Child Tax Credit 2026: Amount, Income Phase-Outs, and How to Claim It

The Child Tax Credit for 2026 is $2,200 per qualifying child under age 17, thanks to the One Big Beautiful Bill Act (OBBBA) that Congress passed in July 2025. That law also made the credit permanent — it was scheduled to fall to $1,000 in 2026 under the old tax law — and locked in income limits of $200,000 for single filers and $400,000 for married couples filing jointly. Here’s how the numbers, phase-outs, and paperwork actually work.

Why the Number Changed

Before OBBBA, the Child Tax Credit was living on borrowed time. The 2017 Tax Cuts and Jobs Act (TCJA) had temporarily doubled the credit from $1,000 to $2,000 per child, but only through the end of 2025. Without new legislation, the credit was set to drop back to $1,000 starting with the 2026 tax year, and the income phase-out thresholds were set to shrink dramatically too.

OBBBA, signed into law on July 4, 2025, stopped that cliff from happening. It raised the base credit to $2,200 per child starting with the 2025 tax year, made that higher amount permanent, and — importantly — indexed it for inflation going forward. That means the $2,200 figure for 2026 could tick up slightly once the IRS publishes its official inflation adjustments for the year. Always check IRS.gov for the confirmed figure before you file, since inflation-adjustment revenue procedures sometimes come out later in the year.

Who Counts as a Qualifying Child

The IRS uses a specific set of tests to decide whether a child qualifies you for the credit. According to IRS.gov, a qualifying child for 2026 must meet all of the following:

• Age: Under 17 at the end of the tax year (so a child who turns 17 anytime in 2026 no longer qualifies for the full CTC — they may still count for the smaller Credit for Other Dependents, described below).
• Relationship: Your son, daughter, stepchild, foster child, sibling, half-sibling, stepsibling, or a descendant of any of these (like a grandchild, niece, or nephew).
• Residency: Lived with you for more than half of 2026, with limited exceptions for temporary absences (school, medical care, military service).
• Support: Did not provide more than half of their own financial support during the year.
• Dependent status: Claimed as a dependent on your tax return.
• Citizenship: A U.S. citizen, U.S. national, or U.S. resident alien.
• Social Security Number: Has an SSN valid for employment, issued before the due date of your tax return (including extensions).

That last requirement matters more than people expect. If a child only has an Individual Taxpayer Identification Number (ITIN) instead of an SSN, they don’t qualify for the Child Tax Credit — though they may still qualify you for the $500 Credit for Other Dependents. OBBBA also tightened the rule on the parents’ side: for a joint return, at least one spouse generally needs a valid SSN to claim the credit for a child with an SSN. If your household includes mixed immigration statuses, this is a detail worth double-checking with a tax professional or at IRS.gov before you file.

Income Phase-Outs for 2026

The credit doesn’t disappear all at once when your income crosses the threshold — it phases out gradually. For every $1,000 (or part of $1,000) your modified adjusted gross income (MAGI) exceeds the threshold, your credit shrinks by $50 per qualifying child, according to IRS guidance on Schedule 8812.

The exact “fully phased out” number moves depending on how many children you’re claiming, since each additional $2,200 credit needs more room to phase down to zero. A married couple with three children, for example, will keep receiving a partial credit at a higher income level than a couple with one child, because there’s more total credit to whittle away.

These thresholds — $200,000 and $400,000 — are fixed dollar amounts under OBBBA, not inflation-adjusted. That’s different from the credit amount itself, which does rise with inflation. Over time, that means more households will gradually cross into phase-out territory even without a raise, simply because the threshold stays put while wages rise. This is the same design TCJA used from 2018 through 2025.

The Refundable Part: Additional Child Tax Credit

Not every family owes enough federal income tax to use the full $2,200 credit. That’s where the Additional Child Tax Credit (ACTC) comes in — it’s the refundable portion of the CTC, meaning you can receive it as a refund even if you owe little or no tax.

