The 2023 child tax credit was $2,000 per child under age 17

For the 2023 tax year, the Child Tax Credit was $2,000 for each may have access to child under age 17 at the end of the year. This amount has been in place since 2018 and did not change for 2023. The credit reduces your federal income tax dollar-for-dollar, making it one of the largest tax breaks available to families with children.

The credit phases out if your income exceeds certain thresholds. For married couples filing jointly, the phase-out began at $400,000 of modified adjusted gross income. For single filers and heads of household, it began at $200,000. For each $1,000 (or fraction thereof) over the threshold, the credit decreased by $50.

You claim the credit on your tax return using Form 1040 and Schedule 8812. The IRS uses the Social Security number you provide for each child to verify they are a U.S. citizen, national, or resident alien, and that you have not claimed them for another taxpayer.

Key Takeaways

  • The 2023 Child Tax Credit was $2,000 per may have access to child under age 17, with no changes from prior years.
  • The credit phases out for higher earners: starting at $400,000 for married couples filing jointly and $200,000 for single filers.
  • You must provide each child's Social Security number on your return, and the child must be a U.S. citizen, national, or resident alien.
  • Part of the credit may be refundable (the Additional Child Tax Credit), meaning you could receive money back even if you owe no tax.

Income limits and phase-out rules for 2023

The phase-out thresholds for 2023 were fixed amounts that did not adjust for inflation. If your modified adjusted gross income (MAGI) was $400,000 or more (married filing jointly) or $200,000 or more (single or head of household), your credit began to reduce.

The reduction worked in $50 increments. For every $1,000 of income over the threshold—or any part of $1,000—the credit dropped by $50. This meant that at very high incomes, the credit could be reduced to zero. For example, a married couple with MAGI of $440,000 would lose $2,000 of the credit (four increments of $50), leaving them with $0 credit if they had one child.

may have access to widow(er) status used the $400,000 threshold for married filing jointly. If you were married but filed separately, the threshold was $200,000 for each spouse.

Who counts as a may have access to child

A may have access to child had to meet five tests: relationship, age, citizenship, residency, and support. The child had to be your son, daughter, stepchild, foster child, sibling, or descendant of any of these (such as a grandchild or niece). They had to be under age 17 at the end of 2023.

The child had to be a U.S. citizen, national, or resident alien for the entire year. They had to live with you for more than half the year (with limited exceptions for temporary absences like school or medical care). You also had to provide more than half their financial support for the year.

If your child turned 17 on December 31, 2023, they did not count as a may have access to child for that year. If they turned 17 on January 1, 2024, they did count for 2023.

The refundable portion: Additional Child Tax Credit

Part of the Child Tax Credit could be refundable, meaning you could receive it as a refund even if you owed no federal income tax. This refundable portion was called the Additional Child Tax Credit and was limited to $1,600 per child for 2023.

To claim the refundable portion, you had to have earned income (wages, self-employment income, or certain other income) of at least $2,500. The refundable credit was 15 percent of earned income over $2,500, up to the $1,600 limit per child. You claimed it on Schedule 8812, which was attached to Form 1040.

This meant that a family with very low income could still receive part of the credit as a refund. For example, a single parent with $20,000 in earned income and two may have access to children could claim the full $1,600 refundable credit per child, even if their tax liability was zero.

How the credit changed after 2021

The Child Tax Credit was temporarily expanded during 2021. For that year only, the credit was $3,600 per child under age 6 and $3,000 per child ages 6 to 16. The refundable portion was also increased to $3,600 and $3,000 respectively. Part of the credit was paid in advance monthly payments from July through December 2021.

The expansion ended after 2021. Starting with the 2022 tax year, the credit returned to $2,000 per child under age 17, where it remained for 2023. The refundable portion also returned to $1,600. No advance payments were made in 2022 or 2023.

This change meant that families with children saw their tax benefit decrease significantly compared to 2021. Understanding this shift is important if you are comparing your 2023 tax situation to prior years.

Claiming the credit on your 2023 return

You reported the Child Tax Credit on Form 1040, U.S. Individual Income Tax Return. You listed each may have access to child's name and Social Security number on the form. The IRS matched this information to verify the child's identity and may support they were not claimed by another taxpayer.

If you had more than four may have access to children, you also filed Schedule 8812, Additional Child Tax Credit. This form was required to claim the refundable portion of the credit or if you had more than four children.

You could not claim the credit for yourself, your spouse, or anyone who was not a U.S. citizen, national, or resident alien. If your child had an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number, they did not count as a may have access to child for this credit.

What happens if you claimed a child incorrectly

If you claimed the credit for a child who did not meet the requirements, the IRS would disallow the credit and send you a notice. You would owe back taxes, plus interest. If the error was intentional, you could face penalties of 20 percent or more of the underpaid tax.

Common mistakes included claiming a child who was age 17 or older, claiming a child who was not a U.S. citizen or resident alien, or claiming the same child on two returns (for example, if both parents filed separately). If you and another taxpayer both claimed the same child, the IRS would typically allow the claim only for the taxpayer with the higher adjusted gross income.

If you received an IRS notice about the credit, you had the right to respond and provide documentation. Keep records of your child's birth certificate, Social Security card, and proof of residency (such as school records or lease agreements) in case the IRS asks for verification.

Frequently Asked Questions

Can I claim the Child Tax Credit if my child has an ITIN instead of a Social Security number?

No. For 2023, the child had to have a valid Social Security number to count as a may have access to child for the credit. An ITIN (Individual Taxpayer Identification Number) did not satisfy this requirement. This rule applied even if the child was a U.S. citizen or resident alien.

What if my child was born on December 31, 2023?

Your child counted as a may have access to child for 2023 if they were born on or before December 31, 2023. Age was determined as of the last day of the tax year. A child born on December 31, 2023, was age 0 on that date and may have access to for the credit.

Do I lose the entire credit if my income is over the phase-out threshold?

Not necessarily. The credit phases out gradually in $50 increments for each $1,000 of income over the threshold. You would lose the entire credit only if your income was high enough that the phase-out reduced it to zero. For a single filer with one child, this would occur at approximately $212,500 of MAGI.

Can I claim the credit if my child lived with me for only part of the year?

Your child had to live with you for more than half the year. Temporary absences for school, medical care, military service, or vacation counted as time living with you. If your child lived with you for six months or less, they did not count as a may have access to child.

What if I received an advance payment of the credit in 2021 but did not claim the full credit on my 2021 return?

The IRS reconciled advance payments when you filed your 2021 return. If you received more in advance payments than the credit you were may have access to to claim, you had to repay the difference. If you received less, you could claim the remaining credit on your return. This reconciliation happened only for 2021; no advance payments were made in 2022 or 2023.