Key Takeaways
- The Child Tax Credit (CTC) is $2,200 per qualifying child for the 2026 tax year (returns filed in 2027), unchanged from 2025 - the OBBBA made it inflation-indexed, but the increase isn't large enough to trigger the $100 rounding increment yet.
- The refundable Additional Child Tax Credit (ACTC) is capped at $1,700 per child for 2026, and requires at least $2,500 in earned income to claim.
- Starting with the 2025 tax year, the parent or guardian claiming the credit must have a valid Social Security Number (SSN) - a new OBBBA requirement that affects some mixed-status families.
- The kiddie tax threshold for 2026 is $2,700: the first $1,350 of unearned income is sheltered, the next $1,350 is taxed at the child's rate, and anything above $2,700 is taxed at the parent's (usually higher) rate.
- The phase-out for the full CTC begins at $200,000 (single) / $400,000 (married filing jointly) and eliminates the credit entirely at $240,000 / $440,000.
The Child Tax Credit (CTC) is $2,200 per qualifying child for the 2026 tax year, following the One Big Beautiful Bill (OBBB) signed in 2025. That $200 increase from the prior $2,000 level is now locked in permanently and indexed for inflation going forward.
For most families, not much has changed dollar-for-dollar from 2025 to 2026 — but the structural rules are different, particularly the new SSN requirement for the person claiming the credit. Here’s what matters right now.
Key Changes to the Child Tax Credit (CTC) Under the OBBBA
The OBBBA made several permanent changes to the CTC starting with the 2025 tax year:
The credit is now $2,200 per qualifying child. That’s up from $2,000 under the old TCJA rules. It covers children under 17, same as before.
The credit is now inflation-indexed. Starting in 2026, the IRS adjusts the CTC amount annually for inflation, rounded to the nearest $100. For 2026, the base is still $2,200 — inflation hasn’t been sufficient to push it to $2,300 yet. The 2027 amount will depend on 2026 price data (more on that in the outlook section below).
A new SSN requirement for claimants. Beginning with 2025 tax returns, the taxpayer claiming the CTC — or at least one spouse if filing jointly — must have a valid Social Security Number. Previously only the child needed an SSN. This is a meaningful change for mixed-status households where children are U.S. citizens but one or both parents are not.
2026 CTC: Amounts, Refundable Portion, and Phase-Outs
For the 2026 tax year, here’s the full picture:
- Earned Income Requirement: You must have at least $2,500 in earned income (wages, self-employment) to claim any portion of the credit.
- Maximum Credit: $2,200 per qualifying child (non-refundable portion, applied against your tax liability first).
- Additional Child Tax Credit (ACTC): The refundable portion is up to $1,700 per child. You qualify for the ACTC at 15% of earned income above $2,500, up to the $1,700 per-child cap.
- Phase-Out Thresholds: The credit begins to reduce for modified AGI (MAGI) above $200,000 (single/HOH) or $400,000 (married filing jointly). It phases out at $50 for every $1,000 of income above those thresholds.
The phase-out thresholds are set by statute and are NOT inflation-indexed, so they don’t change year to year.
Child Tax Credit — Historical Table
| Tax Year | Max CTC Per Child | Refundable Cap (ACTC) | Phase-Out Starts (Joint / Other) |
|---|---|---|---|
| 2026 | $2,200 | $1,700 | $400,000 / $200,000 |
| 2025 | $2,200 | $1,700 | $400,000 / $200,000 |
| 2024 | $2,000 | $1,700 | $400,000 / $200,000 |
| 2023 | $2,000 | $1,600 | $400,000 / $200,000 |
| 2022 | $2,000 | $1,500 | $400,000 / $200,000 |
| 2021 (ARPA expanded) | $3,000–$3,600 | Fully refundable | $150,000 / $75,000 |
The 2021 ARPA expansion that temporarily raised the credit to $3,000–$3,600 per child and paid it monthly is long expired. The OBBBA did not restore advance monthly payments — you claim it on your annual tax return.
