The child tax credit (CTC) directly reduces your tax bill dollar for dollar, making it one of the most valuable credits for families. For tax year 2026, the credit is $2,000 per qualifying child, with a refundable portion that can generate a refund even if you owe no income tax.
| Amount | |
|---|---|
| Credit per qualifying child (under 17) | $2,000 |
| Refundable portion (Additional CTC) | Up to $1,700 per child |
| Minimum earned income to get ACTC | $2,500 |
| Phaseout starts — single / HOH / MFS | $200,000 MAGI |
| Phaseout starts — married filing jointly | $400,000 MAGI |
| Phaseout rate | $50 per $1,000 over threshold |
| Credit for Other Dependents (age 17+) | $500 non-refundable |
Who qualifies as a qualifying child
To claim the $2,000 credit, each child must meet all of these tests:
- Age: under 17 at the end of the tax year (a child who turns 17 during 2026 does not qualify)
- Relationship: your son, daughter, stepchild, foster child, sibling, or a descendant of any of these
- Residency: lived with you for more than half the year
- Support: did not provide more than half of their own support
- Dependency: you claim the child as a dependent on your return
- Social Security number: must have a valid SSN issued before the due date of your return
The SSN requirement is firm. A child with an Individual Taxpayer Identification Number (ITIN) instead of an SSN does not qualify for the $2,000 credit, though they may qualify for the $500 credit for other dependents.
Refundable vs. non-refundable portions
The $2,000 CTC is partially refundable through the Additional Child Tax Credit (ACTC). Here’s how they interact:
- The CTC first offsets your income tax liability dollar for dollar
- If the credit exceeds your tax liability, up to $1,700 of the unused credit becomes the ACTC and is paid to you as a refund
- The ACTC is calculated on Schedule 8812
This means a family with two qualifying children has a potential credit of $4,000. If their tax bill is $1,500, the credit wipes it out and they can receive up to $3,400 in refunds through the ACTC, subject to the income floors below.
To receive the refundable portion, you generally need at least $2,500 of earned income. The refundable amount is 15% of earned income above $2,500, up to the $1,700 per-child cap.
Income phaseout
The $2,000 credit begins phasing out when modified adjusted gross income (MAGI) exceeds:
- $200,000 for single filers, head of household, and married filing separately
- $400,000 for married filing jointly
The phaseout reduces the credit by $50 for every $1,000 (or fraction thereof) of income above the threshold. A married couple with MAGI of $420,000 would lose $1,000 of credit ($50 x 20), reducing their credit to $1,000 per child if they have one child.
The credit reaches zero for single filers around $240,000 MAGI (for one qualifying child) and for joint filers around $440,000.
Other dependent credit
Children who are 17 or older and other qualifying relatives (such as a parent you support) may qualify for the Credit for Other Dependents, worth $500 per dependent. This credit is non-refundable and subject to the same phaseout thresholds as the CTC.
How to claim it
The child tax credit is claimed on Form 1040, with the refundable portion calculated on Schedule 8812 (Credits for Qualifying Children and Other Dependents). Tax software handles this automatically when you enter each dependent’s information.
You do not file a separate form to claim the CTC. The IRS matches the SSNs you list for your dependents against Social Security Administration records, so make sure names and numbers are entered exactly as they appear on Social Security cards.
Common situations that affect the credit
Divorce and custody: Only one parent can claim each child per year. The parent the child lived with for more nights during the year is typically the custodial parent and gets the credit. The custodial parent can release the claim using Form 8332, allowing the non-custodial parent to claim the child.
Income near the phaseout threshold: If you’re close to $200,000 or $400,000, contributing to a traditional IRA, 401(k), or HSA reduces your AGI and may preserve more of the credit.
Year the child turns 17: The child does not qualify if they turn 17 at any point during the tax year. Plan around this if your child is 16.