Child Tax Credit Won’t Be Expanded — How Much You’ll Make in 2023

That figure seems worrying.
Moyo Studio / Getty Images

Efforts to partially restore an enhancement to the child tax credit did not succeed, as the expansion didn’t make the cut of the $1.7 trillion federal spending package for 2023.

Child Tax Credit: IRS Issues Important Reminder and 4 More Before Tax Season
Explore: Stimulus Checks Could Be Coming to These 4 States Soon

Democrats and progressives were vying to increase the refundability of the child tax credit so that more of the lowest-income families could continue to qualify for it, as they did under the American Rescue Plan’s temporary expansion in 2021.

The American Rescue Plan increased the Child Tax Credit from $2,000 per child to $3,000 per child for children over the age of six and from $2,000 to $3,600 for children under the age of six, and raised the age limit from 16 to 17. All taxpaying families qualified for the full credit if they made up to $150,000 for a couple or $112,500 for a family with a single parent/head of household.

But now that the days of the expanded child tax credit are looking officially over, things will presumably go back to the way they were before the American Rescue Plan took effect, meaning that families can only claim $2,000 per child in 2023.

Make Your Money Work

“Republican leaders decided to send a lump of coal to America’s children this year,” said Colorado Sen. Michael Bennet, one of those leading the efforts in the Senate, CNN reported on Tuesday. “We know that the most significant step Congress can take to help America’s children is to support an expanded Child Tax Credit. When Congress took action on this in 2021, we cut childhood poverty in America in half.”

More From GOBankingRates

Share This Article:

facebook sharing button
twitter sharing button
linkedin sharing button
email sharing button
Make Your Money Work

About the Author

Nicole Spector is a writer, editor, and author based in Los Angeles by way of Brooklyn. Her work has appeared in Vogue, the Atlantic, Vice, and The New Yorker. She's a frequent contributor to NBC News and Publishers Weekly. Her 2013 debut novel, "Fifty Shades of Dorian Gray" received laudatory blurbs from the likes of Fred Armisen and Ken Kalfus, and was published in the US, UK, France, and Russia — though nobody knows whatever happened with the Russian edition! She has an affinity for Twitter.
Learn More


See Today's Best
Banking Offers