The IRS Child Tax Credit has been part of the tax code since 1997, giving families with qualifying children a dollar-for-dollar reduction in what they owe. The rules have evolved significantly over the years, and 2026 brings the latest update. Here’s what you need to know.
What Is the Child Tax Credit?
The Child Tax Credit (CTC) allows taxpayers to claim up to $2,200 for each qualifying child under age 17 who is a U.S. citizen, national, or resident and has a Social Security number. It works as a direct reduction of your tax bill — not just a deduction from taxable income — making it one of the most valuable breaks available to families.
What Changed for 2026?
The biggest recent shift came from the One Big Beautiful Bill Act (OBBBA), signed in 2025. The OBBBA made permanent most of the Tax Cuts and Jobs Act individual tax provisions, increased the maximum CTC from $2,000 to $2,200 per qualifying child beginning in 2025, and introduced an inflation adjustment going forward. The refundable portion of the credit remains at $1,700 for 2026.
One notable new requirement: new rules tighten eligibility by requiring that both the parent (and spouse, if filing jointly) and the child have a Social Security number to claim the credit — a shift that may affect some immigrant and mixed-status families. Kiplinger
How Much Is the Child Tax Credit in 2026?
The credit is reduced by 5% of adjusted gross income over $200,000 for single parents ($400,000 for married couples filing jointly).
If the credit exceeds the taxes you owe, you may still get money back. If you have little or no federal income tax liability, you may qualify for the Additional Child Tax Credit (ACTC) — the refundable portion — worth up to $1,700 per qualifying child, provided you have earned income of at least $2,500.
Who Qualifies?
To claim the Child Tax Credit, your child must meet several requirements:
- The child must be under age 17, a U.S. citizen, national, or resident, and have a Social Security number.
- The child must not have provided more than half of their own financial support during the tax year.
- Qualifying children can include a birth child, stepchild, adopted child, foster child, sibling, or descendant of any of these.
- The taxpayer must not have filed a joint return with their spouse, or have filed it only to claim a refund of withheld income tax.
Refundable vs. Non-Refundable: What’s the Difference?
The CTC has two components. The non-refundable portion reduces your tax bill down to zero, but you won’t receive any unused amount as a refund. The refundable portion — capped at $1,700 per child — can be returned to you even if you owe no federal income tax, though it is limited to 15% of earned income above $2,500.
For example, a family with three children can claim a maximum of $6,600 total, but the refundable portion for a family with three children cannot exceed $5,100, since the cap is $1,700 per child.
What About the 2021 Expanded Credit?
The 2021 American Rescue Plan temporarily boosted the credit to $3,600 per child under age 6 and $3,000 for children ages 6–17, and made it fully refundable with advance monthly payments. That expansion was not made permanent. The OBBBA increased the maximum CTC from $2,000 per child to $2,200 per child, but the lowest-income families who benefited most from the 2021 expansion did not see their refundable portion increase beyond $1,700.
Will the Credit Change Again?
Starting in 2026, the maximum credit is indexed for inflation and will be adjusted annually going forward — so unlike in prior years, families won’t need to worry about sudden cliffs or expirations under current law.
How to Claim It
Claim the CTC on your Form 1040 and attach Schedule 8812 (Credits for Qualifying Children and Other Dependents). If you’re unsure whether you qualify, the IRS has an Interactive Tax Assistant on its website to walk you through eligibility. You may also want to consult a tax professional to make sure you’re capturing every credit available to your family
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