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The child tax credit for 2026 is worth up to $2,200 per qualifying child under 17, and up to $1,700 of that is refundable. Those are the same amounts that applied to 2025 returns, after the One Big Beautiful Bill Act (OBBBA) of July 2025 raised the credit from $2,000 and made it permanent. Without that law, the credit would have dropped to $1,000 per child in 2026.
The OBBBA also indexed the full credit for inflation and added a Social Security number requirement for the parent. Both matter for families filing 2025 returns this year and planning for 2026.
| Item | Tax year 2024 | Tax year 2025 | Tax year 2026 |
|---|---|---|---|
| Maximum credit per qualifying child | $2,000 | $2,200 | $2,200 |
| Maximum refundable portion (ACTC) | $1,700 | $1,700 | $1,700 |
| Earned income floor for refund | $2,500 | $2,500 | $2,500 |
| Phase-out start (joint / all others) | $400,000 / $200,000 | $400,000 / $200,000 | $400,000 / $200,000 |
| Credit for other dependents | $500 | $500 | $500 |
| SSN required for the taxpayer | No | Yes (one spouse if joint) | Yes (one spouse if joint) |
The 2026 amounts come from Rev. Proc. 2025-32, which states that the maximum credit is $2,200 and the refundable amount is $1,700 for taxable years beginning in 2026. The statute sets $2,200 for 2025 and adjusts it for inflation afterward, so the figure can rise in later years; the 2026 adjustment left it unchanged.
Under the 2017 Tax Cuts and Jobs Act, the $2,000 credit, the $1,400 refundable base and the $200,000 / $400,000 phase-out thresholds were all temporary and set to expire after 2025. The OBBBA made the higher credit permanent, raised it to $2,200 starting with 2025, and kept the higher phase-out thresholds permanently. The refundable cap of $1,700 continues to be indexed.
The other change is the identification rule. To claim the credit, the child must have a Social Security number valid for employment, and now so must the taxpayer (or at least one spouse on a joint return). The SSN must be issued before the return's due date, including extensions. The IRS sets out these rules on its child tax credit page.
A parent filing with an ITIN, married to another ITIN filer, cannot claim the child tax credit even when the child is a citizen with an SSN. The family may still claim the $500 credit for other dependents for that child. Our guide to Form W-7 and ITIN applications covers when an ITIN is the right number to have.
A child qualifies for the credit if all of the following are true for the tax year:
A child born at any point during the year counts for the full year, so a baby born on December 31, 2026 produces the full $2,200 on the 2026 return.
Generally the custodial parent, meaning the one the child lived with for more nights, claims the credit. The custodial parent can release the claim to the other parent on Form 8332, which the noncustodial parent attaches to the return. Head of household status and the earned income tax credit stay with the custodial parent regardless of the release, which is a frequent source of IRS notices when parents split benefits informally.
The credit first reduces income tax. If the credit is larger than your tax, the leftover can be refunded as the additional child tax credit (ACTC), up to $1,700 per child. The refundable amount is limited to 15% of earned income above $2,500. Families with three or more children can use an alternative calculation based on Social Security and Medicare taxes paid if that gives a larger result.
A single parent with two children earns $12,000 in wages in 2026 and owes no income tax after the standard deduction.
The refund from the ACTC is $1,425, the lowest of the three limits. As earnings rise, the refund grows by 15 cents per dollar until it reaches the cap.
A head of household with two children earns $30,000 in 2026. The 2026 head of household standard deduction is $24,150, so taxable income is $5,850 and tax at 10% is $585.
The family's total child tax credit benefit is $3,985: $585 of tax eliminated and a $3,400 refund. The earned income tax credit would be computed separately on top of this.
