Will the amount of my Child Tax Credit be reduced if my 2021 income is too high

Yes, the amount of your Child Tax Credit will be reduced if your 2021 income is too high. The reduction occurs in two phases based on your modified adjusted gross income (AGI).

1. First Phaseout: The Child Tax Credit begins to be reduced to $2,000 per child if your modified AGI exceeds:
   • $150,000 if you are married and filing a joint return, or if you are filing as a qualifying widow or widower.
   • $112,500 if you are filing as head of household.
   • $75,000 if you are a single filer or are married and filing a separate return.
2. The reduction is $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the applicable threshold.
3. Second Phaseout: The remaining Child Tax Credit is further reduced down to zero if your modified AGI exceeds:
   • $400,000 if married and filing a joint return.
   • $200,000 for all other filing statuses.
4. This phaseout also reduces the credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the applicable threshold.

For example, if you are married filing jointly with a modified AGI of $169,000 and have one qualifying child, the Child Tax Credit would be reduced to $2,000. If your modified AGI exceeds $400,000, the credit would be reduced further down to zero.

Sources:
§ 24. Child tax credit
Publication 501 (2023)
Rev. Proc. 2022-22