Understanding the Child Tax Credit: What You Need to Know
Raising children is expensive. The Child Tax Credit is one of the most valuable tax benefits the federal government offers families — it directly reduces what you owe, and in many cases it puts money back in your pocket as a refund. This guide covers 2026 credit amounts, who qualifies, how the refundable portion works, and exactly how to claim it on your return.
What Is the Child Tax Credit?
The Child Tax Credit is a federal tax benefit that lowers the amount of income tax you owe for each qualifying child you support. Congress created it to help offset the cost of raising children — things like food, clothing, childcare, and school supplies.
Here is the simplest way to understand it: when you file your federal taxes each spring, the credit subtracts a dollar amount directly from your tax bill. If the credit is larger than what you owe, part of the remaining amount may be refunded to you as cash. That refundable piece is called the Additional Child Tax Credit (ACTC).
The rules — particularly the credit amounts and income limits — are set by Congress and can change year to year. The amounts below reflect current 2026 law. Always confirm the latest figures at IRS.gov before you file.
Refundable vs. Non-Refundable: How the Credit Works
This distinction matters a lot for lower-income families, so it is worth understanding before you look at the dollar amounts.
A non-refundable credit can only reduce your tax bill to zero. If the credit is worth $2,000 but you only owe $800, you save $800 — but the remaining $1,200 disappears.
A refundable credit goes further. If the credit exceeds what you owe, the IRS sends you the difference as a refund. The Child Tax Credit is partially refundable: up to $1,700 per child (2026 figure) can be refunded through the Additional Child Tax Credit, even if your tax bill is zero. Families with little to no income tax liability often benefit most from this portion.
To receive the refundable portion, you must have earned income of at least $2,500 for the year. The refundable amount is calculated as 15% of your earned income above $2,500, up to the per-child maximum.
2026 Child Tax Credit Amounts
The maximum credit per qualifying child for 2026 is:
| Child's age | Maximum credit per child | Refundable portion (max) |
|---|---|---|
| Under 6 | $2,000 | Up to $1,700 |
| 6 to 17 | $2,000 | Up to $1,700 |
Note: Legislation passed in 2021 temporarily raised the credit to $3,600 (under 6) and $3,000 (6–17). Those expanded amounts expired after 2021. Current law sets the credit at $2,000 per child regardless of age. Congress periodically revisits these figures — check IRS.gov for any updates before filing.
Income Phase-Out
The full $2,000 credit is available up to these income thresholds:
- Single filers: Up to $200,000 in modified adjusted gross income (MAGI)
- Married filing jointly: Up to $400,000 in MAGI
Above those thresholds, the credit phases out by $50 for every $1,000 of income over the limit. For example, a single filer earning $202,000 with one child would see the credit reduced by $100 — from $2,000 to $1,900.
Example: Family With Three Children
A married couple with a 4-year-old, a 9-year-old, and a 14-year-old — and income below $400,000 — can claim $2,000 per child, for a total credit of $6,000. If their tax bill is $4,500, the credit wipes it out and up to $1,500 more may come back as a refund through the ACTC, subject to the earned-income calculation.
Who Qualifies for the Child Tax Credit?
To claim the credit, both you and the child must meet several tests.
The Qualifying Child Tests
- Age: The child must be 17 or younger at the end of the tax year.
- Relationship: The child must be your biological child, adopted child, foster child, stepchild, sibling, half-sibling, or a descendant of any of these (grandchild, niece, nephew, etc.).
- Residency: The child must have lived with you for more than half the tax year.
- Support: You must have provided more than half of the child''s financial support during the year.
- Dependent status: The child must be claimed as your dependent on your tax return.
- Social Security Number: The child must have a valid SSN issued before the due date of your tax return.
Your Own Requirements
- You must have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN).
- You must file a federal tax return — the credit is not automatic.
- Your income must fall within the limits described above.
- You must be a U.S. citizen, U.S. national, or U.S. resident alien.
Who Is Not Eligible?
You cannot claim the Child Tax Credit if:
- The child does not have a valid SSN by the return due date (an ITIN is not sufficient for the child).
- The child lived with you for half the year or less.
- Another person is also claiming the same child as a dependent — only one taxpayer can claim each child per year.
- Your income is too high and the phase-out reduces your credit to zero.
- The child turns 18 on or before December 31 of the tax year.
How to Claim the Child Tax Credit on Your Tax Return
The credit does not apply automatically — you claim it when you file. Here is how the process works.
Step 1 — List Each Child as a Dependent
On Form 1040, list each qualifying child in the Dependents section. You will need their full legal name, Social Security Number, and relationship to you. Each child listed here is a potential credit claim.
Step 2 — Complete Schedule 8812
Schedule 8812 (Credits for Qualifying Children and Other Dependents) is where the IRS calculates your exact credit amount. Tax software fills this out automatically based on your income and the number of qualifying children you enter. If you file on paper, attach Schedule 8812 to your Form 1040.
Step 3 — Apply the Credit to Your Tax Bill
The non-refundable portion of the credit reduces your tax liability on line 19 of Form 1040. If this brings your bill to zero, Schedule 8812 calculates whether you qualify for the refundable Additional Child Tax Credit (ACTC), which appears on line 28.
Step 4 — File and Keep Your Records
File your return by the April 15 deadline (or request an extension). Keep birth certificates, proof of residency (school records, medical records, lease agreements), and Social Security cards for each child in case the IRS asks for documentation later. You do not submit these documents with your return — they are for your records only.
Tip: If you use tax software like TurboTax, TaxSlayer, or FreeTaxUSA, the child tax credit questions are prompted automatically. If your income is $79,000 or below, IRS Free File offers free guided software options at IRS.gov/freefile.
How You Receive the Credit
The non-refundable portion of the credit lowers your tax bill when you file — you simply owe less. If the credit exceeds what you owe, the refundable ACTC portion is paid out as part of your regular tax refund, deposited directly to your bank account or mailed as a check.
There are no monthly advance payments available for 2026 — the advance payment program that ran in 2021 was not extended. The full credit is received at tax filing time.
State Child Tax Credits
More than a dozen states now offer their own Child Tax Credit on top of the federal credit. These vary widely in structure — some are a flat dollar amount per child, others are a percentage of the federal credit, and a few are fully refundable even for families with no state tax liability.
States with notable Child Tax Credits as of 2026 include California, Colorado, Connecticut, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oregon, Utah, and Vermont, among others. Each has its own age limits, income thresholds, and credit amounts.
Check your state''s department of revenue website or ask your tax preparer to confirm whether your state offers a credit and what you need to claim it.
Not sure what other benefits you qualify for? Sign up for a free BenefitKarma account to discover every federal and state benefit available to you and your family.