The credit is worth up to $2,200 per child for 2026
For tax year 2026, the Child Tax Credit is worth up to $2,200 for each qualifying child. It is a credit, not a deduction. That means it cuts your tax bill dollar for dollar instead of lowering taxable income.
Part of the credit can be refundable, up to $1,700 per child. Higher earners see the credit shrink once income passes $200,000, or $400,000 for married couples filing jointly. You claim it on your 2026 return, filed in 2027, using Schedule 8812.
The 2026 figures reflect the One, Big, Beautiful Bill Act, signed July 4, 2025, and the IRS inflation adjustments published in October 2025. Amounts for later years can differ, so check the IRS figures for the year you are filing.
Who counts as a qualifying child
A child must meet several tests to qualify. The age and Social Security number rules are the ones most families check first.
- Age: the child must be under 17 at the end of 2026. A child who turns 17 on or before December 31 does not qualify for the full credit that year.
- Social Security number: the child needs a valid SSN issued before the return’s due date.
- Relationship: generally your son, daughter, stepchild, eligible foster child, sibling, half-sibling, step-sibling, or a descendant of one of these, such as a grandchild or niece.
- Residency: in general, the child lived with you for more than half the year. Temporary absences, such as school, can still count.
- Dependency and support: you claim the child as a dependent, and the child did not provide over half of their own support.
There are also rules about citizenship, joint returns filed by the child, and children of divorced or separated parents. The IRS Child Tax Credit page lists the full tests. A tax professional can help with unusual family situations.
2026 Child Tax Credit amounts at a glance
The table below shows the main 2026 figures. All amounts come from the IRS inflation adjustments for 2026.
| Item | 2026 amount |
|---|---|
| Maximum credit per qualifying child | $2,200 |
| Maximum refundable portion per child (ACTC) | $1,700 |
| Refundable portion formula | 15% of earned income above $2,500 |
| Credit for other dependents | $500 (nonrefundable) |
| Phase-out starts (MAGI) | $200,000; $400,000 married filing jointly |
| Phase-out rate | $50 per $1,000 (or part of $1,000) over the threshold |
Source: IRS Revenue Procedure 2025-32, section 4.05.
How the refundable portion works
The refundable part, called the Additional Child Tax Credit (ACTC), can pay you money even when you owe no income tax. It helps families whose tax bill is smaller than the full credit.
First, the credit reduces the income tax you owe. If some credit is left over, part of it may come back as a refund. The refundable amount is the smallest of three figures:
- The unused part of your credit.
- $1,700 times the number of qualifying children.
- 15% of your earned income above $2,500.
Example: a head of household parent has two qualifying children and $20,000 of wages. After the $24,150 standard deduction, taxable income is $0, so no income tax is owed. The full $4,400 credit is unused.
- Per-child cap: 2 × $1,700 = $3,400.
- Earned income test: 15% × ($20,000 − $2,500) = 15% × $17,500 = $2,625.
- The smaller figure wins, so the refundable credit is $2,625.
This parent may also qualify for the Earned Income Tax Credit, which is separate and not included here.
The other $1,775 of the credit ($4,400 − $2,625) goes unused. It is not carried forward to a later year. If this parent earned more, the 15% test would rise, and the refund could grow toward the $3,400 cap.
Larger family, partial tax bill
Now take a head of household parent with three qualifying children and $30,000 of wages. Taxable income is $30,000 − $24,150 = $5,850. Tax at 10% is $585, so the credit first wipes out that $585.
- Total credit: 3 × $2,200 = $6,600.
- Unused credit: $6,600 − $585 = $6,015.
- Per-child cap: 3 × $1,700 = $5,100.
- Earned income test: 15% × ($30,000 − $2,500) = $4,125.
- Refundable credit: the smallest figure, $4,125.
Here the earned income limit, not the per-child cap, sets the refund. In total, this family uses $585 + $4,125 = $4,710 of the credit. The remaining $1,890 is lost because it is neither usable nor refundable.
How the phase-out reduces the credit
The credit drops by $50 for every $1,000 of modified adjusted gross income (MAGI) above the threshold. Any part of $1,000 counts as a full $1,000. The threshold is $200,000 for most filers and $400,000 for married couples filing jointly.
For most families, MAGI is the same as adjusted gross income (AGI), the figure on line 11 of Form 1040. It adds back certain excluded income, such as foreign earned income. Because the test uses AGI-based income, pre-tax 401(k) contributions can lower it, while the standard deduction does not.
These thresholds are not indexed for inflation. The reduction applies to the combined total of the Child Tax Credit and the credit for other dependents. For a single filer with one child, the credit fully phases out at a MAGI of $244,000, since $2,200 ÷ $50 = 44 steps of $1,000.
Worked example: phase-out with an older dependent
A married couple files jointly with MAGI of $412,500. They have two children under 17 with valid SSNs. They also support a 19-year-old child who qualifies as their dependent but is too old for the Child Tax Credit.
- Child Tax Credit before phase-out: 2 × $2,200 = $4,400.
- Credit for other dependents: $500.
- Combined credit: $4,400 + $500 = $4,900.
- Income over the threshold: $412,500 − $400,000 = $12,500.
- Steps of $1,000, rounding up: $12,500 is 12.5, so 13 steps.
- Reduction: 13 × $50 = $650.
- Credit after phase-out: $4,900 − $650 = $4,250.
At this income the couple owes far more than $4,250 in tax, so the whole credit reduces their bill. None of it needs to be refunded.
Notice that the $500 credit for the older child is phased out too. The $650 reduction comes off the combined $4,900, not just the Child Tax Credit. If their MAGI were $400,000 or less, they would keep the full $4,900.
The $500 credit for other dependents and common mistakes
Dependents who do not qualify for the Child Tax Credit may still bring a $500 credit. This covers, for example, children who are 17 or older, college students you support, and qualifying relatives such as a parent who lives with you.
This credit is nonrefundable. It can lower your tax to zero but cannot create a refund on its own. It shares the same phase-out as the Child Tax Credit. Federal credits only are covered here; some states offer their own child credits.
A few errors come up often when families claim these credits:
- Counting a 17-year-old: age is checked on December 31, so a child who has turned 17 moves to the $500 credit.
- Missing SSN: a child with an ITIN instead of a valid SSN does not qualify for the $2,200 credit, though the $500 credit may still apply.
- Both parents claiming: only one taxpayer can claim a given child. Divorced or separated parents follow special IRS tie-breaker and release rules.
- Ignoring the rounding rule: MAGI just $1 over a $1,000 step triggers another $50 reduction.
Estimate your family’s credit
To run your own numbers, use the Child Tax Credit Calculator. It estimates the credit, the refundable portion and any phase-out from your filing status, income and number of children. Results are estimates, not official IRS figures.