What is the amount of the Child Tax Credit per qualifying child?

The Child Tax Credit provides financial assistance to families with qualifying children, and the current maximum amount of the credit is $2,000 per qualifying child, not $1,000. This credit is designed to help reduce the tax burden on families and support child-rearing costs.

To qualify for the full $2,000 credit, the child must meet specific criteria, including age, relationship to the taxpayer, financial support, and residency requirements. The credit is also phased out at certain income levels, which is essential for clients to understand when filing their taxes.

Recognizing the correct amount of the Child Tax Credit is crucial for both taxpayers and tax professionals, as it affects how the credit influences a family's overall tax liability. Understanding this credit can also aid in tax planning and maximizing potential refunds or reducing taxes owed.