Child Tax Credit 2026 [Amount, Income Limits & How to Claim (OBBBA Update)]

By Nick

Published in Finance

March 23, 2026

5 min read

Key Takeaways

The 2026 Child Tax Credit is $2,200 per qualifying child under 17 — increased from $2,000 by the One Big Beautiful Bill Act (OBBBA)
Up to $1,700 per child is refundable as the Additional Child Tax Credit (ACTC)
Phase-out begins at $200,000 AGI (single/head of household) and $400,000 (married filing jointly)
OBBBA made the $2,200 CTC permanent, with inflation adjustments starting in 2027
Both parent and child must have a valid Social Security Number — ITIN holders do not qualify for the CTC
The CTC and EITC can both be claimed in the same year if you qualify for both

2026 Child Tax Credit Amounts
Who Qualifies: The 7 Tests
Income Limits and Phase-Out
The Additional Child Tax Credit (Refundable Portion)
OBBBA Changes: What’s New in 2026
How to Claim the CTC
CTC vs. EITC: Can You Claim Both?
FAQ

2026 Child Tax Credit Amounts

Credit	2026 Amount	2025 Amount	Change
Maximum CTC per qualifying child	$2,200	$2,200	Same (OBBBA set this)
Refundable portion (ACTC) per child	$1,700	$1,700	Unchanged
Minimum earned income to claim ACTC	$2,500	$2,500	Unchanged
Phase-out threshold (single)	$200,000	$200,000	Unchanged
Phase-out threshold (MFJ)	$400,000	$400,000	Unchanged

Source: IRS Revenue Procedure 2025-32; CNBC IRS 2026 tax changes report, October 2025.

The maximum $2,200 child tax credit is in effect for tax years 2025 and 2026, and will be adjusted for inflation starting tax year 2027. The refundable portion of the child tax credit is $1,700 for 2026, unchanged from 2025.

Who Qualifies: The 7 Tests

To claim the CTC for a child, all 7 of these tests must be met:

1. Age Test

The child must be under age 17 at the end of the tax year (December 31, 2026). A child who turns 17 in 2026 does not qualify.

2. Relationship Test

The child must be your:

Son, daughter, stepchild, eligible foster child, or adopted child
Brother, sister, stepbrother, stepsister, half-sibling
Or a descendant of any of the above (grandchild, niece, nephew)

3. Support Test

The child did not provide more than half of their own financial support during the year.

4. Dependent Test

The child must be claimed as your dependent on your federal tax return.

5. Residency Test

The child must have lived with you for more than half the tax year (more than 6 months).

6. Citizenship and SSN Test

The child must be a U.S. citizen, national, or resident alien AND have a valid Social Security Number (not an ITIN). The Trump administration tightened eligibility requirements; now, parents and children must have a Social Security Number to qualify for the credit.

7. Not Filing a Joint Return

The child cannot file a joint return with their own spouse (unless filing solely to claim a refund of withheld taxes).

Income Limits and Phase-Out

The CTC begins to phase out when your modified AGI exceeds:

$200,000 for single filers and heads of household
$400,000 for married filing jointly

Phase-out rate: $50 reduction per $1,000 (or fraction thereof) of income over the threshold.

Phase-Out Examples (Married Filing Jointly)

AGI	Children	Max CTC Before Phase-Out	Reduction	Actual CTC
$400,000	2	$4,400	$0	$4,400
$410,000	2	$4,400	$500	$3,900
$420,000	2	$4,400	$1,000	$3,400
$488,000	2	$4,400	$4,400	$0

For a family with 2 children filing jointly, the CTC phases out completely at $488,000 AGI ($400K + $44,000 ÷ $50 × $1,000 = $488,000).

The Additional Child Tax Credit (ACTC): The Refundable Portion

If your CTC exceeds your federal income tax liability, you may still receive up to $1,700 per qualifying child as a cash refund through the Additional Child Tax Credit.

ACTC Calculation

The ACTC is the lesser of:

Your unclaimed CTC (the portion exceeding your tax liability), OR
15% of your earned income above $2,500

Example:

Family: 2 children, married filing jointly
Earned income: $32,000
Maximum CTC: $4,400 (2 × $2,200)
Federal tax liability: $800
Unclaimed CTC after reducing tax to zero: $3,600
ACTC (15% of $32,000 − $2,500 = $4,425): minimum of $3,600 or $4,425 → $3,600
But capped at $3,400 ($1,700 × 2 children)
ACTC refund: $3,400

The maximum CTC allowed for a family with three children in 2026 is $6,600 (three times $2,200). But the refundable portion for a family with three children cannot exceed $5,100 because the cap on the refundable portion is $1,700 per child.

OBBBA Changes: What’s New in 2026

The One Big Beautiful Bill Act (signed July 4, 2025) made several changes affecting the CTC:

Increased the maximum CTC from $2,000 to $2,200 starting in 2025
Made the increased amount permanent (previously it was set to expire)
Indexed the $2,200 for inflation starting in 2027
Did NOT expand refundability — low-income families still face the $2,500 earned income floor and $1,700 per-child refundable cap

While middle- and upper-income families with children will receive a larger CTC by a few hundred dollars on average, the lowest-income families will not see their CTC change.

How to Claim the CTC

Step 1: Complete your federal Form 1040

Step 2: List your qualifying children and their SSNs on your return

Step 3: Complete Schedule 8812 (Credits for Qualifying Children and Other Dependents) — this calculates both the CTC and ACTC

Step 4: If eligible for the ACTC refund, it will be part of your overall refund

Important timing: If you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), the IRS cannot issue these refunds before mid-February. Early filers with direct deposit typically receive refunds including ACTC by late February or early March.

Free filing: Use IRS Free File (income under $84,000), IRS Direct File, or VITA sites. See How to File Taxes Free in 2026.

CTC vs. EITC: Can You Claim Both?

Yes — these are separate credits with separate calculations. You can claim both in the same tax year if you qualify for both.

Credit	Max Amount	Refundable?	Based On
Child Tax Credit	$2,200/child	Up to $1,700/child	Dependent children + income
EITC (3 children)	$8,231	Fully refundable	Earned income + family size

For a family of four earning $35,000, claiming both credits can result in a refund far exceeding taxes withheld. See EITC 2026 Guide for eligibility rules.

FAQ

My child turns 17 in December 2026. Do they still qualify?

No. The age test requires the child to be under 17 at year-end (December 31, 2026). A child who turns 17 at any point in 2026 does not qualify for the CTC that year. They may qualify for the $500 non-refundable Other Dependents Credit instead.

I’m divorced. Who claims the CTC?

Generally, the custodial parent (the one the child lives with more than half the year) claims the CTC. The custodial parent can sign Form 8332 to release the CTC to the non-custodial parent, but the ACTC cannot be released — only the non-refundable portion.

My child was born in December 2026. Do they qualify for the full year’s credit?

Yes. As long as the child was born at any point during 2026 and meets all the other tests, they qualify for the full CTC for the year.

Can grandparents claim the CTC?

Yes — if a grandparent is the primary caregiver with whom the grandchild lives more than half the year, and can claim the child as a dependent, they can claim the CTC. The child must have an SSN.

What if I can’t get my child’s father to give me the SSN?

Apply for a new SSN for your child at the Social Security Administration — call 1-800-772-1213. Every child is entitled to their own SSN regardless of custody situations.