Guides
The Child Tax Credit: 2026 Rules, Amounts, and Phaseouts
The Child Tax Credit is worth up to $2,200 per qualifying child under age 17 for the 2026 tax year, with up to $1,700 of that refundable through the Additional Child Tax Credit. The credit begins to phase out at $200,000 of modified adjusted gross income ($400,000 for married filing jointly). Each qualifying child needs a Social Security number valid for employment.
The One Big Beautiful Bill Act (OBBBA), signed in July 2025, made the $2,000 base credit permanent and raised the maximum to $2,200 for 2025 and 2026, indexed to inflation after that. This page covers the 2026 amounts, who qualifies, how the phaseout math works, the SSN rules, and how the credit differs from the $500 Credit for Other Dependents.
How much is the Child Tax Credit in 2026?
The maximum Child Tax Credit for 2026 is $2,200 per qualifying child. Up to $1,700 of that per child is refundable, meaning it can generate a refund even if you owe no tax. The remaining $500 is nonrefundable and can only reduce tax you actually owe.
The $2,200 figure reflects the OBBBA increase from the prior $2,000 base. Before OBBBA, the $2,000 amount was scheduled to drop back to $1,000 after 2025 when the Tax Cuts and Jobs Act provisions expired. OBBBA removed that cliff, set the base at $2,200 for 2026, and indexed future amounts to inflation.
| Feature | 2026 amount |
|---|---|
| Maximum credit per qualifying child | $2,200 |
| Maximum refundable portion (ACTC) per child | $1,700 |
| Nonrefundable portion per child | $500 |
| Earned income floor for refundable portion | $2,500 |
| Refundable calculation rate | 15% of earned income above $2,500 |
| Phaseout threshold (single, HoH, MFS) | $200,000 |
| Phaseout threshold (married filing jointly) | $400,000 |
| Credit for Other Dependents (per dependent) | $500 |
Who qualifies as a qualifying child?
A qualifying child for the Child Tax Credit must meet seven tests for the 2026 tax year. The child must be under 17 at the end of the year, related to you, claimed as your dependent, a U.S. citizen or resident, and must have lived with you and not paid for most of their own support. Each test must be met.
The IRS applies these tests together. Failing any one generally moves the child from the $2,200 credit to the $500 Credit for Other Dependents, if the child qualifies as a dependent at all.
- Age: The child must be under 17 (16 or younger) at the end of 2026. A child who turns 17 during the year does not qualify for the CTC.
- Relationship: The child must be your son, daughter, stepchild, foster child, sibling, half-sibling, step-sibling, or a descendant of any of these (for example, a grandchild, niece, or nephew).
- Support: The child cannot have provided more than half of their own support during the year.
- Dependent: You must claim the child as a dependent on your return.
- Filing status: The child cannot file a joint return for the year, except to claim a refund of withheld or estimated tax.
- Residency: The child must have lived with you for more than half the year, with limited exceptions for temporary absences, birth or death during the year, and certain divorced or separated parent situations.
- Citizenship: The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
What are the SSN requirements?
Each qualifying child must have a Social Security number valid for employment, issued before the due date of your return including extensions. Under OBBBA, the person claiming the credit (or at least one spouse on a joint return) must also have a work-eligible SSN. An Individual Taxpayer Identification Number (ITIN) does not satisfy either requirement.
This tightened the rule. In earlier years the SSN test applied to the child. OBBBA extended it so the filer must also hold a work-authorized SSN. If a parent files with an ITIN, the household is generally ineligible for the $2,200 credit even when the child has a valid SSN. Such families may still claim the $500 Credit for Other Dependents.
A child with only an ITIN can never qualify for the $2,200 Child Tax Credit, though the child may qualify for the $500 credit if the dependent tests are met.
How does the phaseout work?
The Child Tax Credit begins to phase out once modified adjusted gross income exceeds $200,000 ($400,000 for married filing jointly). Above the threshold, the total credit drops by $50 for each $1,000, or fraction of $1,000, of income over the limit. The same thresholds apply to the $500 Credit for Other Dependents.
Modified AGI for this purpose is your adjusted gross income with certain foreign-earned and territory exclusions added back. For most filers, MAGI equals AGI. The thresholds are not indexed to inflation, so they stay at $200,000 and $400,000 each year.
Worked example: a married couple filing jointly with two qualifying children and MAGI of $430,000. Income over the $400,000 threshold is $30,000, which is 30 units of $1,000. The reduction is 30 times $50, or $1,500. Their combined credit of $4,400 (two children times $2,200) is reduced to $2,900.
| MAGI (MFJ, 2 children) | Amount over $400,000 | Reduction | Credit after phaseout |
|---|---|---|---|
| $400,000 | $0 | $0 | $4,400 |
| $430,000 | $30,000 | $1,500 | $2,900 |
| $475,000 | $75,000 | $3,750 | $650 |
| $488,000 | $88,000 | $4,400 | $0 |
How is the refundable portion (ACTC) calculated?
The refundable portion, called the Additional Child Tax Credit, is capped at $1,700 per child for 2026. It equals 15% of earned income above $2,500, up to that per-child cap. Families with little or no tax liability can receive this amount as a refund, but only to the extent their earnings support it.
