The 2026 Child Tax Credit Is $2,200 per Child

Who Qualifies for the Child Tax Credit

A qualifying child must be under age 17 at the end of the tax year, related to you as a child, stepchild, foster child, sibling, or a descendant of one of those, and have lived with you for more than half the year. The child also can't provide more than half of their own financial support during the year.

Both the child and the taxpayer claiming the credit must have a Social Security number valid for employment, issued before the tax return's due date. A dependent with only an Individual Taxpayer Identification Number (ITIN) doesn't qualify the household for the full Child Tax Credit, though that dependent may still qualify for the smaller Credit for Other Dependents covered below.

The Income Phase-Out

The credit stays at its full $2,200 per child until your modified adjusted gross income passes $200,000 for a single filer or $400,000 for a married couple filing jointly. Above those thresholds, the credit drops by $50 for every $1,000 your income exceeds the limit, phasing out gradually rather than disappearing all at once.

A married couple earning $420,000, for example, sits $20,000 over the $400,000 threshold. That's 20 increments of $1,000, cutting $1,000 total from the credit per child, so a family with two children in that bracket would see their combined credit fall from $4,400 to $2,400 rather than losing it entirely.

How the Refundable Portion Works

Up to $1,700 per child is refundable through the Additional Child Tax Credit, meaning you can receive it even after your tax bill reaches zero. The refundable amount is calculated as 15% of your earned income above $2,500, capped at $1,700 per qualifying child, so a family with very low earned income may not receive the full refundable amount even with multiple children.

The remaining, non-refundable portion of the credit can only reduce tax you actually owe. A family that owes little to no federal income tax after other deductions may end up relying mostly on the refundable $1,700 piece rather than the full $2,200 credit.

How to Claim the Credit

You claim the Child Tax Credit by completing Schedule 8812 and attaching it to your Form 1040. Most tax software calculates the credit and the phase-out automatically once you enter your dependents and income, and the IRS Free File program offers no-cost guided filing for eligible incomes if you'd rather not pay for software just to claim this credit.

Double-check that each qualifying child's Social Security number on your return matches Social Security Administration records exactly, since a mismatch is one of the more common reasons the IRS delays or denies this credit during processing.

Other Credits for Dependents Worth Knowing

A dependent who doesn't meet the Child Tax Credit's age or relationship rules, like a college-age child or a dependent parent, may still qualify you for the Credit for Other Dependents, a separate, nonrefundable $500 credit per dependent. This credit follows the same income phase-out thresholds as the Child Tax Credit but pays a flat $500 regardless of the dependent's actual expenses.

A completely different credit, the Child and Dependent Care Tax Credit (CDCTC), covers a share of what you pay for daycare, a nanny, or after-school care while you work, and it can be claimed alongside the Child Tax Credit for the same child since the two credits address different costs. Some states also run their own child tax credit on top of the federal one, adding a few hundred dollars more per child depending on where you live and your state's own income limits.

The Custodial Parent Claims the Credit by Default

Only one parent can claim the Child Tax Credit for a given child in a given year, and the IRS's default tie-breaker rule assigns it to the custodial parent, the one the child lived with for more nights during the year. A noncustodial parent can only claim the credit if the custodial parent signs Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, and the noncustodial parent attaches it to their own return.

A divorce decree or separation agreement that says a noncustodial parent gets to claim the child doesn't override this rule on its own. The IRS still requires the signed release form, so a noncustodial parent counting on a court order alone can have the credit rejected or the return flagged for the mismatch. Sort out who signs the release before filing season starts, not after a rejected return forces the conversation.

The Child Tax Credit Is Not the Kiddie Tax

The Child Tax Credit reduces a parent's tax bill for having a dependent child. The kiddie tax does the opposite: it taxes a child's own unearned income, like interest or dividends from a custodial account, at a parent's marginal rate once that income passes a small annual threshold. The two rules apply to different taxpayers and different kinds of income, even though both involve a child's finances on the same household return.

A family can run into both at once without any conflict between them. Parents claim the Child Tax Credit on their own return for a dependent child, while a custodial UTMA or UGMA account held in that same child's name can separately trigger the kiddie tax if it throws off enough investment income. See our custodial account taxes and the kiddie tax guide if your child holds an investment account in their own name.

Frequently asked questions