The short answer
For tax year 2026 the Child Tax Credit is worth up to $2,200 for each qualifying child under 17. It reduces the federal income tax you owe, and if the credit is larger than your tax, up to $1,700 per child can be paid to you as a refund, as long as you have earned income: the refundable part is 15 percent of earnings above $2,500. Dependents who do not qualify, such as a 17-year-old or an elderly parent, can bring a separate $500 credit that only reduces tax. Both credits shrink by $50 for every $1,000 of income above $200,000, or $400,000 for a married couple filing jointly. Each child needs a Social Security number valid for employment, and since 2025 so does at least one parent claiming the credit. You claim it on your tax return with Schedule 8812; there are no monthly payments, and refunds that include it are not issued before mid-February.
How much is the credit worth for 2026?
The credit grew and was made permanent by the 2025 tax law, so figures from a few years ago, when it was briefly larger for young children and paid monthly, are no longer a guide. For tax year 2026, the return most families file in early 2027:
Swipe sideways to see the whole table.
| Who it is for | Credit | Can be refunded |
|---|---|---|
| Each qualifying child under 17 | Up to $2,200 | Up to $1,700 of it |
| Each other dependent, such as a 17-year-old or a parent you support | $500 | No; it only reduces tax |
Both amounts are set to rise with inflation in later years, in steps of $100, so check the figure for the year you are filing.
The credit is applied to your tax first. A family that owes $3,000 in tax and has two qualifying children uses $3,000 of its $4,400 credit to wipe out the tax, and may receive part of the remaining $1,400 as a refund, depending on its earnings. The refund half of the credit is where most of the confusion lives, and it has its own section below.
Which children qualify?
A child must pass every one of these tests for the year:
- Age: under 17 on December 31.
- Relationship: your son, daughter, stepchild, foster child, sibling, half-sibling or step-sibling, or a descendant of any of them, such as a grandchild, niece or nephew.
- Residency: lived with you for more than half the year. A child born or who died during the year counts if they lived with you for more than half the time they were alive.
- Support: did not provide more than half of their own support.
- Dependent: is claimed as your dependent and does not file a joint return, except to claim a refund.
- Citizenship and number: is a U.S. citizen, national or resident alien with a Social Security number valid for employment, issued by the due date of the return.
The newer rule is about the parent. Since 2025, the person claiming the credit also needs a Social Security number valid for employment; on a joint return, one spouse's number is enough. A taxpayer identification number is not sufficient for the Child Tax Credit, though it is for the $500 credit for other dependents.
How much will I get back if I owe little or no tax?
This is the question that matters most to families with modest incomes, and the answer depends on earnings, not on the number of children alone. The refundable part, often called the additional child tax credit, is limited twice: to $1,700 per qualifying child, and to 15 percent of your earned income above $2,500. Earned income means wages, salary, tips and net self-employment income. A family with no earnings receives no refund from the credit, however many children it has.
A hypothetical example: a parent with low earnings
Nina has two children and earns $15,000 in 2026. After her standard deduction she owes no income tax, so none of her $4,400 credit is needed to cancel tax and only the refundable part matters. Fifteen percent of her earnings above $2,500 is $1,875, less than the $3,400 limit for two children, so she receives $1,875 as a refund.
As Nina's earnings rise, so does her refund, until it reaches the $1,700-per-child limit. Families with three or more children who paid Social Security taxes above the 15 percent amount may get a larger refund through an alternative calculation on Schedule 8812, which tax software and preparers apply automatically. Estimate your Child Tax Credit to see how the refundable part works out at your earnings.
Does a higher income reduce it?
Only well up the income scale. The credit starts to shrink when modified adjusted gross income passes $200,000, or $400,000 for married couples filing jointly; every other filing status, including head of household, uses $200,000. Your combined Child Tax Credit and credit for other dependents falls by $50 for each $1,000 above the threshold, or part of $1,000.
A married couple with three children under 17 and income of $430,000, for instance, is $30,000 over the threshold. Their $6,600 credit falls by 30 times $50, to $5,100. Because the reduction comes off the family's total, larger families stay partly eligible further up the scale. For most families, then, income matters far more at the bottom of the scale, where it decides the refund, than at the top, where it trims the credit.
The birthday that changes the math
The most common reason a family's credit drops from one year to the next is not income. It is a birthday. In the year a child turns 17, even on December 31, the $2,200 credit becomes the $500 credit for other dependents, and none of that $500 can be refunded. For a family that owes no income tax, the child's credit falls from as much as $1,700 to nothing.
The same $500 credit covers other people you support who are not qualifying children: a full-time college student under 24, a parent or other relative who depends on you, or an adult child with a disability, as long as they meet the dependency tests. It is worth claiming, but it helps only families who owe tax.
What if the parents live apart?
Generally only the parent the child lived with for more than half the year can claim the child. That parent can release the claim to the other parent with Form 8332, which lets the other parent take the Child Tax Credit for that child. The release does not move the Earned Income Tax Credit, which stays with the parent the child lived with.
Problems usually start when two people claim the same child: both parents, or a parent and a grandparent sharing a home. The IRS applies tie-breaker rules, and the second return is held or reduced. A conversation before filing season is cheaper than a letter after it.
What about a new baby, a grandchild or shared custody?
A few family situations come up every filing season, and the answers are kinder than many people expect.
- A baby born during the year, even on December 31, counts as having lived with you for the whole year, so you can claim the full credit. Apply for the baby's Social Security number at the hospital; it must be issued by the return's due date, including extensions.
- Grandparents and other relatives raising a child can claim the credit if the child lived with them for more than half the year and they support the child. If a parent living in the same home could also claim the child, the tie-breaker rules usually favor the parent, unless the parent does not claim the child.
- Parents with truly equal custody cannot both claim the same child. If the child spent the same number of nights with each, the tie-breaker gives the claim to the parent with the higher adjusted gross income, unless that parent releases it with Form 8332.
- A child who died during the year can still be claimed if the child lived with you for more than half the time they were alive. It is a painful thing to think about at tax time, and a preparer at a Volunteer Income Tax Assistance site can help with the paperwork.
How, and when, do I get it?
You claim the credit on your federal return, Form 1040, by listing each child as a dependent and completing Schedule 8812. It is never paid automatically, and it is no longer paid monthly; the monthly payments of 2021 were a one-year exception. If your income is below the level that requires a return, you still have to file to receive the refundable part. Free help is available through IRS Free File and Volunteer Income Tax Assistance sites.
By law the IRS cannot issue a refund that includes the refundable credit before mid-February, even if you file in January. Most arrive by early March when you file electronically with direct deposit. The refund is not counted as income for federal benefits such as SNAP, SSI or Medicaid, and is not counted as a resource for 12 months. If you missed the credit in an earlier year, you generally have three years to claim it; see unclaimed tax refunds.
What else might my family qualify for?
Families who qualify for the Child Tax Credit often qualify for the Earned Income Tax Credit on the same return, and, if they pay for care so they can work, the Child and Dependent Care Credit. A single parent may be able to file as head of household, which lowers the tax owed. Some states add a child tax credit of their own, claimed on the state return.
Before you rely on the numbers
This guide explains the federal credit and the published tax year 2026 amounts. It is not tax advice. The IRS works out your credit from your whole return, including your tax liability and who else can claim the same child, and state credits have their own rules.
Official sources
A quick check before filing season
Look at each child's birth date against December 31, confirm that every child and at least one parent has a Social Security number valid for work, and agree with any other adult who might claim the same child. Then estimate your credit with your expected earnings.