Subscribe or follow us to get further updates as 2026 tax guidance comes in.
CTC Qualification Rules
To claim the Child Tax Credit, the child must meet all of the following tests:
- Age: Under 17 at the end of the tax year (16 or younger).
- Relationship: Your son, daughter, stepchild, foster child, sibling, step-sibling, or a descendant of any of these (grandchild, niece/nephew). An adopted child is always treated as your own.
- Support: The child didn’t provide more than half their own financial support during the year.
- Dependent: You claim the child as a dependent on your return — no one else can.
- Citizenship: The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
- Residence: The child lived with you for more than half the year. If two taxpayers claim the same child, it causes delays for both.
- SSN (claimant): Starting 2025, you (or your spouse if filing jointly) need a valid SSN. The child still needs an SSN as well.
Income limits from the table above also apply. The credit is further limited by your actual tax liability and any Alternative Minimum Tax (AMT) you owe.
CTC, ACTC, and ODC — What’s the Difference?
These three credits are related but distinct, and understanding which one you’re getting matters.
CTC ($2,200) is the full credit, but it’s non-refundable in the traditional sense — it can only offset your federal tax liability. If you owe nothing, you can’t get the CTC as a payment.
ACTC (up to $1,700) is the refundable piece. If your CTC exceeds your tax bill, you can still receive a refund through the ACTC — equal to 15% of your earned income above $2,500, per child, up to $1,700 per child.
Example — Mark and Lisa, married filing jointly with two children, earned $85,000. They owe $4,800 in federal taxes. Their CTC is $4,400 (2 × $2,200). The full $4,400 applies against their tax bill, bringing it to $400 owed. No ACTC is needed since the credit didn’t exceed their liability.
Example — Sarah, a single mother with two children, earns $24,500 and has no tax liability. She can’t use the non-refundable CTC. But her ACTC = 15% × ($24,500 − $2,500) × 2 kids = 15% × $22,000 = $3,300. That’s capped at $1,700 per child × 2 = $3,400 max. So she gets a refund of $3,300 as ACTC.
ODC ($500) covers dependents who don’t qualify for the CTC — like a college student over 17 or an elderly parent you’re supporting. It’s non-refundable and phases out at the same income thresholds ($200K/$400K).
You can also claim the Child and Dependent Care Tax Credit (CDCTC) alongside the CTC — they’re separate credits for separate purposes (care costs vs. having a qualifying child).
2026 Kiddie Tax: Unearned Income Thresholds
The kiddie tax is separate from the Child Tax Credit — it’s the rule that taxes a child’s investment income (dividends, interest, capital gains) at the parent’s higher marginal rate once it crosses a threshold.
For 2026, the rules are the same as 2025:
- First $1,350 of unearned income: Tax-free (covered by the dependent’s standard deduction)
- Next $1,350 (income from $1,350 to $2,700): Taxed at the child’s own rate
- Over $2,700: Taxed at the parent’s marginal tax rate
This applies to children who are:
- Under 19 at year-end, OR
- Full-time students between 19 and 23, AND
- Whose earned income doesn’t exceed half their support
A child who earns more than $2,700 in unearned income and meets the above criteria needs to file Form 8615 with their tax return.
Example — Emma, age 15, received $3,500 in stock dividends from a custodial account her parents funded. The first $1,350 is sheltered. The next $1,350 is taxed at Emma’s rate (likely 10–12%). The remaining $800 is taxed at her parents’ top marginal rate — say 22%. Without the kiddie tax, all $3,500 would be taxed at Emma’s low rate. Parents who gift appreciated assets to kids to exploit lower rates often run into this rule.
The kiddie tax does NOT apply once a child is 19 and not a student, or once they are 24 regardless of student status.
EITC and ACTC Refund Delays (PATH Act)
If you claim the Earned Income Tax Credit (EITC) or the ACTC, the IRS is legally required to hold your entire refund until mid-February — even the non-EITC/ACTC portion.
