For the 2023 tax year (to be filed in 2024), the child tax credit could be up to $2,000 per child, with a $1,600 potentially refundable tax credit. You will only be able to get the full tax credit if your modified adjusted gross income is under:
- $400,000 if married and filing jointly, and $200,000 for all others.
- The more your income, the less you qualify.
You could also qualify for the child and dependent care credit which covers up to 35% of up to $3,000 of child care and other costs for a child under 13, spouse, or parent who are your dependents. You can get up to $6,000 of expenses for two or more dependents. The higher your income, the lesser you qualify. If you made payments out of a dependent-care flexible spending account or any other already tax-advantaged program, your credit may be reduced further.
If you’ve adopted, the adoption credit covers up to $15,950 in adoption costs per child. The credit will phase out at $239,230 modified adjusted gross income, and incomes higher than $279,230 don’t qualify. The credit doesn’t apply to adopting your spouse’s child. If you’ve adopted children with functional needs, you can get the full credit even if your expenses were less.
A child who turns 17 during the tax year doesn’t qualify. To claim the tax credit, your child must be under 17 during the tax year. However, the child may qualify for another dependent tax credit worth $500.
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