The 2023 Child Tax Credit amount and basic rules

The Child Tax Credit for 2023 is $2,000 per child under age 17. This is a dollar-for-dollar reduction in the federal income tax you owe, not a deduction. The credit applies to children who are U.S. citizens, nationals, or resident aliens with a valid Social Security number, and you must claim them as dependents on your tax return.

The credit phases out — meaning it shrinks — if your income exceeds certain thresholds. For 2023, the phase-out begins at $400,000 for married couples filing jointly and $200,000 for single filers. For every $1,000 (or fraction thereof) over the threshold, the credit reduces by $50.

You claim the Child Tax Credit on your federal tax return using Form 1040 and Schedule 8812. The IRS matches the Social Security number you provide against their records, so the number must be correct and the child must be a valid dependent under tax law.

Key Takeaways

  • The 2023 Child Tax Credit is $2,000 per may have access to child under age 17, claimed on your federal tax return.
  • Your child must have a valid Social Security number, be a U.S. citizen, national, or resident alien, and be claimed as your dependent.
  • The credit phases out if your income exceeds $400,000 (married filing jointly) or $200,000 (single), reducing by $50 for each $1,000 over the limit.
  • You claim the credit on Form 1040 and Schedule 8812 when you file your 2023 tax return.
  • If the credit exceeds the tax you owe, you may receive a refund of up to $1,700 per child through the refundable portion of the credit.

Income limits and how the phase-out works

The Child Tax Credit begins to shrink once your modified adjusted gross income (MAGI) crosses the threshold for your filing status. For 2023, those thresholds are $400,000 for married couples filing jointly, $200,000 for single filers, and $200,000 for heads of household.

The reduction happens in $50 increments. If you earn $1 over the threshold, the credit drops by $50. If you earn $1,001 over, it drops by $100. This means a single parent earning $210,000 would lose $500 of the credit ($50 × 10 increments of $1,000). The credit continues to phase out until it reaches zero.

MAGI for this purpose is generally your adjusted gross income from your tax return, but it can include certain foreign income or excluded income depending on your situation. If you are unsure whether your income triggers the phase-out, the IRS worksheet on Schedule 8812 walks you through the calculation.

Refundable versus non-refundable portions

Part of the Child Tax Credit is refundable, meaning you can receive money back even if you owe no tax. The refundable portion is called the Additional Child Tax Credit, and for 2023 it is limited to $1,700 per child. The remaining $300 per child ($2,000 minus $1,700) is non-refundable, so it can only reduce the tax you owe to zero.

To claim the refundable portion, your earned income must be at least $2,500 for the year. Earned income includes wages, self-employment income, and certain other compensation, but not investment income or benefits. If your earned income is below $2,500, you can still claim the non-refundable $300 portion if you have tax liability.

The IRS calculates the refundable amount using a formula on Schedule 8812. If you are may have access to to a refund, it will be included in your overall refund when you file your return or when the IRS processes it.

Who does not may have access to for the credit

Your child must be under age 17 at the end of 2023 to count toward the credit. A child who turns 17 on December 31, 2023 qualifies; a child who turns 17 on January 1, 2024 does not. The child must also be your son, daughter, stepchild, foster child, sibling, or descendant of any of these (such as a grandchild or niece), and you must provide more than half their financial support for the year.

The child must have a valid Social Security number issued before the tax return is filed. A number that is still pending or an Individual Taxpayer Identification Number (ITIN) does not may have access to. The child must also be a U.S. citizen, national, or resident alien — not a nonresident alien.

You cannot claim the credit for a child if someone else claims that child as a dependent on their return. If parents are divorced or separated, the parent with custody for the greater part of the year generally has the right to claim the child, unless they sign a form releasing the claim to the other parent.

How to claim the credit on your tax return

You report the Child Tax Credit on Form 1040 (the main federal income tax form) and Schedule 8812 (Additional Child Tax Credit). You will also need to complete Schedule 8812, Part I, which calculates whether your income triggers the phase-out.

On Form 1040, you list each may have access to child's name and Social Security number. The IRS verifies this information against Social Security Administration records. If the number is wrong or does not match the child's name, the IRS will deny the credit and send you a notice.

If you file electronically, tax software typically walks you through the questions and calculates the credit automatically. If you file by paper, you must complete the worksheets on Schedule 8812 yourself. The calculation is straightforward but requires careful attention to income thresholds and the phase-out formula.

What changed from 2022 to 2023

The Child Tax Credit amount remained $2,000 per child in 2023, the same as 2022. However, the income thresholds for the phase-out are adjusted annually for inflation. For 2023, the thresholds increased slightly from 2022 levels, meaning fewer families hit the phase-out range.

The refundable portion (Additional Child Tax Credit) also remained at $1,700 per child for 2023. This refundable limit has not changed since 2021, when the American Rescue Plan temporarily increased it from $1,400. Congress did not extend the higher refundable amount beyond 2021, so it returned to $1,700 for 2022 and 2023.

If you received advance Child Tax Credit payments in 2021 (when the credit was temporarily expanded and paid monthly), those payments do not affect your 2023 credit. Each tax year stands alone for credit purposes.

Frequently Asked Questions

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

Yes, if the child was born before December 31, 2023 and has a valid Social Security number by the time you file your return. The child does not need to have lived with you the entire year — only that you provided more than half their support in 2023. You will need the child's Social Security number to claim the credit.

What if my child's Social Security number is not yet issued?

You cannot claim the credit without a valid Social Security number. If your child was born late in the year and the number has not arrived, you can file your return without claiming the child and then file an amended return (Form 1040-X) once the number arrives. Some tax software allows you to hold a return and file it later once the number is received.

Do I lose the entire credit if my income is over the threshold?

No. The credit phases out gradually, not all at once. For every $1,000 over the threshold, you lose $50 of the credit per child. Most families will still receive at least some credit even if their income exceeds the threshold. Use the worksheet on Schedule 8812 to calculate your exact amount.

Can my ex-spouse and I split the credit between us?

No. Only one parent can claim the credit for each child. Generally, the parent with custody for more than half the year has the right to claim it. The custodial parent can sign Form 8332 to release the claim to the other parent, but the credit cannot be split or divided between you.

If I owe back taxes, will my refund be taken to pay them?

Yes. If you owe federal income tax from prior years, state income tax, child support, or certain other debts, the IRS can use your refund to pay those debts before sending you the remainder. This is called offset. You will receive a notice if this happens.