This is mandated by the PATH Act, an anti-fraud safeguard. It applies every year. Your refund freeze affects the refund schedule for the whole return, not just the credit portion.
You can track it on your IRS transcript once processing begins.
State Child Tax Credits
Several states have their own CTC on top of the federal credit. Qualifying criteria vary by state — federal CTC eligibility doesn’t automatically grant you a state CTC. Check your state’s department of revenue website and look for a state-level child tax credit line on your state return.
Common Issues to Watch Out For
1. Parent SSN requirement trips up mixed-status families. I get questions about this a lot. If you’re filing jointly and one spouse doesn’t have an SSN, neither of you can claim the CTC under the new OBBBA rule. This wasn’t required before 2025. Some families who previously qualified no longer do.
2. Confusing CTC with ACTC. The $2,200 is the maximum — but you only get cash back (a refund) through the ACTC, which is capped at $1,700 and requires earned income. If you have no tax liability AND very low earned income (under $2,500), you get nothing.
3. The $2,500 earned income floor matters more than people think. If you earn $2,499, you get zero CTC. At $2,501, you start phasing in. The pandemic waived this requirement in 2020–2021. It’s fully back now.
4. The kiddie tax catches parents who fund custodial accounts too generously. A $10,000 stock account paying 5% in dividends generates $500 in unearned income — well under the threshold. But a $100,000 account generating $5,000 in dividends means $2,300 is taxed at the parents’ rate, not the child’s. If you’re building a custodial account, keep this math in mind.
5. Dependent turning 17 during the tax year. If your child turns 17 at any point during the year, they do not qualify for the CTC that year. Not under 17 “at year end” means the whole credit is gone. I see this create confusion every filing season.
Looking Ahead: 2027 Outlook
The 2026 CTC is still $2,200 because the inflation adjustment hasn’t cleared the $100 rounding increment yet. For 2027, that depends on 2026 CPI data, which the IRS typically incorporates into a Revenue Procedure published in October or November 2026.
Here’s what I’m watching: if 2026 inflation runs around 3–4%, the raw adjustment on $2,200 would be roughly $66–$88. That’s not enough to round up to $100, so the credit stays at $2,200. For it to hit $2,300 in 2027, you’d need cumulative inflation to push the adjustment over $50 — about 2.3% in annualized terms from the OBBBA base.
The kiddie tax thresholds ($1,350 / $2,700) are also inflation-indexed and could tick up to $1,400 / $2,800 for 2027, depending on the same CPI data. Similarly likely to stay flat unless inflation is persistent.
The ACTC refundable cap ($1,700) is also indexed, and the same logic applies.
I’ll update this page when the IRS releases its 2027 adjustments. Subscribe here to get notified when that happens.
How do i know if I will owe the child tax credit I have received?? I haven’t worked since the pandemic started and around that time I was pregnant. So I stayed home. So when i do my 2021 tax return. I will have no income to claim. Do I even file for a return ? Do I have to pay the CTC back?
My three children live with me 85% of the year and I may a significantly less amount of money as my ex. When we were in the process of getting divorced, I did not realize I should try and get the deduction for the kids. The divorce decree has us each taking one and and alternating the third as dependents on our taxes. I was just made aware that because they live with me the majority of the time I should be able to claim all three as dependents. Not only will that help me at tax time it also allows me to have less withheld during the year so I have more money each month. And now the stimulus money he got 2 child payments ($1000) and I only received one ($500). I told him that money is meant to go to who the kids are living with to help with day to day expenses – he laughed and wasn’t about to give me any. Can I change it so I can deduct all three children? Do I have to get a lawyer and all that fun stuff or can I just start claiming them and when they ask for proof I give them the proof they live here the majority of the time – knowing he will be giving them a copy of the divorce decree. The kids are still young enough where I think I should change it while I still can. And if it is approved can I amend past returns? Thanks in advance!!
