The Child Tax Credit phases out gradually above an income threshold rather than disappearing all at once.
How it works
The maximum credit is the number of qualifying children times the per-child credit amount. Above the phase-out threshold, that maximum is reduced by $50 for every $1,000 (or part of $1,000) of AGI over the threshold.
What this does not include
Part of the credit is refundable as the Additional Child Tax Credit, subject to its own separate calculation and cap — this calculator computes the credit itself, not how much of it is refundable if it exceeds tax owed.
How to use this calculator
- Enter the number of qualifying children and the current per-child credit amount.
- Enter your AGI and the phase-out threshold for your filing status.
A worked example
2 children, $2,200 credit per child, AGI $100,000 (below the $400,000 phase-out threshold): max credit = $4,400, reduction = $0, final credit = $4,400.
Same 2 children, AGI $410,000 (above the threshold): reduction = $500, final credit = $3,900 — the credit phases out as income rises past the threshold.
What the variables mean
| Variable | Meaning |
|---|---|
| Children | Number of qualifying children |
| Per-child credit | Credit amount per qualifying child |
| AGI | Adjusted gross income |
| Phase-out threshold | Income level above which the credit starts reducing |
Edge cases worth knowing
The credit only starts reducing once income crosses the threshold — it isn’t reduced from dollar one. Income right at or below the threshold gets the full credit with zero reduction.
Zero qualifying children makes the credit meaningless, so the calculator declines to show a result for that input.
Frequently asked questions
Does the credit disappear entirely above the threshold?
Not immediately — it phases out gradually at $50 per $1,000 over the threshold, so a modest excess only trims the credit slightly.
What counts as a qualifying child?
Generally a dependent child under 17 at year-end who meets residency, relationship, and support tests — this calculator takes the count as an input rather than determining eligibility itself.
Is the credit the same for every child?
The per-child amount entered applies uniformly here — real filings can involve additional rules if a child doesn’t have a qualifying Social Security number.
