The child tax credit is one of the most valuable tax breaks for American families. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, made the credit’s expanded structure permanent, raised the maximum to $2,200 per child starting with tax year 2025, and indexed it to inflation for future years. It also tightened Social Security number rules. This guide explains how the child tax credit 2026 rules work, who qualifies, how much of the credit is refundable, and what to know when you file.
*This article is for general informational purposes and is not tax advice. Check IRS guidance or consult a qualified tax professional for your situation.*
Child tax credit at a glance
| Feature | Tax years 2025 and 2026 |
|---|---|
| Maximum credit per qualifying child | $2,200 |
| Maximum refundable portion (Additional Child Tax Credit) | $1,700 per child |
| Age limit | Under 17 at the end of the tax year |
| Phase-out begins | $200,000 MAGI ($400,000 married filing jointly) |
| Phase-out rate | $50 per $1,000 of income above the threshold |
| Earned income needed for refundable portion | At least $2,500 |
| Credit for other dependents | Up to $500 per dependent, nonrefundable |
The $2,200 amount is adjusted for inflation after 2025, rounded down to the nearest $100. For 2026, the IRS confirmed that the maximum remains $2,200 and the refundable portion is up to $1,700 per child.
Who is a qualifying child?
To claim the child tax credit, each child generally must:
- Be under age 17 at the end of the tax year.
- Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them, such as a grandchild, niece, or nephew.
- Not provide more than half of their own support for the year.
- Have lived with you for more than half the year, with exceptions for temporary absences, births, and deaths during the year.
- Be claimed as your dependent on your return.
- Not file a joint return for the year, except to claim a refund of withheld taxes.
- Be a US citizen, US national, or US resident alien.
Social Security number requirements
The OBBBA added a new requirement for the taxpayer as well as the child:
- Each qualifying child must have a Social Security number valid for employment in the US, issued before the due date of the return, including extensions.
- The taxpayer must also have a valid SSN. For married couples filing jointly, at least one spouse must have a valid SSN.
Children who do not meet the SSN requirement, and other dependents such as older children or elderly parents, may qualify for the $500 credit for other dependents instead, if they meet the dependency rules.
How the refundable portion works
The child tax credit first reduces the federal income tax you owe. If the credit is larger than your tax bill, part of the excess may be refunded through the Additional Child Tax Credit (ACTC).
- The refundable amount is capped at $1,700 per child for 2025 and 2026.
- It is generally calculated as 15% of earned income above $2,500, up to the per-child cap.
- Families with three or more qualifying children may use an alternative calculation based on Social Security taxes paid if it gives a larger amount.
Example
A single parent with two qualifying children earns $22,500 in wages. After the head of household standard deduction, the parent owes no federal income tax, so the nonrefundable part of the credit has nothing to offset. For the refundable portion, 15% of earned income above $2,500 is 15% × $20,000 = $3,000. The refund is limited to the lesser of that amount or $1,700 per child ($3,400). The parent receives an ACTC of $3,000.
Income phase-out
The credit begins to shrink for higher-income families. It is reduced by $50 for every $1,000, or fraction of $1,000, of modified adjusted gross income above:
- $400,000 for married couples filing jointly
- $200,000 for all other filers
These thresholds are not indexed for inflation.
Example
A married couple with two children has MAGI of $430,000. That is $30,000 over the threshold, which reduces their total credit by $1,500. Their maximum credit of $4,400 falls to $2,900.
How to claim the credit
- File Form 1040 and list each qualifying child as a dependent with their SSN.
- Complete Schedule 8812, Credits for Qualifying Children and Other Dependents, which calculates both the nonrefundable credit and the ACTC.
- Keep documentation of each child’s relationship, residency, and age, such as school or medical records and birth certificates, in case the IRS asks.
Tax software and most preparers handle Schedule 8812 automatically.
Refund timing
Under the PATH Act, the IRS cannot issue refunds that include the Additional Child Tax Credit or the Earned Income Tax Credit before mid-February. This helps prevent fraud. If you file early and claim the ACTC, expect your refund later in February or early March.
Divorced or separated parents
Generally, the custodial parent, the one the child lived with for the greater number of nights, claims the child tax credit. The custodial parent can release the claim to the noncustodial parent using Form 8332. Head of household status and the Earned Income Tax Credit cannot be transferred this way, so the rules can be complex. Only one taxpayer can claim the credit for a given child.
Related benefits for families
The OBBBA also expanded other family benefits:
- Child and dependent care credit: enhanced starting in 2026, with a higher credit rate for many lower- and middle-income families.
- Dependent care FSA limit: increased to $7,500 per household starting in 2026, up from $5,000.
- Adoption credit: up to $5,000 of the credit became refundable, with the refundable amount indexed for inflation ($5,120 for 2026).
- Trump accounts: a new type of savings account for children, with a one-time $1,000 federal contribution for eligible US citizen children born from 2025 through 2028.
- Earned Income Tax Credit: remains available for eligible working families with children.
Planning tips for parents
- Update your Form W-4 after a birth or adoption. Claiming dependents on your W-4 lowers withholding so you receive the benefit of the credit throughout the year instead of waiting for a refund.
- Apply for a Social Security number promptly for a newborn, usually at the hospital when you complete the birth certificate paperwork. Without a valid SSN issued by the return due date, the child cannot qualify for the credit.
- Watch income near the phase-out. Pre-tax retirement contributions can lower MAGI for families near the $200,000 or $400,000 thresholds.
Common mistakes to avoid
- Claiming a child who turned 17 during the year; they may qualify only for the $500 credit for other dependents
- Missing or mismatched Social Security numbers
- Both parents claiming the same child
- Forgetting Schedule 8812
- Assuming you cannot get the credit because you owe no tax; the refundable portion may still apply if you have earned income
State child tax credits
Many states offer their own child tax credits or similar benefits, some of them refundable. Eligibility and amounts vary widely, so check your state’s tax agency website.
Frequently Asked Questions
How much is the child tax credit for 2026?
Up to $2,200 per qualifying child under 17, with up to $1,700 refundable through the Additional Child Tax Credit, subject to income limits.
Do both parents need a Social Security number?
For married couples filing jointly, at least one spouse must have a valid SSN, and each qualifying child must have a valid SSN. Single filers must have their own valid SSN.
Can I get the child tax credit if I do not owe taxes?
You may receive the refundable portion if you have at least $2,500 of earned income. The refund is up to $1,700 per child for 2025 and 2026.
What if my child turns 17 during the year?
They will not qualify for the child tax credit that year but may qualify for the $500 credit for other dependents.
Are there monthly child tax credit payments?
No. The advance monthly payments were a temporary feature for 2021. The credit is now claimed when you file your annual tax return.
This article is for general informational purposes only and is not legal, medical, tax, or financial advice. Rules vary by state and change over time; confirm details with the relevant agency or a licensed professional.
