At what income level does a single taxpayer begin to phase out their eligibility for the Child Tax Credit in 2023?

• A. $150,000
• B. $200,000
• C. $250,000
• D. $300,000

Answer: (B)

The Child Tax Credit phase-out for single taxpayers begins at an income level of $200,000 in 2023. This means that once a single taxpayer's modified adjusted gross income (MAGI) exceeds this amount, the credit begins to decrease. The credit is fully available for those earning below the threshold, but as income surpasses $200,000, the amount of the credit is reduced by $50 for each $1,000 of income above that level. This phase-out structure is designed to target the benefit to middle and lower-income families, making it a progressive tax relief measure. Understanding this threshold helps taxpayers plan their finances and optimize their tax benefits related to dependents.