

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