Child Tax Credit 2026 — Income Limits, Refundability, and How to Claim It
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Key Takeaways
The 2026 Child Tax Credit is $2,200 per qualifying child under 17, with up to $1,700 refundable through the Additional Child Tax Credit.
Income phase-outs begin at $400,000 for married filing jointly and $200,000 for all other statuses, with the credit reduced by $50 per $1,000 above the threshold.
The refundable ACTC is calculated as 15% of earned income above $2,500, making it particularly valuable for lower- and middle-income families.
Qualifying children must have a valid Social Security number — an ITIN qualifies only for the $500 Other Dependents Credit.
The CTC can be combined with the EITC and other credits for total family tax benefits exceeding $14,000 per year.
The Child Tax Credit (CTC) is one of the most valuable federal tax benefits available to American families. For the 2026 tax year, the credit stands at $2,200 per qualifying child under age 17 — a meaningful reduction that applies directly against your tax bill, dollar for dollar. Unlike a deduction, which merely reduces your taxable income, a credit reduces the actual tax you owe.
The CTC also includes a partially refundable component: the Additional Child Tax Credit (ACTC), which allows families with limited tax liability to receive up to $1,700 per qualifying child as a direct refund. This refundable portion is particularly significant for lower- and middle-income families who might not owe enough in federal taxes to fully use the nonrefundable credit.
Navigating the CTC's income phase-outs, qualifying child rules, and interaction with other credits like the Earned Income Tax Credit requires careful attention. This guide breaks down the 2026 rules so you can determine exactly how much you qualify for and how to claim the full credit on your return. For context on how the CTC fits into your broader tax picture, see our guides on [Federal Tax Brackets for 2026](/article/federal-tax-brackets-for-2026-rates-income-thresholds-and-filing-strategies) and [Standard Deduction 2026](/taxes).
2026 Child Tax Credit Amounts and Qualifying Rules
2026 Tax Credit per Dependent by Category
Income Phase-Outs — When the Credit Starts to Shrink
Refundable vs. Nonrefundable — Understanding the Additional Child Tax Credit
How to Claim the Child Tax Credit on Your Return
CTC Interaction with Other Tax Credits and Benefits
Conclusion
The Child Tax Credit remains one of the federal tax code's most impactful family benefits. At $2,200 per qualifying child for 2026, with up to $1,700 refundable through the ACTC, the credit delivers meaningful financial relief to families across the income spectrum. The generous phase-out thresholds — $400,000 for married couples and $200,000 for other filers — ensure that even upper-middle-income families receive the full benefit.
The key to maximizing the CTC is understanding its dual structure. The nonrefundable portion reduces taxes owed, while the refundable ACTC provides cash back for families whose tax liability is smaller than the credit. Combined with the Earned Income Tax Credit and other family-oriented provisions, the CTC can result in total federal credits exceeding $14,000 for qualifying families with multiple children.
For the complete picture of how the CTC fits into your 2026 tax planning, explore our [Federal Tax Brackets](/article/federal-tax-brackets-for-2026-rates-income-thresholds-and-filing-strategies) guide, our [Standard Deduction overview](/taxes), and our [Capital Gains Tax](/article/capital-gains-tax-explained-short-term-vs-long-term-rates-and-how-to-minimize-your-tax-bill) explainer. Together, these guides cover the essential building blocks of personal tax strategy for the current year.
Disclaimer: This content is AI-generated for informational purposes only and does not constitute financial advice. Consult qualified professionals before making investment decisions.
The Child Tax Credit for tax year 2026 provides up to $2,200 per qualifying child. To qualify, a child must meet all of the following criteria:
Age: Under 17 at the end of the tax year (born after December 31, 2009 for the 2026 tax year)
Relationship: Your son, daughter, stepchild, foster child, sibling, step-sibling, or a descendant of any of these (grandchild, niece, nephew)
Residency: Lived with you for more than half the tax year (temporary absences for school, medical care, or military service count as living with you)
Support: The child did not provide more than half of their own financial support during the year
Citizenship: Must be a U.S. citizen, U.S. national, or U.S. resident alien with a valid Social Security number issued before the due date of your return
Dependency: You must claim the child as a dependent on your return
Dependents aged 17 through 24 (who are full-time students) or other qualifying relatives do not qualify for the $2,200 CTC but may qualify for a $500 Credit for Other Dependents (ODC). This nonrefundable $500 credit also applies to dependents who are not U.S. citizens but have an Individual Taxpayer Identification Number (ITIN).
The Child Tax Credit phases out for higher-income taxpayers. The phase-out thresholds for the 2026 tax year are:
Married Filing Jointly: Phase-out begins at $400,000 of modified adjusted gross income (MAGI)
All Other Filing Statuses: Phase-out begins at $200,000 of MAGI
The phase-out reduces the credit by $50 for every $1,000 (or fraction thereof) of MAGI above the threshold. For a married couple filing jointly with two qualifying children ($4,400 total CTC) and a MAGI of $440,000, the calculation works as follows:
The credit is fully eliminated when the reduction exceeds the total credit amount. For a married couple with one qualifying child, the CTC phases out completely at $444,000 in MAGI. For two children, the full phase-out occurs at $488,000.
