Child Tax Credit for 2026

The Child Tax Credit (CTC) for 2026 provides up to $2,500 per qualifying child under age 17, an increase from the pre-OBBBA amount. This credit directly reduces your federal tax bill dollar-for-dollar, making it one of the most valuable provisions for families. Children must have a valid Social Security number and be claimed as your dependent on your return. Additionally, a $500 credit is available for other dependents aged 17 and older, including college students and qualifying relatives.

The CTC begins to phase out at $200,000 of AGI for single filers and $400,000 for married filing jointly. For every $1,000 of income above these thresholds, the credit is reduced by $50. Once the credit is fully phased out, it reaches zero. The refundable portion — known as the Additional Child Tax Credit (ACTC) — allows families with little or no tax liability to receive up to $1,900 per child as a refund, even if they owe no federal income tax.

To claim the refundable ACTC, you must have earned income above $2,500. The refundable amount is calculated as 15% of earned income above $2,500, capped at $1,900 per child. Families should file even if their income is below the filing threshold to claim this refund.

Example: A married couple earning $85,000 with three children under 17 qualifies for $7,500 in Child Tax Credits. If their federal tax liability is $4,000, they receive $4,000 as a non-refundable credit and up to $3,500 as a refundable ACTC (capped at $1,900 per child, so $5,700 max refundable).