What the 2023 Child Tax Credit is

The Child Tax Credit is a federal tax credit that reduces the amount of income tax you owe, dollar for dollar. For 2023, you can claim up to $2,000 per child under age 17 who is a U.S. citizen, national, or resident alien. The credit applies to children you claim as dependents on your tax return.

Unlike a deduction, which lowers your taxable income, a credit directly reduces your tax bill. If you owe $3,000 in federal income tax and you have two children, the Child Tax Credit could reduce that bill to $1,000 (assuming you meet the income limits). If the credit is larger than the tax you owe, you may receive the difference as a refund, though this depends on which version of the credit you claim.

Key Takeaways

  • The 2023 Child Tax Credit is $2,000 per child under age 17, and it reduces your federal income tax dollar for dollar.
  • Your income must fall below $400,000 (married filing jointly) or $200,000 (single or head of household) to claim the full credit.
  • You must have a valid Social Security number for each child, and the child must be your dependent and under 17 at the end of 2023.
  • Part of the credit may be refundable, meaning you could receive money back even if you owe no tax, up to a limit set by your earned income.
  • You claim the credit on your 2023 tax return, filed by April 15, 2024, using Form 1040 and Schedule 8812 if you need to calculate the refundable portion.

Income limits and how they affect your credit

The full $2,000 credit is available if your modified adjusted gross income (MAGI) is below $400,000 if you are married filing jointly, or $200,000 if you are single, head of household, or married filing separately. Your MAGI is usually the same as your adjusted gross income (AGI) shown on your tax return.

If your income exceeds these thresholds, the credit begins to phase out. For every $1,000 (or fraction thereof) over the limit, the credit reduces by $50. For example, if you are single with an income of $210,000, you are $10,000 over the $200,000 threshold. That means your credit reduces by $500 per child (10 × $50), so instead of $2,000 per child, you would receive $1,500 per child.

The phase-out is calculated on your tax return. You do not need to do this math yourself when you file — your tax software or tax preparer will handle it.

Who can claim the credit

You can claim the Child Tax Credit for each child who meets all of these conditions at the end of 2023: the child is under age 17; the child is your son, daughter, stepchild, foster child, sibling, or a descendant of any of these (such as a niece or nephew); the child lived with you for more than half the year; you provide more than half the child's financial support; the child is a U.S. citizen, national, or resident alien; and the child has a valid Social Security number.

The child must also be someone you claim as a dependent on your tax return. If you and another person (such as a co-parent) both have custody, only one of you can claim the child as a dependent in a given year. If you cannot agree, the IRS has rules about who gets to claim the child, usually based on who has primary custody.

You do not have to be married or file jointly to claim the credit. Single parents, head-of-household filers, and married couples filing jointly can all claim it.

The refundable portion of the credit

Part of the Child Tax Credit is refundable, which means you can receive money back even if you owe no federal income tax. This refundable portion is called the Additional Child Tax Credit or the Refundable Child Tax Credit. For 2023, up to $1,700 per child can be refundable.

To claim the refundable portion, you must have earned income during the year — income from wages, self-employment, or other work. The refundable credit is limited to 15 percent of your earned income above $2,500. For example, if you earned $20,000 and have one child, 15 percent of ($20,000 − $2,500) is $2,625. Since the refundable credit is capped at $1,700 per child, you would receive the full $1,700 refund.

You calculate the refundable portion on Schedule 8812, which you attach to your Form 1040. If you use tax software, it will calculate this for you based on the information you enter.

How to claim the credit on your tax return

You claim the Child Tax Credit when you file your federal income tax return for 2023, due by April 15, 2024. You will need the following information for each child: the child's full legal name, the child's Social Security number, the child's relationship to you, and the child's date of birth.

On Form 1040, you list each may have access to child on the form itself. If you are claiming the refundable portion of the credit (the Additional Child Tax Credit), you must also complete Schedule 8812 and attach it to your return. Most tax software will prompt you to enter your children's information and will automatically calculate both the non-refundable and refundable portions of the credit.

If you file with a tax preparer or use a tax software service, make sure you have your children's Social Security numbers and birth dates ready. The IRS matches the information you provide against Social Security Administration records, so the numbers must be exact.

What documents you need

You do not need to send documents with your tax return, but you should keep them in case the IRS asks. For each child, keep a copy of their birth certificate or passport (to prove age and citizenship), their Social Security card or a document showing their Social Security number, and proof that the child lived with you for more than half the year (such as school records, medical records, or a lease showing the child's address).

If the child is a foster child or stepchild, keep documents showing the legal relationship, such as a court order or marriage certificate. If you provide more than half the child's support, keep receipts or records showing what you paid for housing, food, medical care, education, and other necessities.

The IRS does not require you to submit these documents when you file, but having them organized and available makes it much faster if the IRS requests verification.

Frequently Asked Questions

Can I claim the credit for a child who does not have a Social Security number?

No. Each child must have a valid Social Security number for you to claim the credit. If your child was born in the U.S. but does not yet have a Social Security number, you can request one from the Social Security Administration before you file your tax return. If your child is not a U.S. citizen or resident alien, you cannot claim this credit for them.

What if my child turned 17 during 2023?

You can claim the credit only if the child was under age 17 at the end of 2023 (December 31, 2023). If your child turned 17 on December 31, 2023, you cannot claim the Child Tax Credit for that year. However, you may be able to claim a different credit, such as the Credit for Other Dependents, which is $500 per dependent.

Do I lose the credit if my income is slightly over the limit?

Not entirely. The credit phases out gradually. For every $1,000 over the income threshold, the credit reduces by $50 per child. So even if you are over the limit, you may still receive part of the credit. Use a tax calculator or speak with a tax preparer to see how much you can claim based on your specific income.

Can both parents claim the credit if we share custody?

No. Only one parent can claim the child as a dependent in a given tax year, and only that parent can claim the Child Tax Credit for that child. If you and the other parent share custody, you must decide who will claim the child, or follow the IRS rules if you cannot agree. Usually, the parent with primary custody claims the child.

What if I owe back taxes or child support?

If you owe back federal income taxes, the IRS may use your refund to pay what you owe. If you owe child support, the state may also intercept your refund. You will not receive the refundable portion of the credit if it is seized to pay these debts, though you will still benefit from the non-refundable portion by reducing your tax bill.