The 2023 Child Tax Credit amount and who receives it

The Child Tax Credit for 2023 is $2,000 per child under age 17 at the end of the tax year. You claim it on your 2023 tax return, which you file in early 2024. The credit reduces the federal income tax you owe dollar-for-dollar — if you owe $3,000 in tax and you have one may have access to child, the credit brings that down to $1,000.

The credit phases out if your income is above a certain threshold. For single filers, the phase-out begins at $400,000 of modified adjusted gross income. For married couples filing jointly, it begins at $800,000. For each $1,000 (or fraction of $1,000) over the threshold, the credit decreases by $50. This means high-income households may receive a smaller credit or none at all.

You do not need to have earned income to claim the credit, but your child must be a U.S. citizen, national, or resident alien with a valid Social Security number. The child must also be your dependent — meaning you provide more than half their financial support for the year.

Key Takeaways

  • The 2023 Child Tax Credit is $2,000 per may have access to child under age 17, claimed on your 2023 tax return filed in 2024.
  • The credit phases out for single filers earning over $400,000 and married couples earning over $800,000 of modified adjusted gross income.
  • Your child must be a U.S. citizen, national, or resident alien with a Social Security number and must be your dependent to count.
  • If the credit exceeds the tax you owe, you may receive a refund of up to $1,700 per child through the Additional Child Tax Credit.

How the credit works on your tax return

You claim the Child Tax Credit on Form 1040, Schedule 8812 (or directly on Form 1040 if you use tax software). You list each child's name, Social Security number, and relationship to you. The IRS matches this information against Social Security Administration records, so the Social Security number must be correct and issued before you file.

The credit is "nonrefundable" in its basic form, meaning it can reduce your tax bill to zero but cannot create a refund beyond that. However, the Additional Child Tax Credit (also claimed on Schedule 8812) allows you to receive a refund of up to $1,700 per child if you have earned income. This refundable portion is limited to 15 percent of your earned income over $2,500, so it depends on how much you earned during the year.

If you received advance Child Tax Credit payments in 2023 (which ended in December 2021, but some households received payments into early 2022), you must report those on your return. The IRS will have sent you a letter showing the total amount paid. You reconcile this against the credit you are may have access to to claim, and the difference either reduces your refund or increases the tax you owe.

Income limits and phase-out calculations

Your modified adjusted gross income (MAGI) determines whether the credit phases out. For most people, MAGI is the same as adjusted gross income (AGI) shown on your tax return. The phase-out thresholds are $400,000 for single filers and $800,000 for married couples filing jointly.

The phase-out works in $50 increments. For every $1,000 of income over the threshold (rounded up), the credit decreases by $50. If you earn $401,000 as a single filer, you are $1,000 over the $400,000 threshold, so your credit decreases by $50. If you earn $401,500, you are still treated as $2,000 over the threshold (because fractions round up), so your credit decreases by $100.

Use this formula: take your MAGI, subtract the threshold for your filing status, divide by $1,000 and round up, then multiply by $50. That is the reduction. Subtract the reduction from $2,000 per child to find your credit. If the result is negative, you receive no credit.

Dependents who do not may have access to

A child must be under age 17 at the end of 2023 to count. If your child turns 17 on December 31, 2023, they do not may have access to for 2023 (but will may have access to for 2024 if they are still under 17 on December 31, 2024). A child who turns 18 during 2023 does not may have access to for that year.

The child must be your dependent for the entire year. If you share custody, the parent who claims the child as a dependent on their tax return can claim the credit. If you and the other parent cannot agree, the IRS generally allows the parent with whom the child lived for the longer part of the year to claim the dependent status and the credit.

The child must have a valid Social Security number issued before you file your return. If you are waiting for a number to be issued, you cannot claim the credit until you have it. Adopted children and stepchildren count as long as they meet the age, citizenship, and dependent requirements.

Comparing the Child Tax Credit to other child-related credits

The Child Tax Credit is different from the Child and Dependent Care Credit, which covers expenses you pay for childcare so you can work. That credit is claimed on Form 2441 and is limited to $3,000 of care expenses per year (or $6,000 for two or more dependents). The maximum credit is $1,050 for one dependent or $2,100 for two or more.

The Earned Income Tax Credit (EITC) is a separate credit for low- to moderate-income workers. It is refundable, meaning you can receive a refund even if you owe no tax. The EITC amount depends on your income, filing status, and number of may have access to children. A household with one may have access to child may receive up to $3,733 in 2023, while a household with three or more may receive up to $3,995. You can claim both the Child Tax Credit and the EITC in the same year if you meet the requirements for each.

The Credit for Other Dependents is a $500 credit for dependents who do not may have access to for the Child Tax Credit — typically dependents age 17 and older, or adult dependents. It is claimed on the same form as the Child Tax Credit and phases out at the same income thresholds.

What happens if the IRS rejects your claim

The IRS may reject your Child Tax Credit claim if the Social Security number you provided does not match IRS records, if the child is not actually your dependent, or if your income exceeds the phase-out threshold. If this happens, the IRS will send you a notice explaining the reason and the amount of credit they disallowed.

If you believe the IRS made an error, you can respond to the notice by providing additional documentation — such as a birth certificate, adoption papers, or proof of custody. Keep copies of all documents you send. If you disagree with the IRS decision after responding, you have the right to appeal through the IRS Appeals process or to dispute the assessment in court, though this is rare for credit disputes.

The most common reason for rejection is a mismatched or incorrect Social Security number. Before you file, verify that each child's Social Security number is correct on your return. The IRS website allows you to create a free account and check your tax transcript, which shows what the IRS has on file for you.

Frequently Asked Questions

Can I claim the Child Tax Credit if my child was born on December 31, 2023?

No. The child must be under age 17 at the end of the tax year. A child born on December 31, 2023, is age 0 at the end of 2023, so they do may have access to for 2023. However, if your child was born on January 1, 2023, they are age 0 at the end of 2023 and do may have access to.

What if I share custody and the other parent claims the child as a dependent?

Only the parent who claims the child as a dependent on their tax return can claim the Child Tax Credit for that child. If you and the other parent cannot agree, the IRS generally allows the parent with whom the child lived for the longer part of the year to claim the dependent. You may want to consult a tax professional or family law attorney if custody is disputed.

Do I get the full $2,000 credit if I earned very little income?

The basic credit is nonrefundable, so it can only reduce your tax bill to zero. However, the Additional Child Tax Credit (the refundable portion) allows you to receive up to $1,700 per child as a refund if you have earned income. The refundable amount is limited to 15 percent of your earned income over $2,500, so the amount you receive depends on how much you earned.

If I received advance payments in 2022, do I need to report them on my 2023 return?

No. Advance Child Tax Credit payments ended in December 2021. If you received payments into early 2022, you reported them on your 2022 tax return. Your 2023 return is separate and does not involve those earlier payments.

Can I claim the credit for a child who is not a U.S. citizen?

The child must be a U.S. citizen, national, or resident alien. If your child is a nonresident alien, they do not may have access to for the Child Tax Credit, though you may be able to claim the Credit for Other Dependents ($500) if they meet other requirements.