Hey so I let my son grandma claim 3 of my kids on her taxes since 2012 and she haven’t gave me no money for the stimulus check do anybody know how I can get help on getting my kids 500 per kids I’m struggling and need it and I don’t think it’s okay for people to do things like this my kids need this money and I know it’s a way I can get help on trying to get the money the irs gave to my 3 kids
I filed taxes every year with my wife at the time. We have 2 kids, both under age. We have divorced 5 years ago. I claim my daughter every year, so with this stimulus package we all got i only received the 1200 but not the 500 for my daughter. Is there a reason for this? I called child support agency and I’m good there. I’m actually ahead of the game with them. I just don’t understand it. Can I get any answers please?
How old is your daughter? Under 17? Are you sure your wife didn’t claim her as well? The IRS will send you a payment letter in 15 days and you can submit an appeal.
My sons father and I have a shared parenting plan. This year was his year to claim our son on taxes. Even tho he has 10 kids and doesn’t need the credit. I didnt receive the 500 on my stimulus. Which sucks because my son is here more.
Isn’t it crazy max age is 17? Most kids graduate at age 18. So we’re not allowed a child credit, (to offset cost of raising our child)while they’re still in high school? Perhaps they need 1 more requirement: Qualifying up to age 18/19, if they were still in High School, (& not because they’re duplicating years)
I absolutely agree! It should be 19! My daughter doesnt graduate until June 2021.
18 &19 considered adults . Either they started school late or held back still 18 and over are considered adults
I think it’s crazy ! I have twin girls that turned 17in October and both in school still and can’t get child tax .
Why do I not get the Tax Credit for my son. Yes he turn 17 but he still is in school
I pay $200 per month for the person take care my kids, now he want to show it in tax returns and asking a document /form to use an proof. What form/document I suppose to provide for his tax returns in 2018.
can I claim my babies for 2017 taxs if they were born in oct 2017…do the prorate it or do we get it for the whole year.
i had the same question because my 3rd daughter was born in sept 2017, per H&r block we are to put the full 12 months on how long they lived with us.
Last year I had recieved a child care credit (refund) on my federal taxes. This year I paid more in child care costs… Do we still get this credit? When I did my taxes (just a test run to get an idea of what they would be) there was no credit/refund (I thought this would go up a couple hundred since the cost has doubled. My EIC went down (which I understand- I made $1,000 more this year).
I am 47.I have three daughters one in college. My wife is disabled and requires more home care attention than the state will pay for. 751 a month misbehave family of five is living on. I worked for 3 months for about 3700 grosspay. Will I get a decent sum in return when I file for 2017?
I am a grandmother who take care of my grandkids financially but they don’t live in my home. I am the sole provider when it comes to buying their clothes and school clothes, and I help with the bills at their home and buy food when needed. My question is…. will I be able to claim them on my taxes? I have all receipts.
Since they didn’t live with you for over half of the year, they wouldn’t satisfy the residence test and therefore you can’t claim them as dependents on your taxes.
Bernie, sadly you can not claim them. However, the parents should give you part of the tax refund. Mine do live with me and I am certainly claiming one of them. Good luck/
Ok so I’ve never had to do this before but I’m wondering did they cancel the child tax credit for Missouri?I just started a new job and I have guardianship of my nephew bc his dad passed away and I was told last year that it’s no longer offered in the state of Missouri just curious if this is true or not bc I have had him since 2015 and was told we can’t get a (CTC) but thinking it may have been just for that year and bc I didn’t make enough money last year, I just got a new job last Monday I will work 40 hours every week guarantee then after 8 weeks I will bump up to 12.50 per hour for 40 hours each week can anyone tell me if I will get the child tax credit. He is 15 years old but he will be 16 years old in 8 days. He also draws social security off of his daddrgar passed away. Thank in advance.
You have to have at least $3000 in earned income (like from a job) to be eligible for the child tax credit.
It’s a federal tax credit, so it wouldn’t be “cancelled” for residents of Missouri, but’s if you earned less than $3000 you wouldn’t qualify.
