What the 2023 Child Tax Credit Gives You

The Child Tax Credit is a federal tax reduction you can claim for each child under 17 who lives with you and is a U.S. citizen, national, or resident alien. For 2023, the credit is worth up to $2,000 per child. The IRS subtracts this amount directly from the federal income tax you owe — it is not a deduction, which means it reduces your tax bill dollar-for-dollar rather than reducing your taxable income.

You claim the credit when you file your 2023 tax return in early 2024. The amount you receive depends on your income, your filing status, and how many children you have. If the credit is larger than the tax you owe, you may receive the difference as a refund, though there are limits on how much of the credit is refundable.

Key Takeaways

  • The 2023 Child Tax Credit is $2,000 per child under 17, claimed on your federal tax return when you file in 2024.
  • Your income determines whether you receive the full $2,000 or a reduced amount; the credit phases out at $400,000 for married couples filing jointly and $200,000 for single filers.
  • You must have a valid Social Security number for each child and be a U.S. citizen or resident alien to claim the credit.
  • If the credit exceeds your tax bill, you may receive up to $1,600 per child as a refund, depending on your earned income.

Income Limits and Phase-Out Rules

The full $2,000 credit is available if your modified adjusted gross income (MAGI) is below a certain threshold. For 2023, those thresholds are $400,000 for married couples filing jointly and $200,000 for single filers, heads of household, and married couples filing separately.

Once your income exceeds the threshold, the credit reduces by $50 for every $1,000 (or fraction thereof) over the limit. This means if you earn $201,000 as a single filer, you lose $50 from the credit. If you earn $202,000, you lose $100. The reduction continues until the credit reaches zero.

Your MAGI is usually your adjusted gross income from your tax return. If you received foreign earned income or certain other types of income, your MAGI may be calculated differently — check IRS Publication 972 or speak with a tax preparer if you think this applies to you.

Who Can Claim the Credit

You can claim the credit for a child if all of these are true: the child is under 17 at the end of 2023; the child is your son, daughter, stepchild, foster child, sibling, or descendant of any of these; the child lived with you for more than half of 2023; you paid more than half the child's living expenses during 2023; and the child is a U.S. citizen, national, or resident alien with a valid Social Security number.

You must also be a U.S. citizen, national, or resident alien yourself. If you are married, you can claim the credit on a joint return. If you are unmarried, you can claim it on a single return or as head of household.

You cannot claim the credit for a child if that child filed a joint tax return with a spouse, or if someone else claims the child as a dependent on their return. Only one person can claim the credit for each child in a given year.

What Documents You Need

To claim the credit, you will need the child's full legal name and valid Social Security number. The Social Security number must be issued by the Social Security Administration — an Individual Taxpayer Identification Number (ITIN) does not may have access to for the Child Tax Credit, though it may may have access to for the Credit for Other Dependents.

You will also need proof that the child lived with you for more than half the year. This can be school records, medical records, utility bills, lease agreements, or other documents showing the child's address. Keep these records for your files but do not send them with your return unless the IRS asks for them.

If you are claiming the credit for a foster child, you may need to provide court documents or other proof of the foster care arrangement. If the child's other parent also claims the child, the IRS will contact you to resolve the conflict — only one person can receive the credit per child per year.

How the Refundable Portion Works

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, and for 2023 it is limited to $1,600 per child.

To receive the refundable portion, you must have earned income during 2023 — wages, self-employment income, or other work-related earnings. The refundable amount is 15 percent of your earned income above $2,500, up to the $1,600 limit per child. If you have three children and $50,000 in earned income, for example, your refundable credit would be $1,600 per child (the maximum), for a total of $4,800.

The refundable portion is calculated on Schedule 8812 (Form 1040), which you file along with your tax return. If you are unsure whether you have enough earned income to receive the full refundable amount, a tax preparer or the IRS Free File program can help you calculate it.

How to Claim the Credit on Your Return

You claim the Child Tax Credit on Form 1040 (the main federal income tax form) by listing each child's name, Social Security number, and relationship to you. The form asks for the child's age and whether the child lived with you for the required time. You then enter the total credit amount on the appropriate line.

If you use tax software or a tax preparer, they will ask you these questions and calculate the credit for you. If you file by hand, you will use the Child Tax Credit Worksheet in the Form 1040 instructions to calculate your credit amount, then enter it on Form 1040.

If you think you may be owed the refundable portion, you will also need to complete Schedule 8812. Again, tax software and preparers handle this automatically. The IRS Free File program (available at IRS.gov) offers free tax software to people who earn below a certain income threshold.

What Changed From 2022 to 2023

The Child Tax Credit amount stayed at $2,000 per child for 2023 — it did not increase from 2022. The income thresholds also remained the same: $400,000 for married couples filing jointly and $200,000 for single filers.

In 2021 and 2022, the credit was temporarily expanded to $3,000 or $3,600 per child and was partially refundable without an earned income requirement. That expansion ended after 2022. For 2023 and beyond, the credit returned to $2,000 per child with the standard refundable limit of $1,600.

Some proposals in Congress would change the credit again in future years, but for 2023 tax returns filed in 2024, the $2,000 amount and current rules apply.

Frequently Asked Questions

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

No. The child must have a valid Social Security number issued by the Social Security Administration. An ITIN does not may have access to for the Child Tax Credit, though you may be able to claim the Credit for Other Dependents instead, which is worth up to $500 per dependent.

What if my child turned 17 during 2023?

You cannot claim the Child Tax Credit for a child who is 17 or older at the end of the tax year. If your child turned 17 on December 31, 2023, you cannot claim the credit for 2023. If they turned 17 on January 1, 2024, you can claim it for 2023.

Do I have to claim the credit, or can I skip it?

You do not have to claim it, but there is no reason not to — it reduces your tax bill or increases your refund. If you are unsure whether you meet the requirements, a tax preparer or the IRS can help you determine whether you are able to claim it.

What happens if two parents both claim the same child?

The IRS will identify the duplicate claim and contact you. Only one person can claim the credit per child per year. If you and the other parent cannot agree, the IRS has rules about who gets priority — generally, the parent with whom the child lived for the longer period during the year.

Can I claim the credit if I am not a U.S. citizen?

You must be a U.S. citizen, national, or resident alien to claim the Child Tax Credit. If you have an ITIN and are not a resident alien, you may not be able to claim this credit, though you may may have access to for other tax benefits. Speak with a tax preparer about your specific situation.