Child Tax Credit 2026: $2,200 Per Child Rules

The CTC for tax year 2026 provides up to $2,200 per qualifying child — raised from $2,000 under the OBBBA. To qualify, a child must meet all of these:

• Age: Under 17 at the end of the tax year (born after December 31, 2009)
• Relationship: Son, daughter, stepchild, foster child, sibling, step-sibling, or a descendant of any of these
• Residency: Lived with you for more than half the tax year (temporary absences for school, medical care, or military service count)
• Support: Did not provide more than half of their own financial support
• Citizenship: Must be a U.S. citizen, national, or resident alien with a valid Social Security number issued before your return's due date
• Parent SSN (new under OBBBA): At least one parent or guardian claiming the credit must also have a valid SSN — an ITIN no longer qualifies the parent to claim the CTC
• Dependency: You must claim the child as a dependent

Dependents aged 17 through 24 (full-time students) or other qualifying relatives do not get the $2,200 CTC but may qualify for the $500 Credit for Other Dependents (ODC). This nonrefundable $500 credit also applies to dependents without an SSN who have an ITIN.

OBBBA inflation indexing: Starting in tax year 2027, the $2,200 amount will adjust annually with CPI inflation. This prevents the credit from eroding in real value the way it did for years under the fixed $2,000 TCJA amount.

The CTC phases out for higher earners at these thresholds:

• Married Filing Jointly: $400,000 MAGI
• All Other Statuses: $200,000 MAGI

The reduction is $50 for every $1,000 (or fraction) above the threshold. These thresholds have not been indexed for inflation since the TCJA set them in 2018 — so more families phase out each year as wages rise.

Worked example — married couple, two children, $440,000 MAGI:

1. Total CTC before phase-out: 2 × $2,200 = $4,400
2. MAGI above threshold: $440,000 − $400,000 = $40,000
3. Reduction: ($40,000 ÷ $1,000) × $50 = $2,000
4. Remaining CTC: $4,400 − $2,000 = $2,400

Full phase-out points (where credit reaches $0):

• 1 child: $444,000 MFJ / $244,000 single
• 2 children: $488,000 MFJ / $288,000 single
• 3 children: $532,000 MFJ / $332,000 single

Worked example — single parent, one child, $225,000 MAGI:

1. Total CTC: $2,200
2. MAGI above $200,000 threshold: $25,000
3. Reduction: ($25,000 ÷ $1,000) × $50 = $1,250
4. Remaining CTC: $2,200 − $1,250 = $950

At $244,000, the credit disappears entirely for a single parent with one child.

The CTC has two parts that work differently.

Nonrefundable portion ($2,200 per child): Reduces your tax liability dollar for dollar, but only to zero. If you owe $1,500 in federal taxes and have one qualifying child, the nonrefundable CTC wipes out your bill — but you do not receive the remaining $700 as a refund.

Refundable portion — Additional Child Tax Credit (up to $1,700): The ACTC lets families who cannot fully use the nonrefundable CTC receive a refund. It is calculated as 15% of earned income above $2,500.

Example — single parent, $30,000 earned income, one child:

• Earned income above $2,500: $27,500
• 15% of $27,500: $4,125
• ACTC cap: $1,700
• Refundable amount: $1,700 (the $4,125 exceeds the cap)

Example — single parent, $15,000 earned income, one child:

• Earned income above $2,500: $12,500
• 15% of $12,500: $1,875
• ACTC cap: $1,700
• Refundable amount: $1,700 (still hits the cap)

The earned income threshold of $2,500 means the ACTC is unavailable to families with no earned income. This is the key difference from the pandemic-era 2021 CTC, which was fully refundable regardless of income. The OBBBA did not change the ACTC cap — the $1,700 refundable maximum remains, leaving the lowest-income families with the same benefit as before the $2,000→$2,200 increase.

For families earning under $60,000, the Earned Income Tax Credit often delivers a larger benefit than the CTC. Understanding how the two interact is essential for maximizing your refund.

