For families with children, the Child Tax Credit (CTC) is usually the single largest federal tax break on the return. The 2025 tax law made it permanent at $2,200 per child and tied future amounts to inflation. This article explains exactly what the credit is worth in 2026, how much is refundable, who qualifies under the tightened Social Security number rules, and the income level at which it disappears. Every figure below is drawn from IRS Revenue Procedure 2025-32 (published in Internal Revenue Bulletin 2025-45) and the One Big Beautiful Bill Act (Public Law 119-21, Section 70104).
How much is the Child Tax Credit in 2026?
For the 2026 tax year (the return you file in early 2027), the maximum credit is:
- $2,200 per qualifying child under age 17 (IRS Rev. Proc. 2025-32, section 24(a))
- A family with two qualifying children can claim up to $4,400; with three, up to $6,600
The $2,200 amount is unchanged from 2025. The One Big Beautiful Bill Act, signed July 4, 2025, raised the credit from $2,000 to $2,200 starting in tax year 2025 and made that level permanent. Because the amount is now indexed for inflation and rounds to the nearest $100, it did not move between 2025 and 2026. Future years are expected to rise by small inflation steps.
2026 Child Tax Credit at a glance
| Item | 2026 amount |
|---|---|
| Maximum credit per qualifying child | $2,200 |
| Maximum refundable portion (ACTC) per child | $1,700 |
| Earned income needed to start refundability | $2,500 |
| Refundability rate | 15% of earned income above $2,500 |
| Phase-out starts (single, head of household, MFS) | $200,000 MAGI |
| Phase-out starts (married filing jointly) | $400,000 MAGI |
| Phase-out rate | $50 per $1,000 of MAGI over the threshold |
| Credit for Other Dependents (nonrefundable) | $500 per dependent |
| Child age limit | Under 17 on December 31, 2026 |
How much of the credit is refundable?
The CTC is only partly refundable. For 2026:
- Up to $1,700 per child can be refunded as the Additional Child Tax Credit (ACTC) when your tax liability is too low to use the full credit (IRS Rev. Proc. 2025-32, section 24(d)(1)(A)).
- To begin receiving the refundable portion you need at least $2,500 of earned income. The refundable amount equals 15% of your earned income above $2,500, capped at $1,700 per child.
- The rest of the credit is nonrefundable: it can only reduce taxes you otherwise owe, not generate a refund.
Worked example: a married couple with two children
A couple filing jointly with two children and $60,000 of earned income:
- Gross CTC: $2,200 x 2 = $4,400
- Refundable ACTC: 15% x ($60,000 - $2,500) = $8,625, capped at $1,700 x 2 = $3,400
- If their federal income tax before the CTC is $3,000, they use $3,000 of the nonrefundable credit and can claim up to $3,400 of ACTC as a refund
The total benefit cannot exceed $2,200 per child. The $1,700 figure is only the refundable slice; the remaining $500 per child is nonrefundable.
Worked example: a single parent near the phase-out
A single filer with one child and MAGI of $215,000:
- Full credit would be $2,200
- MAGI is $15,000 over the $200,000 threshold
- Reduction: $50 x 15 = $750
- Allowable credit: $2,200 - $750 = $1,450
The credit is not all or nothing. It shrinks gradually and reaches zero only well above the threshold.
Credit by income and family size
| Filing status | MAGI | Children | Credit |
|---|---|---|---|
| Single | $50,000 | 1 | $2,200 (full) |
| Married joint | $150,000 | 2 | $4,400 (full) |
| Single | $215,000 | 1 | $1,450 (partial) |
| Married joint | $420,000 | 2 | $3,400 (partial) |
| Single | $244,000 | 1 | $0 (fully phased out) |
Who qualifies: the seven child tests
The IRS applies seven tests to the child:
- Age — under 17 at the end of 2026. A child who turns 17 on December 31, 2026 does not qualify for the CTC but may qualify for the $500 Credit for Other Dependents.
- Relationship — son, daughter, stepchild, eligible foster child, sibling, or a descendant such as a grandchild, niece, or nephew.
- Support — the child does not provide more than half of their own support for the year.
- Residency — the child lived with you for more than half of 2026.
- Dependent status — you claim the child as a dependent on your return.
- Citizenship — the child is a U.S. citizen, U.S. national, or U.S. resident alien.
- Social Security number — the child must have an SSN valid for employment, issued before the due date of your return (including extensions).
The new parent SSN rule
Starting in tax year 2025, the person claiming the credit must also have a Social Security number valid for employment. If you file jointly, at least one spouse needs a valid SSN. A return that shows only an Individual Taxpayer Identification Number (ITIN) cannot claim the CTC, even if the child has an SSN. The Tax Policy Center estimates this rule affects roughly 500,000 children. Families blocked from the CTC may still claim the $500 Credit for Other Dependents, which does not carry the same SSN requirement for the dependent.
The $500 Credit for Other Dependents
Dependents who do not qualify for the CTC — older teens, college students, other relatives you support, or dependents with ITINs — may qualify for a $500 nonrefundable Credit for Other Dependents. It is claimed on the same form, Schedule 8812, and is separate from the $2,200 CTC.
How to claim the credit
You report the CTC on Form 1040 and attach Schedule 8812 (Credits for Qualifying Children and Other Dependents). The nonrefundable amount flows to Form 1040, line 19; the refundable ACTC flows to line 28. Tax software handles the calculation, but you must enter each qualifying child's SSN exactly as printed on the card.
How the CTC fits with the rest of your return
The CTC is a credit, not a deduction, so it reduces your tax dollar for dollar rather than your taxable income. It stacks on top of the standard deduction, the child and dependent care credit, and the earned income credit for those who qualify for more than one. It does not change your bracket or your taxable income.
Planning tips for 2026
- If your income is near the $200,000 or $400,000 phase-out, a traditional IRA or 401(k) contribution that lowers MAGI can preserve part of the credit.
- New parents should claim the child for the year they are born, even if born on December 31, 2026.
- If you owe little or no tax, make sure earned income exceeds $2,500 so the refundable ACTC is available.
- Check state conformity: some states do not conform to the federal CTC or offer their own child credits; verify with your state revenue department.
Interaction with state taxes
The federal CTC does not affect your state return directly, but many states use federal AGI as a starting point and either offer their own child credit or conform partly to the federal one. Because state rules vary, confirm your state's treatment with its Department of Revenue rather than assuming it matches the federal credit.
Common mistakes
- Forgetting the new parent SSN rule and having the credit denied
- Assuming the full $2,200 is refundable (only $1,700 is)
- Missing the $500 Credit for Other Dependents for a college-age dependent
- Not updating withholding or estimated payments after a new child arrives
- Confusing the CTC with the temporarily expanded 2021 version
A note on the 2021 expansion
The temporarily expanded 2021 credit ($3,000 or $3,600 per child, fully refundable, with monthly advance payments) expired after 2021 and was not revived by the 2025 law. Today's $2,200 credit is generous by historical standards but is only partly refundable, so it cannot push a family's tax below zero by more than the $1,700-per-child ACTC.
Disclaimer: This article is general educational information, not tax, legal, or investment advice. Dollar amounts come from the 2026 sources listed at the end of this article and may change. Before you act, talk to a licensed CPA, EA, or tax attorney about your own situation.