What is the phase-out range for the Child Tax Credit for married couples filing jointly in 2023?

For 2023, the phase-out range for the Child Tax Credit for married couples filing jointly begins at $400,000. This means that families with an adjusted gross income (AGI) above this threshold will gradually see a reduction in the amount of the credit they can claim for each qualifying child.

This structure is part of the legislation that governs the Child Tax Credit, reflecting the government's intent to ensure that the benefits are targeted toward those who need it most, while still allowing some level of tax relief for families with higher incomes. The specific point at which the phase-out starts highlights a change from previous years, ensuring that more families with a higher aggregate income can benefit from the credit before it begins to decrease.

Understanding this phase-out threshold is crucial for tax planning and advising clients, as it directly affects the potential tax savings a family can receive based on their income level.