The credit drops by $50 for every $1,000, or part of $1,000, that modified adjusted gross income exceeds $400,000 on a joint return or $200,000 for every other filing status. These thresholds are not indexed, so inflation slowly pulls more families into the phase-out.
| Joint filers, two children | MAGI | Excess over $400,000 | Reduction | Credit allowed |
|---|---|---|---|---|
| Below threshold | $395,000 | $0 | $0 | $4,400 |
| Slightly above | $410,500 | $10,500 (rounds up to 11 steps) | $550 | $3,850 |
| Well above | $430,000 | $30,000 | $1,500 | $2,900 |
| Fully phased out | $488,000 | $88,000 | $4,400 | $0 |
Pre-tax 401(k) deferrals, HSA contributions and other above-the-line items reduce MAGI, which can preserve part of the credit for families near the threshold. Our walkthrough of how to fill out the HSA tax form shows where those contributions appear. Families with business income should also check how quarterly estimated tax payments interact with a smaller credit in a high-earning year.
The two credits are often confused because both reward families with children, and many households claim both on the same return.
| Child tax credit | Earned income tax credit | |
|---|---|---|
| Purpose | Offset the cost of raising children | Supplement wages for low and moderate earners |
| Earned income needed | Only for the refundable portion | Yes, always |
| 2026 maximum | $2,200 per child | $8,231 with three or more children |
| Income range | Phase-out starts at $200,000 / $400,000 | Fully phased out around $63,000 to $70,000 with three children |
| Child age limit | Under 17 | Under 19, or under 24 if a full-time student |
| Investment income limit | None | $12,200 in 2026 |
The 2026 EITC figures are also from Rev. Proc. 2025-32; the 2025 maximum was $8,046. The IRS earned income tax credit page has the eligibility assistant.
The child tax credit sits alongside several newer family benefits. The IRS summary of OBBBA provisions lists the main ones:
Parents who earn tips or overtime pay should also look at the new deductions for those wages, which reduce taxable income and can change how much of the child tax credit is used against tax versus refunded. Our explainer on no tax on tips and overtime walks through the 2026 limits. In the worked example above, a lower tax bill would shift more of the credit into the refundable column, up to the $1,700 per child cap.
Teenagers who age out of the child tax credit at 17 can still generate the $500 credit for other dependents, and college students may qualify the family for the American Opportunity Tax Credit. If a child has investment income, check whether the kiddie tax on Form 8615 applies to the child's own return.
Claim the credit on Form 1040 with Schedule 8812, which calculates both the nonrefundable credit and the ACTC. The credit is available whether you take the standard deduction or itemize; our guide to Form 1040 with itemized deductions covers the second route.
If you file early in the season and a child's SSN application is still pending, consider filing an extension rather than filing without the credit. The SSN only has to be issued by the due date including extensions, and an amended return to add the credit later delays the refund further.
Keep records showing the child's age, relationship and residency, such as birth certificates, school or medical records listing your address, and any Form 8332. The IRS may ask for them if the claim is questioned.
By law, the IRS cannot issue refunds that include the ACTC or EITC before mid-February, even for returns filed in January. The IRS refund direct deposit schedule shows typical timing after that hold lifts.
Yes. The OBBBA raised the maximum credit to $2,200 per qualifying child starting with tax year 2025, so the returns filed in 2026 use $2,200. The refundable portion for 2025 remained $1,700.
It can. The OBBBA indexes the $2,200 maximum for inflation for years after 2025, and the IRS publishes each year's figure in its annual inflation revenue procedure, usually in October or November. The phase-out thresholds are fixed and do not adjust.
You cannot receive a refund without earned income above $2,500, because the refundable part is 15% of earnings above that floor. With no income tax owed and no earnings, the credit has nothing to offset.
Yes. A child born during the year is treated as living with you for the full year, provided the child lived with you for the time they were alive and received an SSN by the return due date. The full $2,200 applies.
No. Advance monthly payments existed only for 2021 under the American Rescue Plan. In 2026 the credit is claimed once a year on the tax return.
Family credits now interact with new deductions, payroll benefits and SSN rules that trip up a lot of returns. Madras Accountancy prepares and reviews individual returns for CPA firms and their clients, including Schedule 8812 calculations and dependency documentation. To discuss your filing season needs, contact our team.
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