2026 maximum EITC by number of children:

• 0 children: $649
• 1 child: $4,213
• 2 children: $6,960
• 3+ children: $8,231

The EITC is fully refundable — every dollar comes back as cash regardless of tax liability. Combined with the CTC/ACTC, the total benefit for a qualifying family can be substantial.

Comparison — single parent, $25,000 income, two children under 17:

• CTC nonrefundable: covers ~$700 tax liability → $0 owed
• ACTC refundable: $1,700 × 2 = $3,400 back
• EITC: ~$6,200 back
• Total credits: ~$10,300 (mostly refunded as cash)

Comparison — single parent, $45,000 income, two children under 17:

• CTC: $4,400 (mostly applied against ~$3,200 tax liability, remainder via ACTC)
• EITC: ~$3,800 (begins phasing out at higher income)
• Total credits: ~$8,200

The CTC favors middle-income families because the nonrefundable portion requires tax liability to be useful. The EITC favors lower-income families because it is 100% refundable and phases in as income rises from zero. The two credits together create the largest combined refund in the $20,000–$40,000 income range.

Both credits can be claimed simultaneously on the same return. Nearly 1 in 5 eligible filers miss the EITC each year — if you qualify for the CTC and earn under $60,000, check your EITC eligibility as well.

Fifteen states and the District of Columbia now offer their own child tax credits on top of the federal CTC. If you live in one of these states, your total per-child benefit can be significantly higher than the federal $2,200 alone.

Fully refundable state CTCs (2026):

• New York: Up to $1,000 per child under 4, $330 per child ages 4–16 (Empire State Child Credit)
• Colorado: Up to $3,200 per child (highest state CTC in the country)
• Minnesota: Up to $1,750 per child
• California: Up to $1,117 per qualifying child under 6 (Young Child Tax Credit)
• Maine: $315 per child, plus an additional $315 for children under 6
• Maryland, Massachusetts, New Jersey, New Mexico, Oregon, Vermont: Various amounts, all fully refundable

Nonrefundable state CTCs:

• Georgia: $250 per child under 6
• Arizona, Oklahoma, Utah: Various amounts

Example — New York family, two children (ages 2 and 7):

• Federal CTC: $2,200 × 2 = $4,400
• NY Empire State Credit: $1,000 (age 2) + $330 (age 7) = $1,330
• Total: $5,730 before EITC or any other credits

Example — Colorado family, three children under 6:

• Federal CTC: $2,200 × 3 = $6,600
• Colorado CTC: up to $3,200 × 3 = $9,600
• Total: up to $16,200 — a transformative amount for a middle-income family

State credits have their own income limits and qualifying rules. Check your state tax authority's website for exact eligibility. The federal CTC phase-out and the state credit phase-out are calculated independently.

Step 1: Complete Form 1040. The nonrefundable CTC goes on line 19.

Step 2: File Schedule 8812. This worksheet calculates both the nonrefundable CTC and the refundable ACTC. It walks through the income phase-out and determines how much credit you can claim.

Step 3: Ensure valid SSNs. Each qualifying child needs an SSN issued before your return's due date. Under OBBBA, at least one parent must also have an SSN — an ITIN-only household can no longer claim the CTC (though the $500 ODC remains available).

Step 4: Report both components. Nonrefundable CTC: Form 1040 line 19. Refundable ACTC: Form 1040 line 28. These are separate line items because they interact differently with your total tax liability.

Divorced or separated parents: Only the custodial parent (child lived with them 50%+ of the year) can claim the CTC, unless they sign Form 8332 releasing the claim to the noncustodial parent. If released, the noncustodial parent gets the CTC but the custodial parent retains EITC eligibility.

Multiple children: Each qualifying child generates a separate $2,200 credit. A family with three qualifying children could receive up to $6,600 in nonrefundable credits and up to $5,100 in refundable ACTC.