Child Tax Credit 2026: How Much, Who Qualifies, Income Limits

The Child Tax Credit (CTC) is one of the most valuable tax benefits available to families. For 2026, it’s worth up to $2,000 per qualifying child under age 17.

Here’s everything you need to know: amounts, refundability, income phase-outs, and how to claim it.

Child Tax Credit Amounts in 2026

Component	Amount Per Child
Total Child Tax Credit	$2,000
Non-refundable portion	$300
Refundable (ACTC)	Up to $1,700

Refundable vs. non-refundable:

• The non-refundable portion ($300) can reduce your tax bill to $0 but not below
• The Additional Child Tax Credit (ACTC) — up to $1,700 — is refundable, meaning you can receive it as a cash refund even if you owe no federal income tax

Who Qualifies for the Child Tax Credit?

Your child must meet all of these tests:

1. Age: Under 17 at the end of the tax year (must be 16 or younger on December 31, 2026)
2. Relationship: Your child, stepchild, foster child, sibling, half-sibling, or a descendant of any of these
3. Dependent: Must be your claimed dependent on your tax return
4. Residency: Must have lived with you for more than half the year
5. Support: Did not provide more than half of their own support
6. Citizenship: Must be a U.S. citizen, U.S. national, or U.S. resident alien
7. Social Security Number: Must have a valid SSN (ITIN does not qualify for CTC)

Income Phase-Out: When the Credit Reduces

The CTC begins to phase out at higher income levels:

Filing Status	Phase-Out Threshold	Fully Phased Out At
Single / Head of Household	$200,000	~$240,000 (1 child)
Married Filing Jointly	$400,000	~$440,000 (1 child)
Married Filing Separately	$200,000	—

How the phase-out works: The credit reduces by $50 for every $1,000 (or fraction thereof) of income above the threshold.

Example (single filer, 2 children, $215,000 income):

• Income above threshold: $215,000 − $200,000 = $15,000
• Phase-out: $15,000 ÷ $1,000 × $50 = $750 reduction
• CTC available: ($2,000 × 2) − $750 = $3,250 (instead of $4,000)

How to Claim the Child Tax Credit

The credit is calculated on Schedule 8812 (Credits for Qualifying Children and Other Dependents), which is attached to your Form 1040.

Steps:

1. List your qualifying children on Form 1040 (check “qualifying child” box)
2. Form 8812 is automatically generated by tax software
3. The non-refundable credit reduces tax owed; any remaining refundable ACTC flows to your refund

Tax software (TurboTax, H&R Block, FreeTaxUSA) handles this automatically — you just enter your dependent information.

The Additional Child Tax Credit (ACTC): Refundable Portion

To receive the ACTC (the refundable portion), you must have earned income — wages, salaries, tips, or self-employment income. Investment income alone does not qualify.

The ACTC is calculated as 15% of earned income above $2,500, up to $1,700 per child.

Example (1 child, $20,000 earned income, $0 tax owed):

• Earned income above $2,500: $20,000 − $2,500 = $17,500
• ACTC: $17,500 × 15% = $2,625 → but capped at $1,700 per child
• Refund from ACTC: $1,700

Other Credits for Dependents

Children who don’t qualify for the CTC (age 17+ dependents, elderly parents) may qualify for the $500 Credit for Other Dependents — a non-refundable credit with the same income phase-out thresholds.

Child and Dependent Care Credit

If you pay for childcare so you can work, you may also qualify for the Child and Dependent Care Credit (separate from CTC) — up to 35% of $3,000 in care expenses for one child, or $6,000 for two or more children.

These two credits are separate and can both be claimed in the same year.