The Child Tax Credit is a federal tax credit designed to help families offset the cost of raising children. For Tax Year 2023, the credit is worth up to $2,000 per child under age 17 at the end of the tax year, and is subtracted from the amount of income taxes the family owes.
If the credit exceeds the amount of taxes the family owes, a percentage of the remaining credit is given back to the family in a refund check. Up to $1,600 of the credit is refundable.
The full credit is available for single filers with income of $200,000 or less and joint filers with income of $400,000 or less. Partial credit may be available for those with higher income.
A family can apply for the Child Tax Credit in addition to the Earned Income Tax Credit (EITC) and the Child and Dependent Care Tax Credit (CDCTC). The EITC and CDCTC do not affect a family’s eligibility for this credit.
- The child must be a US citizen, U.S. national, or resident alien who resides with the taxpayer,
- The child must be a son, daughter, adopted child, grandchild, stepchild, or foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these
- The child must be under 17 at the end of the year,
- The child must qualify as a dependent for your tax return, and
- The child must have a valid Social Security number by the return due date.
How to Apply
People may want to try to use the IRS Free File options available on the IRS website.