For 2026, the refundable portion is capped at $1,700 per child, though this number is also indexed for inflation and has stayed at $1,700 for the past couple of tax years, according to IRS Schedule 8812 instructions. To claim it, you generally need at least $2,500 in earned income; the refundable amount is calculated as 15% of your earned income above that $2,500 floor, up to the per-child cap.

In practice, this means:

• If your CTC exceeds your tax liability, you may get back up to $1,700 per child as a refund, even with zero tax owed.
• Families with very low earned income (under $2,500) generally can’t claim the refundable portion at all, since the 15% calculation starts from zero.
• Families with three or more qualifying children may use an alternate calculation involving Social Security and Medicare taxes withheld, which can sometimes produce a larger refundable amount. Schedule 8812 walks through both calculations and has you use whichever gives you more.

How to Claim the Credit

The Child Tax Credit isn’t automatic — you claim it every year when you file your federal tax return, using these steps:

1. File Form 1040 (or 1040-SR if you’re a senior) for the 2026 tax year, which you’ll file in early 2027.
2. Complete Schedule 8812, “Credits for Qualifying Children and Other Dependents.” This form walks you through the phase-out calculation and determines how much of your credit is refundable.
3. List each qualifying child with their name and Social Security Number exactly as it appears on their Social Security card. A mismatch is one of the most common reasons the IRS delays a return.
4. Choose your filing status carefully. Head of Household status has a lower phase-out threshold than Married Filing Jointly but a higher standard deduction than Single — worth reviewing if your household situation changed during the year (divorce, new dependent, etc.).
5. File electronically if possible. IRS e-file with direct deposit is the fastest way to receive any refundable portion, typically within 21 days, according to IRS.gov, though returns claiming the ACTC may see a slightly longer review under the PATH Act, which requires the IRS to hold refunds involving this credit until at least mid-February.

There’s no separate application for the Child Tax Credit — you don’t sign up ahead of time or get pre-approved. It’s calculated fresh on your return each year based on your dependents, income, and filing status.

Don’t Forget the Credit for Other Dependents

If you have a dependent who doesn’t meet the age or SSN requirements for the full Child Tax Credit — a 17-year-old, a college-age child you still support, an elderly parent living with you, or a dependent with an ITIN instead of an SSN — you may still qualify for the Credit for Other Dependents (ODC). This is a nonrefundable credit worth up to $500 per dependent, and it uses the same income phase-out rules and the same Schedule 8812 form as the CTC.

Quick Comparison: Then vs. Now

FAQ

Do I need to apply separately for the Child Tax Credit?

No. There’s no standalone application. You claim it when you file your federal income tax return by completing Schedule 8812 alongside Form 1040. Make sure each qualifying child has a valid Social Security Number before you file, since that’s required for the credit.

What if my income is right at the phase-out threshold?

The credit reduces gradually, not all at once. For every $1,000 your income exceeds $200,000 (single) or $400,000 (married filing jointly), your total credit drops by $50 per child. Schedule 8812 includes a worksheet to calculate your exact reduced amount, so it’s worth running the numbers rather than assuming you’re excluded entirely.

Can I get the Child Tax Credit if I owe no federal income tax?

Possibly, through the refundable Additional Child Tax Credit, worth up to $1,700 per child for 2026. You generally need at least $2,500 in earned income to qualify for any refundable amount, and the exact amount is calculated as 15% of earned income above that floor, up to the per-child cap.

Sources

• IRS.gov, Child Tax Credit: https://www.irs.gov/credits-deductions/individuals/child-tax-credit
• IRS, About Schedule 8812 (Form 1040): https://www.irs.gov/forms-pubs/about-schedule-8812-form-1040
• IRS, Publication 972, Child Tax Credit and Credit for Other Dependents: https://www.irs.gov/forms-pubs/about-publication-972
• Congress.gov, H.R.1 (One Big Beautiful Bill Act, 119th Congress): https://www.congress.gov
• IRS Newsroom: https://www.irs.gov/newsroom

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