The 2023 Child Tax Credit was up to $2,000 per child under age 17

For the 2023 tax year, the Child Tax Credit provided up to $2,000 for each may have access to child under age 17. This amount has stayed the same since 2017 and is set to remain at $2,000 through 2025, unless Congress changes the law. The credit reduces the federal income tax you owe, dollar for dollar.

The $2,000 figure applies to most families, but the actual credit you receive depends on your household income. If your income exceeds certain thresholds, the credit begins to phase out — meaning it gets smaller. For 2023, the phase-out started at $400,000 for married couples filing jointly and $200,000 for single filers and heads of household.

You do not receive the credit automatically. You must claim it on your federal tax return (Form 1040) by listing each may have access to child's Social Security number. If you received advance payments of the credit in 2023 — money the IRS sent you monthly in 2021 and 2022 — you will need to reconcile those payments when you file.

Key Takeaways

  • The maximum credit for 2023 was $2,000 per child under age 17, though it phases out at higher incomes.
  • You must claim the credit on your tax return by providing each child's Social Security number.
  • If your income exceeded $400,000 (married filing jointly) or $200,000 (single), your credit was reduced by $50 for each $1,000 over the limit.
  • Advance payments sent in 2021 and 2022 must be reconciled on your 2023 return, which may reduce your refund or increase what you owe.

How income affects the credit amount

Your modified adjusted gross income (MAGI) determines whether you receive the full $2,000 or a reduced amount. For 2023, the IRS began reducing the credit by $50 for every $1,000 (or fraction thereof) that your income exceeded the threshold. This means the reduction happens in $50 increments, not smoothly.

If you were a single filer with income of $210,000, for example, your income was $10,000 over the $200,000 threshold. That triggers a $500 reduction ($50 × 10), bringing your credit from $2,000 to $1,500 per child. The phase-out continues until the credit reaches zero for those with very high incomes.

MAGI is not the same as gross income. It includes wages, self-employment income, interest, dividends, and certain other sources, but excludes some items like foreign earned income. If you are unsure of your MAGI, the IRS instructions for Form 1040 walk through the calculation, or a tax preparer can determine it for you.

What "may have access to child" means for the credit

Not every child in your household counts toward the $2,000 credit. The IRS has specific rules about who qualifies. The child must be under age 17 at the end of 2023, be your son, daughter, stepchild, foster child, sibling, or descendant of any of these, and have a valid Social Security number.

The child must also have lived with you for more than half of 2023. If you and another parent share custody, the parent who has custody for the greater number of nights can claim the credit — unless you have a written agreement saying otherwise. The child must be a U.S. citizen, national, or resident alien.

Additionally, the child cannot have provided more than half their own financial support during the year. If your 16-year-old worked and paid for their own housing and food, they would not count. The child also cannot file a joint return with a spouse (though this rarely applies to children under 17).

Reconciling advance payments from prior years

In 2021 and 2022, the IRS sent advance monthly payments of the Child Tax Credit to many families — up to $300 per child under 6 or $250 per child ages 6 to 17. These were not loans; they were advance payments of your 2021 and 2022 credits. When you filed your 2021 and 2022 tax returns, you had to account for what you received.

If you received more in advance payments than you were may have access to to based on your actual income and family situation, you had to pay back the difference. This could reduce your refund or increase what you owed. If you received less than you were may have access to to, the difference was added to your refund.

For 2023, there were no advance monthly payments. The credit returned to the standard process: you claim it on your tax return, and you receive it (or it reduces your tax bill) when you file. Make sure you have records of any advance payments you received in 2021 and 2022, as the IRS will have sent you a notice (Letter 6419) showing the total amount.

Refundable portion of the credit

Part of the Child Tax Credit is refundable, meaning you can receive money back even if you owe no federal income tax. The refundable portion is called the Additional Child Tax Credit or ACTC. For 2023, up to $1,700 of the $2,000 credit per child was refundable.

This matters if your tax bill is smaller than your total credit. For example, if you owe $800 in federal tax but have a $2,000 credit for one child, the first $800 of the credit wipes out your tax bill. The remaining $1,200 could be refunded to you — but only up to the $1,700 refundable limit per child. In this case, you would receive a $1,200 refund.

The refundable portion is limited to 15% of your earned income above $2,500. If your earned income is very low, this cap may reduce how much you can receive as a refund. You claim the refundable portion on Schedule 8812 (Additional Child Tax Credit) when you file your return.

How to claim the credit on your tax return

To claim the Child Tax Credit for 2023, you need Form 1040 (U.S. Individual Income Tax Return) and the child's full legal name and Social Security number. You enter this information on the form itself or on Schedule 8812 if you are claiming the refundable portion.

If you use tax software, the program will walk you through questions about each child and calculate the credit automatically. If you file by paper, you will fill in the child's information in the designated section of Form 1040. The IRS will verify the Social Security numbers you provide against their records.

If a Social Security number is incorrect or missing, the IRS will deny the credit for that child. You can still file your return, but you will not receive the credit until you correct the number and either file an amended return or contact the IRS. Keep copies of your return and any notices from the IRS about the credit.

Frequently Asked Questions

Do I get the full $2,000 if my child turned 17 in 2023?

No. The child must be under age 17 at the end of 2023 (December 31) to count. If your child turned 17 at any point during 2023, they do not may have access to for the $2,000 credit for that year. However, you may be able to claim other credits for them, such as the Credit for Other Dependents, which is $500 per dependent.

What if I share custody and my ex-partner claims the child?

Only one parent can claim the credit per child per year. The parent with custody for the greater number of nights in 2023 has the right to claim it. If you and the other parent split custody equally, you can agree in writing about who claims the credit, or the parent with the higher adjusted gross income can claim it by default. If there is a dispute, the IRS will contact you.

Can I claim the credit if my child does not have a Social Security number?

No. Your child must have a valid Social Security number to be counted. If your child was born in 2023 and you have not yet received their number, you can file your return without claiming them and file an amended return once you have the number. Alternatively, you can wait to file until you receive the Social Security number.

What happens if I received advance payments but my income changed in 2023?

If you received advance payments in 2021 or 2022 and your income was different in 2023, that does not affect those prior years. However, when you filed your 2021 and 2022 returns, you should have reconciled the advance payments you received against what you were may have access to to based on your actual 2021 and 2022 income. Your 2023 credit is based solely on your 2023 income and family situation.

Is the $2,000 credit the same for all children under 17?

Yes, the maximum credit is $2,000 per may have access to child under 17, regardless of the child's age. However, if your income is high enough to trigger the phase-out, all your children's credits are reduced by the same percentage. A family with three children might receive $6,000 total at full credit, but if income phase-out applies, each child's $2,000 is reduced equally.