What is the child tax credit for 2023?

Child Tax Credit Eligibility and Amount for Tax Year 2023

Eligibility Criteria

To be eligible for the Child Tax Credit for the tax year 2023, the following conditions must be met for each qualifying child:

1. Age Requirement:

  - The child must be under age 17 at the end of the year.

2. Relationship to the Claimant:

  - The child must be the taxpayer's son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of these (e.g., grandchild, niece, or nephew).

3. Support:

  - The child cannot provide more than half of their own financial support during the year.

4. Residency:

  - The child must have lived with the taxpayer for more than half of the year.

5. Dependent Status:

  - The child must be properly claimed as the taxpayer's dependent on the tax return.

6. Filing Status:

  - The child must not file a joint return with their spouse for the tax year unless it is only to claim a refund of withheld income tax or estimated tax paid.

7. Citizenship:

  - The child must have been a U.S. citizen, U.S. national, or U.S. resident alien.

8. Income Limits:

  - The full Child Tax Credit amount is available if the taxpayer's annual income is not more than $200,000, or $400,000 if filing a joint return. Partial credit may be available for parents and guardians with higher incomes.

Credit Amount

For the tax year 2023, the Child Tax Credit amount is as follows:

- Up to $2,000 per qualifying child.

- A portion of the Child Tax Credit is refundable. This portion is known as the Additional Child Tax Credit (ACTC), and for 2023, up to $1,600 per child may be refundable.

Claiming the Credit

To claim the Child Tax Credit, taxpayers should:

- Enter their children and other dependents on Form 1040, U.S. Individual Income Tax Return.

- Attach a completed Schedule 8812, Credits for Qualifying Children and Other Dependents, to their tax return.

Additional Information

Taxpayers who qualify for the Child Tax Credit may also be eligible for other tax credits, such as:

- Child and Dependent Care Credit

- Earned Income Tax Credit

- Adoption Credit and Adoption Assistance Programs

- Education credits

For those who do not have a "qualifying child" for the Child Tax Credit, they may qualify for the Credit for Other Dependents.

For further guidance, taxpayers can consult the following IRS publications:

- 2023 Instructions for Schedule 8812

- Publication 501, Dependents, Standard Deduction, and Filing Information

- Publication 519, U.S. Tax Guide for Aliens

Taxpayers can also use the IRS's Interactive Tax Assistant tool to check their eligibility for the Child Tax Credit.

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Sources:

Child Tax Credit | Internal Revenue Service 2024-08-01

Refundable tax credits | Internal Revenue Service 2024-08-04

Who Qualifies for the Earned Income Tax Credit (EITC) 2024-08-03

Credits for new clean vehicles purchased in 2023 or after 2024-08-02

Topic no. 607, Adoption credit and adoption assistance programs 2024-08-03

AOTC | Internal Revenue Service 2024-08-03

LLC | Internal Revenue Service 2024-08-03

Publication 501 (2023), Dependents, Standard Deduction, and Filing ... 2024-08-03

Publication 970 (2023), Tax Benefits for Education | Internal Revenue ... 2024-08-03

Employee Retention Credit | Internal Revenue Service 2024-08-03