Child Tax Credit 2026: Everything you need to know

What is the Child Tax Credit?

The Child Tax Credit (CTC) is a tax break for parents to help offset the costs of raising children. Like many tax credits, the CTC is subject to income limits. It’s also partially refundable. That means if you owe less tax than the total credit you qualify for, you may get a portion of it back as a tax refund.

How much is the Child Tax Credit for 2026?

The CTC is worth up to $2,200 per qualifying child for 2026, and up to $1,700 per child is refundable. It starts phasing out at a modified adjusted gross income (MAGI) of $200,000 for single filers ($400,000 for joint filers) by $50 for every $1,000 over the threshold (more on that later).
Quick note: Your MAGI is your income after certain deductions but before you take the standard deduction or itemize.

Who qualifies for the Child Tax Credit?

You may qualify for the Child Tax Credit if…

• Your child is younger than 17 at the end of the tax year.
• Your child lived with you for more than half the year.
• You provided more than half of your child's financial support.
• You and your child both have valid Social Security numbers (SSNs).
• Your MAGI does not exceed the IRS’s limits.

Child Tax Credit eligibility requirements for 2026: Qualifying child 8 tests 

The IRS uses a set of specific tests to determine whether a child is eligible to be a qualifying child. Your child must pass all of them.  

 Age test

Your child must be younger than 17 by the end of the tax year. If your child turns 17 at any point during the tax year, they are no longer eligible.

Relationship test

Your child doesn’t necessarily have to be your biological or adoptive offspring to qualify. But, if they aren’t your son or daughter, they must be your stepchild, foster child, sibling, half sibling, step sibling, niece or nephew, or grandchild.

Residency test

Your child must live with you for more than half the year. Temporary absences for vacation, school, medical care, or military service don’t count against you.

Financial support test 

You must have provided more than half of your child’s financial support during the year. If your child works and pays most of their expenses, they no longer qualify.

Dependent status test 

You must claim your child as a dependent. If you cannot claim your child as a dependent for any reason, they are not eligible.

Citizenship test

Your child must be a U.S. citizen, U.S. national, or U.S. resident alien.  

Social Security number test

 You (if you’re the parent claiming the CTC) and your child must both have valid SSNs.

Income Limits 

Your family’s total MAGI cannot be more than $244,000 ($444,00 if filing jointly).

Social Security number requirement (what changed under the OBBBA)

Under the One Big Beautiful Bill Act (OBBBA), both the child and the parent claiming the CTC must have SSNs. Previously, parents could qualify for the CTC with an Individual Tax Identification Number (ITIN).

Child Tax Credit Changes for 2026

The CTC hasn’t changed much for 2026 from 2025. Maximum amounts, income limits, and most requirements are all the same. The only thing that has changed is that 2026 is the first year that the maximum nonrefundable amount could be adjusted for inflation. However, the 2026 maximum amount has not been adjusted from the 2025 level.

Additional Child Tax Credit: The refundable portion

The Additional Child Tax Credit (ACTC) is the refundable portion of the CTC. That means that money left over from the ACTC after you’ve paid any tax you owe could come back to you as a tax refund, and if you owe $0, you’ll get it all back.

The ACTC is worth up to $1,700 for 2026, and to claim it, you must have at least $2,500 in earned income. You can calculate your ACTC in two ways. The first is the standard method, which is calculated as 15% of your earned income above $2,500, with a maximum of up to $1,700 per child. The alternative method is calculated by subtracting your Earned Income Tax Credit (EITC) from the Social Security and Medicare taxes you’ve paid. You must have at least three children to use the alternative method.

Credit for Other Dependents (ODC) 

The Credit for Other Dependents (ODC) is designed to help cover the costs of care for families with a dependent(s) who does not meet the age and/or Social Security number requirements to be a CTC qualifying child. For example, you could qualify if your child turns 17 during the tax year, your child has an ITIN instead of an SSN, or you are caring for dependent who is not your child, like an aging relative.

It’s worth up to $500 per qualifying dependent for 2026, and unlike the CTC, it is completely nonrefundable. So, even if you owe no or little tax, you will not get money back from the ODC as a refund. To qualify, your dependent must be a U.S. citizen, a resident of Canada or Mexico, U.S. national, or U.S. resident alien. The ODC is subject to the same income phase-out limits as the CTC.

How to calculate your credit

The first step is to calculate your base CTC amount by multiplying the number of qualifying children you have by $2,200. So, for example, if you have two kids who qualify, your base amount would be $4,400.

Next, compare your MAGI to the threshold limits. If it’s at or below $200,000 (or $400,000 for joint filers) your job is done and you qualify for the full credit.

If your MAGI is greater than the threshold limits, your credit is reduced by $50 for every $1,000 over the limit. So, if your MAGI is $210,000 and you have two qualifying children, your credit is reduced by $500 to $3,900.

How to claim the Child Tax Credit 

To claim the CTC, and to calculate how much you’ll get back, complete and file Schedule 8812 (Form 1040), Credits for Qualifying Children and Other Dependents. Also, make sure that you claim your qualifying child(dren) as a dependent on Form 1040 2026 U.S. Individual Income Tax Return, and list their SSN(s).

Which parent claims the credit after a divorce or separation?

Typically, the custodial parent, or the parent the child lives with for more than half the year and covers more than half their financial support, should claim the CTC.

The non-custodial parent can claim the CTC, but only if the custodial parent accepts and signs Form 8332, which the non-custodial parent must attach to their tax return. If both parents attempt to claim the CTC, and neither has attached a signed Form 8332, the IRS will give the credit to the custodial parent.

The CTC is a great tax credit for families, and thanks to the refundable portion, it could make filing worthwhile, even if you’re not required to. But the rules can be complicated. If you have questions, concerns, or need help calculating your credit or refundable portion, please reach out! Your local Tax Pro is here all year and ready to help. Find tax services near you, then walk in or book now.