Notably, these thresholds have not been indexed for inflation since the Tax Cuts and Jobs Act set them in 2018. While the standard deduction and tax brackets rise each year with CPI adjustments, the CTC income limits remain fixed — meaning more families gradually phase out of the credit as wages and investment income grow with inflation.
The Child Tax Credit has two components that work differently:
Nonrefundable portion ($2,200 per child): This reduces your tax liability dollar for dollar, but only down to zero. If you owe $3,000 in federal taxes and have one qualifying child, the $2,200 CTC reduces your bill to $800. But if you owe only $1,500, the nonrefundable credit reduces your tax to zero — you do not receive the remaining $700 as a refund.
Refundable portion — the Additional Child Tax Credit (up to $1,700): The ACTC allows taxpayers who cannot fully use the nonrefundable CTC to receive a refund of up to $1,700 per qualifying child. The ACTC is calculated as 15% of your earned income above $2,500.
For example, a single parent earning $30,000 with one qualifying child:
Earned income above $2,500: $30,000 − $2,500 = $27,500
15% of excess earned income: $27,500 × 0.15 = $4,125
ACTC cap: $1,700 per child
Refundable amount: $1,700 (the $4,125 exceeds the cap)
For lower-income families, the refundable portion is often more valuable than the nonrefundable credit because their tax liability before the CTC is small. A family with $20,000 in earned income, a standard deduction of $16,100, and taxable income of $3,900 would owe only $390 in federal tax (10% bracket). The nonrefundable CTC covers the $390, and the ACTC provides an additional refund of up to $1,700.
The earned income threshold ($2,500) means the ACTC is not available to families with no earned income. This is an important distinction from the pandemic-era expanded CTC (2021), which was fully refundable regardless of income.
Claiming the CTC requires specific steps on your federal tax return:
Step 1: Complete your Form 1040. The CTC is claimed on line 19 of Form 1040. You do not need a separate form for the nonrefundable portion if your situation is straightforward.
Step 2: Use Schedule 8812 (Credits for Qualifying Children). This schedule calculates both the nonrefundable CTC and the refundable ACTC. It walks through the income phase-out calculation and determines how much credit you can claim. If any portion of your CTC exceeds your tax liability, Schedule 8812 calculates the ACTC refund amount.
Step 3: Ensure valid Social Security Numbers. Each qualifying child must have a Social Security number (SSN) issued before the tax return due date (including extensions). An ITIN does not qualify for the CTC, though it does qualify for the $500 Other Dependents Credit.
Step 4: Report the credit. The nonrefundable CTC goes on Form 1040, line 19. The refundable ACTC goes on line 28. These are separate line items because they interact differently with your total tax liability.
Common filing scenarios:
Divorced or separated parents: Only the custodial parent (the parent with whom the child lived for more than half the year) can claim the CTC, unless they sign Form 8332 releasing the exemption to the noncustodial parent. If the noncustodial parent claims the CTC with a signed Form 8332, they get the nonrefundable credit but the custodial parent retains the right to claim the Earned Income Tax Credit.
Multiple children: Each qualifying child generates a separate $2,200 credit. A family with three qualifying children could receive up to $6,600 in nonrefundable credits and up to $5,100 in refundable ACTC.
The Child Tax Credit interacts with several other federal tax provisions that families should understand:
Earned Income Tax Credit (EITC): The EITC and CTC can be claimed together. In fact, the combination is often the largest source of refunds for lower-income working families. For 2026, the maximum EITC for a family with three or more children is approximately $8,046. Combined with the CTC, a qualifying family with three children could receive over $14,000 in federal credits.
Child and Dependent Care Credit: Separate from the CTC, this credit covers a percentage of childcare expenses incurred while the parents work. The maximum credit is $1,050 for one child or $2,100 for two or more children (20-35% of qualifying expenses depending on income). This credit is nonrefundable.
Education Credits: Once a child turns 17 and no longer qualifies for the CTC, the American Opportunity Tax Credit (AOTC) becomes relevant for college expenses — up to $2,500 per student for the first four years of higher education, with 40% ($1,000) refundable.
Stimulus and Advance Payments: Unlike the 2021 tax year when CTC advance payments were distributed monthly, the 2026 CTC is claimed entirely on your annual tax return. There are no advance payment provisions currently in effect.
For families navigating multiple credits, the total benefit can be substantial. Understanding which credits are refundable (CTC/ACTC, EITC, partial AOTC) versus nonrefundable (ODC, Child and Dependent Care Credit) helps with planning — refundable credits remain valuable even when your tax liability is zero, while nonrefundable credits are only useful if you owe taxes.