There are some other tests that have to be satisfied in order for you to claim your nephew; see the numbered list in the article above under the heading “Child Tax Credit Qualification rules”. You mention that he draws his dad’s social security survivor benefits, If the money he gets from this provides over half of his support, you would not be able to claim him for purposes of the child tax credit. Also you should be aware that since he’s 16 this year, next year he will have “aged out” of the “child” definition for the child tax credit– a child has to be 16 or under at the end of the year to be eligible.
MY daughter turned 17 may 30th of 2017 and is a student does that qualify for child tax credit
Your daughter has to be under 17 on Dec 31st of the tax year
Nope you cannot, I am in the same boat here, so I guess we are both screwed. Nice for the people who have tons of kids under the age of 17 and already don’t pay much in taxes. Go figure.
I don’t get it, we are responsible for our children until they reach 18, then why is the cut off at 16? Are they not a child at 17?????
I totally agree. this credit should be changed to under 19.
If they are not considered “Adult” until 18 we
should be able to claim them.
My girlfriend earned less than 3000$ can she still get child credit?
No.
I was a resident alien and lived first 4 months of 2016 in US along with my son and wife. Then I moved to another country. Am I eligible to claim child tax credit, as all of us were present in the country only for 4 months?
Under physical presence, you are a Resident Alien if in the US for 183 days. This can be in the current year or over the previous 3 years. Count all days in 2016, 1/3 days in 2015 and 1/6 days in 2014 to equal 183. Publication 519. Child Tax Credit can be claimed if: a US Citizen or Resident Alien, child under 17, lived with you for more than half the year, is claimed as a dependent on your return.
Why has the child tax credit stayed at $1000. Why hasn’t it gone up with the cost of feeding kids?
My daughter it’s 16 she earned 2900.00 $ at her job if she files herself and I claim her as a fitment dependent Will I still get the 1,000.00 earned income credit for her
You can’t claim her as a dependent if she files herself.
I am a mother if three and i got the earned income credit i claimed my 3 kids and myself and they are ages 5…2…1 will i get 1000 back each of them if i didnt claim the child tax credit? Worried cause we are so far behind on things and tthe money would help alot. Pkease help me
The child tax credit is not refundable. It only reduces the tax liability. For example: your tax liability is 4,000, so you’ll get 3,000 child tax credit, then your tax liability will be reduced to 1,000.
Not completely true. A portion of the CTC is refundable depending on the circumstances and income level. Easy enough to google it and read on the IRS website.
What if the dad lives in nh and doesn’t live with them can he claim them.
Child has to live in his house for 6 months of the year or longer otherwise it has to be agreed to with custody agreement. if your the sole provider then no he cant
I’m due March 25th 2017,can I filemy 2016 taxes for my baby I’m a single parent.
no child has to be born by December 31 at 11:59 pm in order to be included on your taxes for that year
No. Child has to be alive for 6 months of the year you are fild for. So for 2016 they would have to be born before august
This is not correct. If the kid is born 12/31/2016, you get to claim them on your 2016 return the same as if they were born before 2016.
No it allowa u to put 7 months uf baby was born in oct nov or dec it say it in the child tax form …
Mike is right. See question #9 on this list of questions on the irs.gov site: https://taxmap.irs.gov/taxmap/faqs/faq_02-003.htm#TXMP74ef69f7
will my taxes be on hold since my son is 17 and I don’t get the eic credit
We are wondering the same thing, we normally use turbo tax, it doesnt even give a section to enter her age. But she turned 17 , Jan 14 2016 and is just now a senior in high school, I believe as long as our children are in school we should be about to get the eic credit.
Is it worth filing if I only made $1004.02 and have 3 dependents? Can a relative claim one of my children?
go onto h&r block website and use their calculator that gives you an estimate of what you would receive back. it does not document any info that is entered.
I am a mother of 1 and am not with the father, we have no legal documentation of custody rights. We both want to file, is that possible? A split return?
