Child Tax Credit 2026

The Child Tax Credit is one of the most valuable tax benefits for families with children. For tax year 2025, filed in 2026, the credit provides up to $2,000 per qualifying child under age 17, with up to $1,700 of that amount being refundable through the Additional Child Tax Credit. Understanding the eligibility requirements, income limits, and phaseout rules is essential for maximizing this valuable credit on your tax return.

Credit Amount

The Child Tax Credit offers up to $2,000 per qualifying child. Up to $1,700 of this amount is refundable, meaning you receive the credit as a refund even if you have no tax liability. The remaining $300 per child is non-refundable and can only reduce your tax liability to zero. A family with two qualifying children could receive up to $4,000 in total credits, with up to $3,400 potentially refundable.

Qualifying Child Requirements

To qualify for the Child Tax Credit, the child must be under age 17 at the end of the tax year. The child must be your son, daughter, stepchild, foster child, sibling, stepsibling, half-sibling, or a descendant of any of these. The child must have a valid Social Security number, must have lived with you for more than half the year, and must be claimed as your dependent on your tax return.

Income Phaseout Rules

The Child Tax Credit begins to phase out at modified adjusted gross income of $200,000 for single and head of household filers, and $400,000 for married couples filing jointly. The credit is reduced by $50 for each $1,000 of income over these thresholds. For example, a married couple earning $410,000 would see their credit reduced by $500, or $50 multiplied by 10. Families with income significantly above these thresholds may not qualify for the full credit.

Earned Income Requirement

To claim the refundable portion of the Child Tax Credit through the Additional Child Tax Credit, your tax return must include at least $2,500 of earned income. The refundable amount is calculated as 15% of your earned income over $2,500, up to the maximum of $1,700 per child. The non-refundable portion of $300 per child does not require earned income, making it available to families regardless of their earned income level.

Additional Child Tax Credit

The Additional Child Tax Credit is the refundable portion of the Child Tax Credit that you can receive if the credit exceeds your total tax liability. For example, if you owe $1,000 in taxes but qualify for $2,000 in Child Tax Credit, the first $1,000 reduces your tax to zero, and the remaining $1,000 may be refundable up to $1,700 per child through the Additional Child Tax Credit.

Other Dependent Credit

If you have dependents who do not qualify for the Child Tax Credit, such as children age 17 or older, college students up to age 24, or elderly parents you support, you may qualify for the Credit for Other Dependents. This credit is worth up to $500 per qualifying dependent and is non-refundable. It provides modest tax relief for supporting dependents who do not meet the CTC age requirements.

Comparison: 2021 Expanded CTC vs Current Rules

In 2021, the Child Tax Credit was temporarily expanded to $3,600 per child under age 6 and $3,000 per child ages 6 through 17. The credit was fully refundable, and advance monthly payments were sent to families. These enhancements expired after 2021. The current credit of $2,000 per child with a maximum refundable amount of $1,700 reflects the pre-expansion rules that remain in effect for tax year 2025.