A child tax credit is intended for people who are financially supporting—you guessed it—a child. For 2023, the credit is worth up to $2000 per child.
To qualify, a child must be under age 17 at the end of the year; have a Social Security number; be your child, stepchild, foster child, sibling, or descendant; live with you for more than half of the year; be claimed as your dependent; and pay for no more than half of their own expenses. You’ll also have to satisfy income requirements.
You may remember that in 2021, the pandemic-era American Rescue Plan Act expanded the child tax credit to $3000 per child between 6 and 17 years old and $3600 per child under 6. It made the child tax credit fully refundable and allowed taxpayers to get half of the money in advance monthly payments. This provision expired at the end of 2021, and though several legislators have taken steps to revive it, Congress has not revived the expanded child tax credit.
Today, the child tax credit has a refundable and nonrefundable portion. For 2023, the refundable part is worth up to $1500; it’s called the additional child tax credit.
