Child Tax Credit 2026: Amount, Income Limits, and How to Qualify
The Child Tax Credit for 2026 is $2,200 per qualifying child under age 17, with up to $1,700 refundable as the Additional Child Tax Credit (ACTC). The phase-out begins at $200,000 MAGI for single filers and $400,000 MAGI for married filing jointly. This guide covers who qualifies, how the phase-out works, and what the One Big Beautiful Budget Act (OBBBA) changed for 2026 and beyond.
CTC amount for 2026
The Child Tax Credit provides $2,200 per qualifying child for tax year 2026. The credit has two components:
- Nonrefundable portion: Up to $500 per child can reduce your federal income tax to zero. If it reduces your tax below zero, you cannot receive the nonrefundable portion as a refund.
- Refundable portion (ACTC): Up to $1,700 per child is refundable through the Additional Child Tax Credit. This means you can receive up to $1,700 per child as a refund even if you owe no federal income tax, provided you have earned income above $2,500.
Example: A single parent with one child and a $4,000 federal income tax liability receives the full $2,200 CTC, reducing their tax to $1,800. If the parent had a $1,500 tax liability instead, the credit reduces it to zero and the remaining $700 (up to the $1,700 ACTC cap) could be refunded.
Qualifying child requirements
To claim the Child Tax Credit, your child must meet all six of the following tests under IRC Section 24:
- Age test: The child must be under age 17 at the end of the tax year. A child who turns 17 during 2026 does not qualify.
- Social Security number test: The child must have a valid Social Security number (SSN) issued by the Social Security Administration. An Individual Taxpayer Identification Number (ITIN) or Adoption Taxpayer Identification Number (ATIN) does not qualify for the CTC (though an ATIN may qualify for the ACTC in some adoption situations - see your adoption paperwork).
- Relationship test: The child must be your son, daughter, stepchild, foster child, sibling, step-sibling, half-sibling, or a descendant of any of them (such as a grandchild, niece, or nephew).
- Residency test: The child must have lived with you for more than half the tax year. Temporary absences for school, medical care, or military service generally count as time lived with you.
- Support test: The child must not have provided more than half of their own support during the year. A child with significant income from a job or investments who pays their own way may fail this test.
- Dependent test: The child must be claimed as your dependent on your return. Generally, only one taxpayer can claim a child as a dependent. In divorce situations, the custodial parent has the right to claim the dependent unless they sign Form 8332 releasing it to the noncustodial parent.
Phase-out by filing status
The Child Tax Credit begins to phase out when your modified adjusted gross income (MAGI) exceeds the following thresholds:
| Filing Status | Phase-Out Begins |
|---|---|
| Single | $200,000 |
| Married Filing Jointly | $400,000 |
| Married Filing Separately | $200,000 |
| Head of Household | $200,000 |
These thresholds are statutory (set by law) and are not adjusted for inflation each year. For married filing separately, the threshold is the same as for single filers - $200,000 - not half the MFJ threshold.
How the phase-out is calculated
The credit is reduced by $50 for each $1,000 (or fraction thereof) of MAGI above the phase-out threshold. "Fraction thereof" means that any amount over a full $1,000 counts as a full additional $1,000 for purposes of this calculation.
Example - Single filer, $215,500 MAGI, two children:
- Excess MAGI: $215,500 - $200,000 = $15,500
- Round up to nearest $1,000: $16,000 (because $15,500 has a fraction beyond $15,000)
- Reduction: ($16,000 / $1,000) x $50 = $800
- Full credit for two children: $4,400
- Credit after phase-out: $4,400 - $800 = $3,600
Use the Child Tax Credit calculator to run your own numbers instantly.
Why the credit stops at age 17
The cutoff at age 17 is written directly into IRC Section 24. Congress defined "qualifying child" for the CTC as a child who "has not attained age 17" at the close of the taxable year. This is a hard cutoff - there is no partial credit for a child who turns 17 partway through the year.
This is a narrower definition than the general "qualifying child" standard used for the dependency exemption and other credits, which allows children up to age 18 (or 23 if a full-time student) to qualify. The CTC specifically uses the under-17 rule.
What happens when your child turns 17? You may still claim them as a dependent and receive the Credit for Other Dependents - a separate, nonrefundable $500 credit available for dependents who do not qualify for the CTC. This credit phases out at the same MAGI thresholds as the CTC.
The distinction between "qualifying child" (under 17, for CTC) and "qualifying relative" (used for other dependent credits) is a common source of confusion. The age cutoff exists because the CTC was designed to assist families with young children - the cost of raising a child is generally highest in the early years.
What changed from 2025 (OBBBA)
The One Big Beautiful Budget Act made the $2,200 CTC amount permanent. This is the most significant change affecting the CTC for 2026 and beyond.
Before OBBBA, the $2,000 CTC amount from the Tax Cuts and Jobs Act of 2017 was set to expire after 2025, with a potential reversion to the pre-TCJA $1,000 amount. OBBBA permanently established $2,200 as the credit amount and $1,700 as the refundable ACTC cap, eliminating the uncertainty around future year cliffs.
The phase-out thresholds ($$200,000 single, $$400,000 MFJ) remain statutory and unchanged by OBBBA.
Estimate your credit
Use the Child Tax Credit calculator to estimate your 2026 credit based on your MAGI, filing status, and number of qualifying children. The calculator applies the phase-out rules automatically and shows both the total credit and the refundable ACTC portion.