💡 Key takeaways
- The 2026 credit is up to $2,200 per qualifying child, and up to $1,700 of it can be refundable.
- It phases out starting at $200,000 of income (or $400,000 married filing jointly).
- A credit reduces tax dollar for dollar; refundable means part can be paid even if you owe no tax.
- The child must meet age, relationship, residency, support and identification tests.
2026 amounts
| Item | Amount |
|---|---|
| Maximum credit per qualifying child | $2,200 |
| Refundable portion (Additional Child Tax Credit) — maximum | $1,700 |
| Phase-out starts (single, head of household, married filing separately) | $200,000 |
| Phase-out starts (married filing jointly) | $400,000 |
The credit is reduced by $50 for each $1,000 (or part of $1,000) of income above the phase-out threshold. Qualifying-child rules (age, relationship, residency, support and identification requirements) apply; see the IRS for the details that apply to your family.
How it reduces your tax
A tax credit reduces your tax bill dollar for dollar, unlike a deduction, which reduces taxable income. The federal income tax calculator on this site applies the credit for the number of qualifying children you enter.
Who counts as a qualifying child
The IRS tests include age, relationship, residency, support and a valid taxpayer identification number. Read the IRS guidance for your family situation; custody arrangements and shared households have specific rules.
How the phase-out works
The credit is reduced by $50 for every $1,000 (or part of $1,000) of income above the threshold. For example, a single parent with income $10,000 above the $200,000 threshold loses $500 of credit.
How to claim it
- List each child with a valid identification number on your return.
- Complete the child tax credit worksheet or Schedule 8812 as instructed.
- Update your Form W-4 if you want the credit reflected in your paychecks.
🔤 Key terms
| Term | Meaning |
|---|---|
| Refundable credit | A credit you can receive even if it exceeds your tax |
| Phase-out | A gradual reduction above an income threshold |
| Qualifying child | A child who meets the IRS tests |
| Schedule 8812 | Form used for the credit calculation |
⚠️ Common mistakes to avoid
- Claiming a child who does not meet the residency or support tests.
- Missing a Social Security number requirement.
- Forgetting to update withholding after the credit changes.
- Assuming the full amount is always refundable.
🛠️ Try it yourself
❓ Frequently asked questions
How much is the child tax credit in 2026?
Up to $2,200 per qualifying child; up to $1,700 may be refundable.
Who can claim the credit for a child of divorced parents?
Generally the custodial parent, unless the IRS release-of-claim rules are used. Check IRS guidance.
Does the credit reduce my withholding?
It does not change withholding automatically; use Form W-4 or the IRS Tax Withholding Estimator.
Do I need a Social Security number for the child?
A valid identification number is required; check IRS rules.
📚 Sources
This guide is general information, not financial, tax or legal advice. Rules and limits change; confirm with the sources above or a licensed professional.