How the 2023 Child Tax Credit Works and Who Can Claim It

The 2023 Child Tax Credit gives you up to $2,000 per child under 17, claimed on your tax return

The Child Tax Credit is a dollar-for-dollar reduction in the federal income tax you owe, not a deduction. This matters: a $2,000 credit cuts your tax bill by $2,000, whereas a $2,000 deduction only reduces your taxable income. For 2023 tax returns (filed in 2024), the credit is $2,000 per may have access to child under age 17 at the end of the year.

You claim this credit on Form 1040 when you file your return. The credit phases out if your income exceeds certain thresholds — $400,000 for married couples filing jointly, $200,000 for single filers. For every $1,000 (or fraction thereof) over the threshold, the credit reduces by $50.

The credit is partially refundable, meaning if the credit exceeds your tax liability, you may receive the difference as a refund. The refundable portion — called the Additional Child Tax Credit — is limited to $1,700 per child for 2023, though this amount changes yearly.

Key Takeaways

The 2023 Child Tax Credit is $2,000 per child under 17, and you claim it on your Form 1040 when filing your tax return.
Your income must be below $400,000 (married filing jointly) or $200,000 (single) to claim the full credit; the credit shrinks by $50 for each $1,000 over the limit.
The child must be your dependent, have a valid Social Security number, and be under 17 at the end of 2023 to count toward the credit.
If the credit is larger than your tax bill, you may receive the excess as a refund, up to $1,700 per child for 2023.

Who counts as a may have access to child

A child must meet four conditions to be a may have access to child for the 2023 credit. First, they must be your dependent — you claim them on your return and meet the IRS definition of a dependent (usually your biological child, stepchild, adopted child, or may be able to access foster child). Second, they must be under 17 years old at the end of 2023. A child who turns 17 on December 31, 2023 does not count; a child who turns 17 on January 1, 2024 does.

Third, the child must have a valid Social Security number (not an ITIN). Fourth, the child must have lived with you for more than half of 2023. Temporary absences for school, medical care, or military service do not break this requirement.

If you and another person both claim the same child, only one of you can claim the credit. If you cannot agree, the IRS has tiebreaker rules based on who has custody, income, and length of residence. These rules are complex; if you share custody, check IRS Publication 17 or speak with a tax professional.

How the income phase-out works

Your Modified Adjusted Gross Income (MAGI) determines whether you receive the full credit or a reduced amount. For 2023, if you are married filing jointly and your MAGI is $400,000 or less, you claim the full $2,000 per child. If your MAGI is $400,001 to $440,000, the credit reduces. If your MAGI exceeds $440,000, the credit may be zero.

The reduction works in $50 increments. For every $1,000 of income over the threshold (or any part of $1,000), the credit drops by $50. For example, if you are married filing jointly with MAGI of $401,000, you are $1,000 over the $400,000 threshold, so your credit reduces by $50 per child. If your MAGI is $401,500, you are still treated as $2,000 over the threshold (the IRS rounds up), so the credit reduces by $100 per child.

For single filers, the threshold is $200,000. For heads of household, it is $200,000. For married filing separately, it is $200,000. These thresholds do not change year to year; Congress sets them and updates them only when it passes new legislation.

The refundable portion and how to claim it

If your tax liability is less than $2,000 per child, the credit does not disappear entirely. The Additional Child Tax Credit allows you to claim the excess as a refund, up to a limit. For 2023, the refundable portion is capped at $1,700 per child, though this limit is indexed for inflation and changes annually.

To claim the refundable portion, you file Form 1040 with Schedule 8812 (Credits for may have access to Children and Other Dependents). The IRS calculates how much of your credit is refundable based on your earned income and tax liability. You do not choose this amount; the IRS determines it using a formula.

Example: You have one child and owe $1,200 in federal income tax. Your full credit is $2,000. The $800 difference ($2,000 minus $1,200) may be refunded to you, but only if your earned income and other factors make you may be able to access for the refundable portion. The IRS will determine this when processing your return.

How the credit differs from the 2021 expansion

In 2021 and 2022, Congress temporarily expanded the Child Tax Credit. The credit rose to $3,000 per child ages 6 to 16, and $3,600 per child under 6. The income phase-out threshold increased to $400,000 for all filers. The refundable portion increased to $1,600 per child. Families also received advance payments of the credit in monthly installments.

These changes expired at the end of 2022. For 2023 and beyond, the credit reverted to $2,000 per child under 17, the original phase-out thresholds, and the $1,700 refundable limit. No advance payments are made. If you filed a 2022 return and received advance payments, you may have had to reconcile them on your 2022 return; this does not affect your 2023 credit.

How to claim the credit on your tax return

You claim the Child Tax Credit on Form 1040, the main federal income tax form. On the form, you list each may have access to child's name and Social Security number. The IRS matches this information against Social Security Administration records to verify the child exists and the number is valid.

If you are claiming the refundable portion (the Additional Child Tax Credit), you also file Schedule 8812. This schedule calculates how much of your $2,000 credit can be refunded to you based on your earned income and tax liability. You do not fill in a dollar amount; the schedule does the math.

If you use tax software, it will ask you questions about each child and automatically populate the forms. If you file by hand, you will need the child's full name, date of birth, and Social Security number. If the Social Security number is incorrect or does not match IRS records, the IRS will reject the credit and send you a notice.

What happens if the IRS rejects your claim

The IRS may reject your Child Tax Credit claim if the Social Security number does not match, the child does not meet the age requirement, or you cannot prove the child lived with you for more than half the year. When this happens, the IRS sends you a notice (usually CP11) explaining the reason and asking for more information.

You have the right to respond to this notice. If you believe the IRS made an error, you can provide documentation — a birth certificate, school records, or a lease showing the child's residence — to support your claim. If you do not respond or the IRS upholds its decision, you lose the credit for that year, though you may be able to claim it in a future year if the issue is resolved.

If you intentionally claim a child who does not meet the requirements, the IRS may impose penalties and interest on the unpaid tax. This is treated as tax fraud, not a straightforward mistake.

Frequently Asked Questions

Can I claim the credit if my child was born on December 31, 2023?

Yes. The child must be under 17 at the end of 2023, which means they can be any age from newborn to 16. A child born on December 31, 2023 is under 17 at the end of that day and counts for the full $2,000 credit.

What if my child has an ITIN instead of a Social Security number?

The Child Tax Credit requires a valid Social Security number, not an ITIN. If your child has an ITIN, you cannot claim this credit. However, you may be able to claim the Credit for Other Dependents, which is $500 per dependent and does not require a Social Security number.

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

Not entirely. The credit reduces by $50 for every $1,000 of income over the threshold, but it does not disappear completely until your income is very high. For example, if you are married filing jointly with $420,000 in MAGI, you are $20,000 over the $400,000 threshold, so your credit reduces by $1,000 per child (20 × $50). You would still have $1,000 per child remaining.

Can I claim the credit if my child is in college?

Yes, as long as the child is under 17 at the end of 2023. Age is the only requirement related to schooling. A child in college who is 17 or older does not count, but a 16-year-old in college does.

What if I claimed the wrong child by mistake?

Contact the IRS and file an amended return (Form 1040-X) for the year in question. Explain the error and provide the correct child's information. The IRS will recalculate your tax and either send you a refund or a bill for additional tax owed, depending on the change.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.