The earnings test limits low-income households. A family needs earned income of about $13,833 to reach the full $1,700 refundable amount for one child, because 15% of ($13,833 minus $2,500) is roughly $1,700. Families earning below $2,500 receive no refundable credit.
This structure is why the OBBBA increase to $2,200 delivered most of its benefit to middle- and upper-income families. The refundable cap and the $2,500 floor were not expanded, so the lowest-income households saw little or no change from the higher maximum.
Child Tax Credit vs Credit for Other Dependents
The Credit for Other Dependents (ODC) is a nonrefundable $500 credit for dependents who do not meet the Child Tax Credit tests. It covers children 17 and older, qualifying relatives such as elderly parents, and dependents with an ITIN or ATIN. It phases out at the same $200,000 and $400,000 thresholds.
The main split is age and refundability. A dependent under 17 with a work-eligible SSN generally qualifies for the $2,200 credit; nearly everyone else who is a valid dependent qualifies for the $500 credit instead. The ODC is never refundable, so it can only offset tax you owe.
| Feature | Child Tax Credit | Credit for Other Dependents |
|---|---|---|
| Maximum per dependent | $2,200 | $500 |
| Refundable | Yes, up to $1,700 | No |
| Child age | Under 17 | 17 or older, or non-child dependents |
| Dependent ID accepted | SSN valid for employment | SSN, ITIN, or ATIN |
| Phaseout thresholds | $200,000 / $400,000 | $200,000 / $400,000 |
You claim both credits on Schedule 8812, filed with your Form 1040. The schedule also calculates the refundable Additional Child Tax Credit and applies the phaseout. See our guide to Form 1040 and the individual income tax return for how the credit flows onto the return.
How to claim the Child Tax Credit
You claim the Child Tax Credit by listing each qualifying child as a dependent on Form 1040 and completing Schedule 8812. The schedule computes the nonrefundable credit, applies the income phaseout, and calculates any refundable Additional Child Tax Credit based on your earned income. File the SSN for each child exactly as shown on the card.
Confirm each child has a work-eligible SSN issued before your filing deadline, including extensions. If you file with Form 4868 for an extension, the extended due date applies to the SSN timing. Keep records showing residency and support, since these are common points the IRS reviews.
Frequently asked questions
How much is the Child Tax Credit for 2026?
The maximum Child Tax Credit for 2026 is $2,200 per qualifying child under age 17, of which up to $1,700 per child is refundable through the Additional Child Tax Credit. OBBBA set the $2,200 amount for 2025 and 2026 and indexes it to inflation afterward. The credit phases out above $200,000 of income ($400,000 for joint filers).
At what income does the Child Tax Credit phase out?
The Child Tax Credit starts phasing out when modified adjusted gross income exceeds $200,000 for single, head of household, and married filing separately filers, or $400,000 for married filing jointly. The credit falls by $50 for every $1,000, or fraction of $1,000, above the threshold. These limits are not indexed and stay fixed each year.
Can I claim the Child Tax Credit if my child has an ITIN?
No. For 2026, each qualifying child must have a Social Security number valid for employment, issued before the return due date including extensions. A child with only an ITIN cannot qualify for the $2,200 Child Tax Credit. That child may still qualify for the $500 Credit for Other Dependents if the dependent tests are met.
What is the difference between the Child Tax Credit and the Credit for Other Dependents?
The Child Tax Credit is worth up to $2,200 per child under 17 with a work-eligible SSN, and up to $1,700 is refundable. The Credit for Other Dependents is a flat $500 nonrefundable credit for dependents who do not qualify, such as children 17 or older and dependent relatives. Both phase out at $200,000 and $400,000.
How much of the Child Tax Credit is refundable in 2026?
Up to $1,700 per qualifying child is refundable in 2026 through the Additional Child Tax Credit. The refundable amount equals 15% of earned income above $2,500, capped at $1,700 per child. Families earning below $2,500 receive no refundable credit, and it takes roughly $13,833 of earnings to reach the full $1,700 for one child.
Did OBBBA change the Child Tax Credit?
Yes. The One Big Beautiful Bill Act, signed in July 2025, made the credit permanent, raised the maximum from $2,000 to $2,200 for 2025 and 2026, and indexed it to inflation. It also required the filer (or one spouse on a joint return) to have a work-eligible SSN, not just an ITIN. It did not raise the refundable cap or lower the $2,500 earnings floor.
Which form do I use to claim the Child Tax Credit?
You claim the Child Tax Credit and the Credit for Other Dependents on Schedule 8812, filed with Form 1040. Schedule 8812 calculates the nonrefundable credit, applies the income phaseout, and computes the refundable Additional Child Tax Credit from your earned income. List each child as a dependent on Form 1040 with a matching Social Security number.
The Child Tax Credit is one of the largest credits in the federal system. For how it compares to other family and income credits, see our federal tax credits database and our data profile of the Earned Income Tax Credit, which many CTC-eligible families also claim. Filing status can affect the phaseout, so review the head of household rules if you are unmarried with a child.
Reviewed by The Ledgerism Editorial Team. Last reviewed: July 2026.