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

For the 2023 tax year, the Child Tax Credit provided $2,000 for each may have access to child under age 17 at the end of 2023. This amount had been set by the Tax Cuts and Jobs Act of 2017 and remained unchanged through 2023. The credit reduced the federal income tax you owed dollar-for-dollar, or resulted in a refund if the credit exceeded your tax liability.

The credit was not the same for all households. Your income determined whether you received the full $2,000 per child or a reduced amount. If your modified adjusted gross income (MAGI) exceeded certain thresholds, the credit began to phase out — meaning it decreased by $50 for every $1,000 (or fraction thereof) over the limit.

Key Takeaways

  • The 2023 Child Tax Credit was $2,000 per may have access to child under age 17, with income limits that reduced the credit for higher earners.
  • The phase-out thresholds were $400,000 for married couples filing jointly and $200,000 for single filers, head of household, and may have access to widow(er)s.
  • You needed a valid Social Security number for each child to claim the credit on your 2023 tax return.
  • The credit could result in a refund of up to $1,600 per child if you had little or no tax liability, though the refundable portion was limited.

Income limits and phase-out rules for 2023

The full $2,000 credit was available only if your MAGI stayed below the phase-out threshold. For married couples filing jointly, that threshold was $400,000. For single filers, head of household filers, and may have access to widow(er)s, the threshold was $200,000.

Once your income crossed the threshold, the credit decreased by $50 for each $1,000 of income over the limit. If you were $1 over the threshold, you lost $50. If you were $1,500 over, you lost $100. This phase-out continued until the credit reached zero for those with very high incomes.

MAGI for this purpose typically meant your adjusted gross income (AGI) as shown on your tax return, with certain modifications. Most households used their AGI directly. If you had foreign earned income, foreign housing exclusions, or certain other items, you needed to add those back to calculate MAGI.

Who could claim the Child Tax Credit in 2023

To claim a child on your 2023 return, the child had to meet five tests: relationship, age, citizenship, residency, and support. The child had to be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these (such as a grandchild or niece). The child had to be under age 17 at the end of 2023.

The child had to be a U.S. citizen, national, or resident alien. The child had to have lived with you for more than half of 2023 (with limited exceptions for temporary absences). You had to provide more than half the child's financial support for the year.

Each may have access to child needed a valid Social Security number. If a child did not have an SSN by the time you filed your return, you could not claim the credit for that child in 2023, even if they received an SSN later.

Refundable vs. non-refundable portions of the credit

The Child Tax Credit had two parts: a non-refundable portion and a refundable portion. The non-refundable part reduced your tax liability but could not result in a refund if the credit exceeded what you owed. The refundable part, called the Additional Child Tax Credit, could produce a refund.

In 2023, up to $1,600 per child of the $2,000 credit could be refundable. This meant that if you had no federal income tax liability, you could still receive a refund of up to $1,600 per may have access to child. The refundable amount was limited to 15 percent of your earned income over $2,500, so very low-income households sometimes received less than the full $1,600 refund.

To claim the refundable portion, you had to have earned income (wages, self-employment income, or certain other types). If you had no earned income, you could not receive the refundable credit, though you could still claim the non-refundable portion if you had tax liability.

How the 2023 credit differed from 2021 and 2022

The $2,000 per-child amount in 2023 was the same as it had been since 2018. However, the years 2021 and 2022 were different. In 2021, the credit was temporarily increased to $3,600 per child under age 6 and $3,000 per child ages 6 through 17. In 2022, it returned to $2,000 per child.

The 2021 expansion also allowed the credit to be paid in monthly advance payments to families who registered with the IRS. That advance payment program ended after 2021. In 2023, the credit was claimed only on your tax return when you filed.

What changed for 2024 and beyond

The $2,000 per-child amount was set to expire after 2025 under current law. Starting in 2026, the credit would revert to $1,000 per child unless Congress extended or modified it. The income phase-out thresholds were also scheduled to adjust for inflation each year, so the 2024 thresholds were slightly higher than 2023.

Tax law changes frequently, and future Congresses may alter the credit amount, income limits, or other rules. If you are planning ahead or have questions about how changes might affect your situation, you should consult a tax professional or check the IRS website for updates.

Frequently Asked Questions

Can I claim the Child Tax Credit if my child doesn't have a Social Security number yet?

No. Your child must have a valid Social Security number by the time you file your 2023 return. If your child was born late in 2023 and did not yet have an SSN, you could not claim the credit for that child in 2023. You could claim it in 2024 once the child had an SSN and you filed your 2024 return.

What if my income is above the phase-out threshold?

Your credit decreases by $50 for every $1,000 of income over the threshold. If you are $2,000 over the threshold, you lose $100 from the credit. You may still receive some credit if your income is not too far above the limit, but the amount will be reduced. Use IRS worksheets or tax software to calculate the exact reduction.

Does the Child Tax Credit apply to adopted children?

Yes, if the adoption was finalized before the end of 2023, the child meets all other tests (age, citizenship, residency, support), and you have their Social Security number. If the adoption was not yet finalized by December 31, 2023, you could not claim the credit for that child in 2023.

Can I get a refund if the credit is larger than my tax bill?

Up to $1,600 per child can be refundable, meaning you may receive a refund even if you owe no federal income tax. The refundable amount is limited to 15 percent of your earned income over $2,500. If you have no earned income, you cannot receive the refundable portion, though you can still use the non-refundable portion to reduce any tax you owe.

What counts as earned income for the refundable credit?

Earned income includes wages, salaries, tips, and net self-employment income. It does not include investment income, Social Security benefits, unemployment benefits, or welfare payments. You must have at least $2,500 in earned income to may have access to for any refundable portion of the credit.