9 — Phaseout Reduction Amount Updated for tax year 2025

What this line means

The amount your child tax credit is reduced due to income above the threshold. You multiply the excess from line 8 by 5% (0.05). For every $1,000 of income above the threshold, your combined child tax credit and credit for other dependents decreases by $50. This reduction applies to both the CTC and the credit for other dependents together.

Does this apply to you?

• Your modified AGI exceeds $200,000 (or $400,000 if married filing jointly)
• You need to calculate how much your credit is reduced before comparing to your tax liability

Easy to overlook

The phaseout reduces both the CTC and the credit for other dependents The 5% reduction applies to the combined total of both credits, not just the child tax credit. If you have both qualifying children and other dependents, the phaseout eats into both credits together. Filers sometimes think only the CTC is subject to phaseout and claim the full $500 credit for other dependents separately. ¹ [SOURCE: IRC Section 24(b) — 5% phaseout rate]

The credit does not cliff — it gradually phases out Unlike some tax benefits that disappear entirely above a threshold, the child tax credit reduces by $50 per $1,000 of excess income. A single filer with one child earning $220,000 loses $1,000 of the credit ($20,000 excess times 5%), leaving $1,200. The credit only reaches zero at $244,000 for one child. ² [SOURCE: IRS Schedule 8812 instructions — phaseout reduction calculation]

Watch out for this

Applying the phaseout to each credit separately instead of to the combined total. The phaseout on line 9 is subtracted from the combined credits on line 13 (CTC plus credit for other dependents). It is not applied twice — once to the CTC and once to the other dependents credit.

Related lines on your return

• Line 8 — Schedule 8812 — Excess AGI over threshold; multiplied by 5% to get this line
• Line 10 — Schedule 8812 — Credit after phaseout; line 6 minus this reduction (but not below zero)
• Line 13 — Schedule 8812 — Total credits before limit; includes both CTC and other dependents credit