How much is the Child Tax Credit for 2026?

For the 2026 tax year, the Child Tax Credit is $2,000 per qualifying child under age 17 at the end of the year. Up to $1,700 of that amount is refundable through the Additional Child Tax Credit, meaning you can receive it as a refund even if you owe no federal income tax. The non-refundable portion reduces your tax bill dollar for dollar. Credit amounts are periodically adjusted by Congress and the IRS.

Who qualifies as a qualifying child?

The child must be under 17 at the end of the tax year, a U.S. citizen or resident, claimed as a dependent on your return, and have lived with you for more than half the year. The child must also have a valid Social Security Number issued before the due date of your return. Qualifying children include biological, adopted, step, foster, and sibling relationships, as well as descendants of those relations (grandchildren, nieces, nephews).

At what income does the credit start phasing out?

The phase-out begins at $200,000 Modified Adjusted Gross Income (MAGI) for single, head of household, or married filing separately filers, and at $400,000 MAGI for married filing jointly. For every $1,000 (or fraction) over the threshold, your total CTC and Credit for Other Dependents is reduced by $50. A family with two kids earning $430,000 MFJ would lose $1,500 of the $4,000 credit.

What's the Credit for Other Dependents?

The Credit for Other Dependents (ODC) is a non-refundable $500 credit for dependents who don't qualify for the CTC — typically children 17 or older, full-time college students under 24, aging parents you support, or other qualifying relatives. It's claimed on the same line of Form 1040 as the CTC and is subject to the same income phase-out rules. The ODC cannot exceed your remaining tax liability.

Can I get the refundable portion if I have no earned income?

Generally no — the Additional Child Tax Credit (refundable portion) requires at least $2,500 in earned income. The refundable amount is calculated as 15% of earned income above $2,500, capped at $1,700 per child. So a parent with $10,000 of earned income could receive up to $1,125 refundable per child ($10,000 − $2,500 = $7,500 × 15%). Parents with zero earned income usually get zero refundable CTC.

Child Tax Credit Calculator | 2026 CTC Estimator

Understand what the Child Tax Credit actually returns to you

The Child Tax Credit (CTC) is one of the most valuable family tax breaks in the U.S. code, but families routinely misread it. It's not a guaranteed $2,000 check per child — it's a conditional credit with a non-refundable piece that only helps if you owe tax, plus a refundable piece capped at $1,700 per child for 2026 and gated by earned income. Our calculator models all three gates at once: your tax liability, income phase-out, and the earned-income floor for the refundable portion.

The two layers: non-refundable CTC and refundable ACTC

The first $2,000 per child is a tax credit that reduces federal income tax owed, dollar for dollar. If your tax bill before credits is $5,000 and you have two kids, the non-refundable CTC zeroes your bill and leaves $1,000 of unused credit. That leftover can then convert to the Additional Child Tax Credit (ACTC) — the refundable piece — up to $1,700 per child. ACTC comes to you as a refund check even if you owe no tax.

Earned income floor for the refundable portion

ACTC isn't available to families with zero earned income. The refund is calculated as 15% of earned income above $2,500, capped at $1,700 per child. A family earning $20,000 with two kids gets up to 15% × ($20,000 − $2,500) = $2,625, but that's split across two kids at $1,700 max each, and further capped by unused non-refundable credit.

The phase-out wall: $200K single, $400K MFJ

Above the income thresholds, the total CTC plus Credit for Other Dependents is reduced by $50 for every $1,000 (or fraction) of MAGI over the threshold. Phase-out is steep for large families — a MFJ couple with four kids ($8,000 total CTC) is fully phased out at AGI $560,000 ($400K + $160K, since $160K × $50/$1K = $8,000).

Single, HoH, MFS: $200,000 threshold
Married Filing Jointly: $400,000 threshold
Phase-out rate: $50 reduction per $1,000 over
Complete phase-out: threshold + $40K per $2,000 of credit

Strategies to stay under the phase-out

If you're in the phase-out zone, anything that reduces MAGI helps — 401(k) contributions, HSA contributions, traditional IRA contributions (if deductible), and above-the-line adjustments. A $20,000 401(k) contribution that drops MAGI from $420K to $400K at MFJ recovers $1,000 in CTC that would otherwise phase out.

Credit for Other Dependents ($500)

Families supporting kids 17 and older, college students, aging parents, or other qualifying relatives get the $500 non-refundable Credit for Other Dependents. It's not refundable — if you don't owe tax, the credit is lost. It's subject to the same income phase-out as the CTC and is allocated proportionally when phase-out applies.

Qualifying child requirements

Under 17 at end of tax year (16 or younger on Dec 31)
U.S. citizen, national, or resident alien with SSN issued by return due date
Claimed as your dependent
Lived with you more than half the year
Didn't provide more than half their own support
Meets relationship test (biological, adopted, step, foster, sibling, or descendant)

Common CTC mistakes

Parents lose CTC money by: claiming a child turning 17 during the tax year (they age out and only get the $500 ODC), missing the SSN deadline (a child born in December must still get an SSN before you file), forgetting to include Puerto Rico-residing parents who now qualify for the full CTC, and not coordinating with an ex in shared custody situations. Only one parent can claim each child per year — this is usually the custodial parent unless Form 8332 is signed.

State-level child tax credits

Fourteen states offer their own child tax credits on top of the federal CTC. California, Colorado, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oklahoma, Oregon, Vermont, and a few others provide anywhere from $100 to $1,750 per child. Check your state's Department of Revenue for current amounts — some states tie their credit to federal CTC eligibility, others have independent income limits.

Planning around new babies

A baby born any day in the tax year (including Dec 31) qualifies for the full $2,000 credit. There's no proration. This makes late-December births the single most tax-efficient month to have a baby. If you're expecting, budget for a CTC refund bump of $1,700–$2,000 on your first-year-of-parenthood taxes.

Related parenting calculators

Model the full financial picture of family taxes alongside: the 529 college savings calculator for tax-advantaged education savings, the UGMA/UTMA custodial account growth calculator to see how tax treatment differs from 529s, and the maternity leave pay calculator to project take-home during leave. Cost-focused tools like the first-year baby cost calculator and the daycare cost calculator help map the real spending side of raising children.

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