The 2023 Child Tax Credit is $2,000 per child under age 17

For the 2023 tax year, the Child Tax Credit is $2,000 for each child you claim who was under age 17 on December 31, 2023. This is the same amount it has been since 2018. The credit reduces the federal income tax you owe dollar-for-dollar, which means a $2,000 credit cuts your tax bill by $2,000.

The credit begins to phase out — meaning it gets smaller — if your modified adjusted gross income (MAGI) exceeds certain thresholds. For 2023, those thresholds are $400,000 for married couples filing jointly and $200,000 for single filers, head of household filers, and married couples filing separately. For every $1,000 (or fraction thereof) over the threshold, the credit reduces by $50.

You report the Child Tax Credit on Form 1040 (your main tax return form) using Schedule 8812 if you need to calculate the refundable portion. Most filers enter it directly on Form 1040 itself if they are only claiming the non-refundable credit.

Key Takeaways

  • The 2023 Child Tax Credit is $2,000 per may have access to child under age 17 as of December 31, 2023.
  • The credit phases out starting at $400,000 MAGI for married joint filers and $200,000 for single filers, reducing by $50 for each $1,000 over the limit.
  • Up to $1,700 of the credit may be refundable in 2023, meaning you can receive money back even if you owe no tax.
  • You must have a valid Social Security number for each child to claim the credit, and the child must be a U.S. citizen, national, or resident alien.

Who qualifies as a child for the 2023 credit

A child must meet five tests to count toward your Child Tax Credit. First, the child must be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these (such as a grandchild or niece). Second, the child must be under age 17 at the end of 2023 — meaning they turned 17 on or before December 31, 2023. Third, the child must have lived with you for more than half of 2023. Fourth, you must provide more than half the child's financial support for the year. Fifth, the child must be a U.S. citizen, national, or resident alien with a valid Social Security number.

Foster children and adopted children count as long as the legal relationship is in place. A child does not have to be a biological child. If you adopted a child during 2023, the child counts for the full year as long as the adoption was finalized by December 31, 2023.

How the refundable portion works

Part of the Child Tax Credit is refundable, which means you can receive it as a refund even if you owe no federal income tax. For 2023, up to $1,700 per child is refundable. The remaining $300 per child is non-refundable, meaning it can only reduce your tax bill to zero but cannot generate a refund.

The refundable portion is called the Additional Child Tax Credit or ACTC. You calculate it on Schedule 8812 and report it on Form 1040. The IRS uses a formula that compares 15% of your earned income over $2,500 to the amount of non-refundable credit you cannot use. Whichever is smaller becomes your refundable credit, up to the $1,700 limit per child.

If you have very low income or no income, you may still receive a refund through the ACTC. For example, if you earned $10,000 and have one may have access to child, you would calculate 15% of ($10,000 − $2,500) = $1,125. If your non-refundable credit is larger than $1,125, you would receive $1,125 as a refund (assuming no other credits reduce it).

Income limits and how the credit phases out

The Child Tax Credit does not disappear entirely when you exceed the income threshold — it reduces gradually. For 2023, if you are married filing jointly and your MAGI is $400,000 or less, you receive the full $2,000 per child. If your MAGI is $400,001 to $401,000, the credit reduces by $50 per child. If your MAGI is $401,001 to $402,000, it reduces by $100 per child. The pattern continues: for every $1,000 over the threshold (or any part of $1,000), subtract $50 from the credit.

For single filers, head of household filers, and married filing separately filers, the threshold is $200,000. The same $50-per-$1,000 reduction applies.

MAGI for this credit is usually your adjusted gross income (AGI) from Form 1040, line 11. Some taxpayers with foreign income or certain other situations use a different MAGI calculation, but most people use their AGI.

What documents and information you need to claim the credit

Gather the following before you file: the child's full legal name exactly as it appears on their Social Security card, the child's Social Security number, the child's date of birth, and proof of your relationship (birth certificate, adoption papers, or court order for foster or stepchildren). You do not send these documents with your return, but you must have them available if the IRS asks.

You also need to know how many months the child lived with you during 2023. If the child was born or died during the year, count only the months after birth or before death. Keep records showing the child's residence — a lease, mortgage statement, or utility bill in your name at the address where the child lived.

For the refundable portion, gather your W-2 forms, 1099 forms, or other income documents so you can calculate earned income accurately. Self-employed income counts as earned income, but investment income, Social Security, and unemployment do not.

How to report the credit on your 2023 tax return

On Form 1040, you list each may have access to child's name and Social Security number in the section labeled "Dependents." The form itself has a line for the Child Tax Credit. If all your credit is non-refundable (meaning your tax bill is large enough to use the full $2,000 per child), you enter the total on Form 1040, line 24.

If you may have a refundable portion, you must complete Schedule 8812 (Credits for may have access to Children and Other Dependents). This schedule calculates how much of your credit is refundable. You then transfer the refundable amount to Form 1040, line 33c, and the non-refundable amount to Form 1040, line 24.

If you use tax software, the program walks you through questions about each child and calculates the credit automatically. If you file by hand, follow the instructions on Schedule 8812 carefully, as the calculation involves multiple steps and is straightforward to make errors on.

Changes from 2022 and what to watch for in future years

The Child Tax Credit amount ($2,000 per child) and the income thresholds ($400,000 for married joint filers, $200,000 for others) have remained the same since 2018. The refundable portion was $1,700 in 2023, the same as 2022. These amounts are set by law and do not adjust for inflation each year the way some other tax amounts do.

In 2021 and 2022, the credit was temporarily expanded to $3,000 or $3,600 per child and was partially paid in advance during the year. That expansion ended after 2022, and the credit returned to $2,000 for 2023. Congress would need to pass new legislation to change the credit amount or income thresholds again.

Frequently Asked Questions

Can I claim the Child Tax Credit for a child who does not have a Social Security number?

No. The child must have a valid Social Security number issued by the Social Security Administration. If your child was born in 2023 and does not yet have a number, you can request one from the hospital or explore through the Social Security Administration website. You can still file your return and claim the credit once the number is issued, even if it is after the normal filing important date.

What if my child turned 17 during 2023?

If your child turned 17 on or before December 31, 2023, they do not count for the 2023 credit. The credit is only for children under age 17 at the end of the tax year. However, if your child turns 17 on January 1, 2024 or later, they count for the 2023 tax year.

Do I lose the entire credit if my income is slightly over the threshold?

No. The credit phases out gradually, not all at once. If you are $1,000 over the threshold, you lose $50 per child. You would need to be significantly over the threshold to lose the entire credit. For example, a married couple with one child would need MAGI of approximately $420,000 to lose the full $2,000 credit.

Can I claim the credit for a child who lived with me only part of the year?

The child must have lived with you for more than half of 2023. If your child was born during the year, count only the months after birth. If your child moved out partway through the year, add up the months they were present. If it is more than six months, the child counts. If it is six months or fewer, the child does not.

What if I claimed a child as a dependent but the child also filed their own tax return?

Only one person can claim a child as a dependent. If you claim the child on your return, the child cannot claim themselves as a dependent on their own return. If the child files a return and claims themselves, you cannot also claim them. The IRS will catch this and disallow one of the claims, usually resulting in a notice and a need to amend one of the returns.