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

For the 2023 tax year, you can claim $2,000 per may have access to child on your federal tax return. A may have access to child must be under age 17 at the end of 2023, claimed as your dependent, a U.S. citizen, national, or resident alien, and related to you by blood, marriage, or legal adoption. The credit reduces the federal income tax you owe dollar-for-dollar.

The $2,000 amount has stayed the same since 2018. It does not change year to year unless Congress passes new legislation. If you have three may have access to children, for example, your total credit would be $6,000 before any phase-out or income limits explore.

The credit is partially refundable, meaning you may receive money back even if you owe no tax. The refundable portion is called the Additional Child Tax Credit, and it can be up to $1,700 per child for 2023. This part depends on your earned income and filing status.

Key Takeaways

  • The child tax credit is $2,000 per child under age 17 for the 2023 tax year, and this amount applies to most families.
  • Your income determines whether you receive the full $2,000 or a reduced amount, with phase-out beginning at $400,000 for married couples filing jointly.
  • Up to $1,700 of the credit is refundable, meaning you may receive a refund even if you owe no tax, but this depends on your earned income.
  • You must have a valid Social Security number for each child to claim the credit, and the IRS verifies this information when you file.

Income limits and how the credit phases out

The child tax credit begins to reduce if your modified adjusted gross income (MAGI) exceeds certain thresholds. For married couples filing jointly in 2023, the phase-out starts at $400,000. For single filers and heads of household, it starts at $200,000. For married couples filing separately, it starts at $200,000.

Once your income exceeds the threshold, the credit decreases by $50 for each $1,000 (or fraction thereof) of income above the limit. If you are married filing jointly with $410,000 in MAGI, for example, you are $10,000 over the $400,000 threshold. That rounds up to 11 increments of $1,000, so your credit reduces by $550 (11 × $50). With two children, your $4,000 credit would become $3,450.

The phase-out can eliminate the credit entirely if your income is high enough. You can still claim the credit on Form 1040 even if phase-out reduces it to zero, but you will receive no benefit.

The refundable portion and how it works

The Additional Child Tax Credit (also called the refundable child tax credit) allows you to receive up to $1,700 per child as a refund, even if you owe no federal income tax. This portion exists because Congress designed the credit to help lower-income families, many of whom owe little or no tax.

To claim the refundable portion, you must have earned income — wages, self-employment income, or certain other forms of work-related income. The maximum refundable amount is the lesser of $1,700 per child or 15 percent of your earned income above $2,500. If you earned $20,000 and have one child, for example, 15 percent of ($20,000 − $2,500) is $2,625, but the credit caps at $1,700, so you would receive $1,700 as a refund.

You claim the refundable portion on Schedule 8812 (Form 1040), which you attach to your main tax return. The IRS processes this as part of your refund if you are owed money overall.

Who can claim the credit and what documents you need

You can claim the child tax credit if the child is your son, daughter, stepchild, foster child, sibling, or descendant of any of these (such as a grandchild or niece). The child must live with you for more than half the year, be claimed as your dependent on your return, and have a valid Social Security number issued before the tax return due date.

The Social Security number requirement is strict. If you file your return before the child's SSN arrives, the IRS will reject the credit. You can amend your return later using Form 1040-X once you have the number, but this delays any refund. Many families wait to file until they have all children's SSNs in hand.

You do not need to submit documents with your return, but keep records showing the child lived with you — lease agreements, school enrollment, medical records, or utility bills help if the IRS questions your claim. The IRS may ask for proof of the relationship and residency.

How to claim the credit on your tax return

You claim the child tax credit on Form 1040 (the main federal income tax form) in the section labeled "Credits." You list each may have access to child's name and Social Security number. The form calculates the credit amount based on the number of children and your income.

If you use tax software, the program walks you through questions about each child and fills in the credit automatically. If you file by hand, you enter the information in the designated lines and do the math yourself, or use the IRS worksheet provided in the Form 1040 instructions.

If you are claiming the refundable portion, you also complete Schedule 8812 and attach it to your Form 1040. This schedule calculates how much of the $1,700 refundable credit you can claim based on your earned income. The IRS combines this with any non-refundable credit you are owed.

Common mistakes that delay refunds or trigger audits

The most frequent error is listing an incorrect or incomplete Social Security number. Even a single digit wrong will cause the IRS to reject the credit. Double-check the SSN on the child's Social Security card or the IRS notice you received when the number was issued.

Another common mistake is claiming a child who does not meet the age requirement. The child must be under 17 at the end of 2023 — if they turn 17 on December 31, 2023, they do not may have access to. A child who turns 18 during 2023 does not may have access to for that year.

Claiming a child as a dependent when another parent or guardian also claims them will trigger an IRS notice. Only one person can claim each child. If parents are divorced or separated, the custodial parent (the one with whom the child lives most of the year) usually claims the credit, unless they sign a form agreeing to let the other parent claim it.

Overstating earned income to inflate the refundable portion is also audited frequently. The IRS matches your return to W-2 forms and 1099 forms your employer or clients file, so inflated income claims are caught.

What changed from 2022 to 2023

The credit amount itself did not change — it remained $2,000 per child. However, the income thresholds for phase-out increased slightly due to inflation adjustments. In 2022, the phase-out began at $400,000 for married couples filing jointly; in 2023, it also began at $400,000, so there was no change for that filing status.

The refundable portion cap of $1,700 also stayed the same from 2022 to 2023. The 15 percent calculation for earned income remained unchanged as well.

The main difference between years is that the temporary expansion of the credit that occurred in 2021 (when it was $3,600 per child and fully refundable) did not continue. That expansion was a one-time provision tied to pandemic relief and expired after 2021. For 2022 and 2023, the credit returned to the permanent $2,000 level.

Frequently Asked Questions

Can I claim the credit for a child born in December 2023?

Yes, if the child was born by December 31, 2023, and you have a valid Social Security number for them. The child does not need to have lived with you the entire year — they just need to be your dependent and meet the other requirements. Many families file their return after the child is born and the SSN arrives.

What if my child's Social Security number was not issued yet when I filed?

You can file your return without the credit and amend it later using Form 1040-X once you have the SSN. The IRS will process the amended return and send you the credit as a refund. This delays your refund by several weeks, so many people wait to file until they have all SSNs.

Do I lose the credit if my income is too high?

The credit phases out at high income levels, but it does not disappear completely until your income is well above the threshold. At $400,000 for married couples filing jointly, you lose $50 per $1,000 of income above that. You would need income around $440,000 or higher to lose the entire credit for two children.

Can I claim the credit if the child does not live with me the whole year?

No, the child must live with you for more than half the year. If a child lived with you for six months and their other parent for six months, you cannot claim the credit unless you and the other parent agree in writing that you will claim it.

Is the child tax credit the same as the Earned Income Tax Credit?

No, they are separate credits. The child tax credit is $2,000 per child under 17. The Earned Income Tax Credit (EITC) is a different credit based on your earned income and filing status, and it can be claimed by lower-income workers with or without children. You can claim both on the same return if you meet the requirements for each.