The Child Tax Credit did not pass as a permanent program for 2023

The expanded Child Tax Credit that existed in 2021 and 2022 ended on December 31, 2022. Congress did not extend it, so the credit that returned for the 2023 tax year was the version that existed before the expansion — $2,000 per child under age 17, with income limits that phase out the credit for higher earners.

The expanded version had been $3,600 per child under age 6 and $3,000 per child ages 6 to 16, with higher income limits and the ability to receive payments monthly instead of only when you filed your taxes. That version is gone. If you received monthly payments in 2021 or 2022, those stopped in January 2023.

What you claim on your 2023 tax return depends on your income, the number of children you have, and whether you received advance payments. The rules for calculating what you owe or what refund you receive changed compared to 2022.

Key Takeaways

  • The Child Tax Credit for 2023 returned to $2,000 per child under 17, down from the expanded $3,000 to $3,600 available in 2021 and 2022.
  • Monthly advance payments that ran from July 2021 through December 2022 are no longer available.
  • The 2023 credit phases out at lower income thresholds than the expanded version did, meaning some households no longer receive the full amount.
  • You claim the 2023 Child Tax Credit on your 2023 tax return filed in 2024, and the IRS will reconcile any advance payments you received in prior years.

How the 2023 credit differs from 2021 and 2022

The expanded Child Tax Credit that Congress passed in March 2021 as part of the American Rescue Plan made three major changes: it raised the amount per child, it extended it to more families by raising income limits, and it allowed the IRS to send half the credit as monthly payments starting in July 2021.

For tax year 2023, none of those expansions are in place. The credit is $2,000 per may have access to child under age 17. The income thresholds where the credit begins to phase out are $400,000 for married couples filing jointly and $200,000 for single filers and heads of household — the same thresholds that were in effect before 2021. Families earning above those amounts receive a reduced credit or none at all.

You cannot receive the credit as monthly payments in 2023. You claim it only when you file your tax return for the year, and you receive it as part of your refund or as a reduction in the taxes you owe.

What happened to the monthly payments

The IRS distributed advance Child Tax Credit payments from July 2021 through December 2022. These were monthly payments of $250 to $300 per child, depending on the child's age, sent directly to families who met income requirements.

Those payments ended in December 2022. The IRS did not extend the program into 2023, and Congress did not pass legislation to continue it. If you received advance payments in 2021 or 2022, you may owe money back when you file your 2021 or 2022 tax return if your income was higher than you reported when you enrolled, or if you had fewer may have access to children than you claimed.

The IRS sent letters to families who received advance payments, explaining that they should check their income and the number of children they claimed. You can update your information through the IRS's Child Tax Credit Update Portal if you need to correct what you reported.

Income limits and phase-out rules for 2023

The 2023 Child Tax Credit begins to phase out — meaning the amount you receive starts to shrink — once your income exceeds $400,000 if you are married filing jointly, $200,000 if you are single or head of household, or $200,000 if you are married filing separately.

For every $1,000 of income above those thresholds, the credit reduces by $50. This means that if you earn significantly above the threshold, you may receive a partial credit or no credit at all. The exact amount depends on how much your income exceeds the limit and how many children you have.

Your filing status matters. If you are married but file separately, each spouse has a $200,000 threshold. If you are head of household — usually because you are unmarried and pay more than half the household expenses — your threshold is $200,000, the same as single filers.

How to claim the credit on your 2023 tax return

You claim the Child Tax Credit on Schedule 8812 (Credits for may have access to Children and Other Dependents) when you file your 2023 tax return. You will need the Social Security number of each child you are claiming, proof that they lived with you for more than half the year, and documentation of your income.

If you received advance payments in 2021 or 2022, you must report those payments on your 2023 return. The IRS will send you a letter (Form 6419) showing the total amount of advance payments you received. You report this amount on your return, and the IRS reconciles it against the credit you are may have access to to claim based on your actual 2023 income and the number of children you have.

If you received more in advance payments than you were may have access to to, you may owe the difference when you file. If you received less, you may receive the additional amount as part of your refund. This reconciliation happens automatically when you file, but you need to have the Form 6419 and your records ready.

Who qualifies as a dependent child for the 2023 credit

To claim a child for the 2023 Child Tax Credit, the child must be under age 17 at the end of 2023, have a valid Social Security number, be a U.S. citizen, national, or resident alien, and have lived with you for more than half the year.

The child must also be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these (such as a grandchild or niece). You must be the child's parent, stepparent, or legal guardian, or in some cases a relative who cares for the child.

Only one person can claim each child for the credit. If parents are divorced or separated, the parent with custody for the majority of the year typically claims the credit, unless they sign a form allowing the other parent to claim it.

Frequently Asked Questions

Will Congress pass an expanded Child Tax Credit again?

Congress has not passed legislation to restore the expanded credit for 2023 or beyond. Proposals to extend or expand the credit have been introduced in Congress, but none have become law. The credit remains at $2,000 per child unless Congress acts.

Do I have to pay back the advance payments I received?

You may have to pay back part or all of the advance payments if your 2021 or 2022 income was higher than what you reported when you enrolled, or if you claimed more children than you actually had. The IRS reconciles this when you file your return. Some families receive additional refunds if they were paid less than they were may have access to to.

Can I still get monthly payments in 2023?

No. The monthly advance payment program ended in December 2022. For 2023, you can only claim the Child Tax Credit on your tax return filed in 2024. You receive the credit as part of your refund or as a reduction in taxes owed.

What if my income changed between 2022 and 2023?

Report your actual 2023 income on your 2023 tax return. If your income was lower in 2023 than in 2022, you may be may have access to to a larger credit. If it was higher, your credit may be smaller or phase out entirely. The IRS will calculate the correct amount based on what you report.

Where do I find Form 6419 showing my advance payments?

The IRS mails Form 6419 to families who received advance Child Tax Credit payments. It shows the total amount paid to you in 2022. If you do not receive it by early February, you can create an IRS account at IRS.gov and view it online, or call the IRS at 1-800-829-1040.