Is there an income limit for claiming dependents? I have 3 kids and my tax is showing the same whether I have them as dependents or not?

No, there is no income limit for claiming dependents.  You can claim as many children as you have, but there is an income limit for the Advanced Child Tax Credit/Refundable Child Tax Credit.   

 

There is a phaseout for the Advanced Child Tax Credit/Refundable Child Tax Credit for 2021.   The Child Tax Credit phases out in two different steps based on your modified adjusted gross income (AGI) in 2021.

 

The first phaseout can reduce the Child Tax Credit to $2,000 per child.

 

• That is, the first phaseout step can reduce only the $1,600 increase for qualifying children ages 5 and under, and the $1,000 increase for qualifying children ages 6 through 17, at the end of 2021.

The second phaseout can reduce the remaining Child Tax Credit below $2,000 per child.

 

The Child Tax Credit begins to be reduced to $2,000 per child if your modified AGI in 2021 exceeds:

 

• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
• $112,500 if filing as head of household; or
• $75,000 if you are a single filer or are married and filing a separate return.

The first phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.

 

The Child Tax Credit won’t begin to be reduced below $2,000 per child until your modified AGI in 2021 exceeds:

 

• $400,000 if married and filing a joint return; or
• $200,000 for all other filing statuses.

The second phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.

 

 

Since there is no longer an exemption for dependents,

the phase out rules for credits based on AGI is essentially an income limit for claiming dependents.