If both of you try to claim the child for the credit, the IRS will flag and return both of your tax returns. You are far better off deciding between which one of you should claim the credit, and, if you agree to split the credit after that point, the one who receives the full amount of the return can cut the other a check. In some states (Illinois is one), a judge can award the right to claim the credit to a parent on an every-other-year basis. Even years, it’s Dad, odds, it’s Mom.
That’s incorrect, If both parent file the IRS will pay whoever filed first claim and deny the other trust me had it done to me and he filed first so they denied my claim i had to seed prof that i had physical,legal ,primary custody and prof they lived with me the entire year which i did and they refunded me my refund
My grandson turned 17 Oct. 30, 2016. Can I still claim him on my taxes.
You can claim him as dependent (assuming he does not file his own return and is your qualified dependent). But you would not be able to get the CTC for him.
My daughter turned 17 on December 26, can I get the child tax credit of $1000
No, she would fail the age test – “Age Test – To qualify, a child must have been under age of 17 (i.e. 16 years old or younger) at the end of the year in which the credit is being claimed for.”
My son didn’t turn 17 till December why can’t I get tax credit of the $1000
Practical blog post ! I was fascinated by the details . Does anyone know where I might get ahold of a fillable a form document to fill out ?
I’m a singel mom of 3, my oldest is 17. Still I’m school. I’m not understanding why I can’t claim him if he’s a student n lives with me and I support him.
You can claim him, you just don’t get the Child Tax Credit because, even though he is a dependent, he is no longer a “child” in accordance with this credit per the laws passed by Congress.
Hi im a 26yr old divorced woman with 2kids my oldest is in school an my youngest will be 3 in may an will be starting head start soon i make $8 an hr 40hrs a week so around 15,500 a yr i don’t get any child support. Can u give me a estimated amount of how much i will get back when i file next January2016 for this yr??
Depending on how old your first child is, and how much they took out your voucher cks for taxes.. Around 7-9 thousand… Use hnr block tax calculator it’s very accurate…
i am helping a family who has 4 kids in full time schooling. She claims the 15, 10 & 7 year old so she gets the child tax credit but was told she couldn’t claim the 18 year old even though he is a junior in high school and not working. He worked two months during the summer for minimum wage. She receives govt assistance for him but was told she couldn’t or shouldn’t claim him. We want to do what is legally right and with hopes it will hep the family. In addition does he haveto file on his own. Again, he’s living at home and a full time student. Thanks
Legally, assuming he doesn’t provide over half of his own financial support, his mother can and should claim him. He won’t qualify for the Child Tax Credit because he turned 17 in 2016 or earlier, but she can still claim him as her dependent. Whoever told her she can’t claim her oldest is mistaken. However, truth be told, he probably won’t save her anything because all of her federal tax liability will have been eliminated. You can see the effect of him being on her tax return by preparing the return without him and see what her refund will be. Then add him in and see if the refund changes. Chances are it won’t.
I am 36 ..well 35 in December. 2014..I am a single mother. Of a single1 year old
Son..he was born in February28-2014 and. My. Baby daddy went to jail for battery in the2nd degree against me while I was 8 months pregnant ..too keep roof over my son’s and is head I kept my house house cleaned and laundry done ..since I had. New baby and no paying job. I have moved into a friends house..got a job making 7:25 .hr and never get over my20 hours per weekk.I do good to get 8 hrs a week..I have foodstamps 316.00 a month and my bchoirs played our way to live at Robert…I now pay 60.00 every 2 weeks for child care. And been on the waiting list for government housing since September 2014…I’m still waiting to hear back from them…please let me know what if anything I can. Do to get earned income ..I am the one who tool care of hi…only me since my lol buddy.was born ..thanks Tracy George
I have had my godson for over half of the year, am I allowed to claim him?
See this article I wrote on claiming dependents. If he is filing and getting a tax return etc if may be hard for you to claim up. It depends on both your tax filing status’ otherwise the IRS may think you are double dipping!