The Child Tax Credit in 2026.

The Child Tax Credit is the largest single tax benefit most US families with young children receive. For tax year 2025 and 2026, it is worth up to $2,000 per qualifying child under 17, with up to $1,700 of that refundable. This guide covers who qualifies, how it is calculated, what is different about it from the daycare-specific Child and Dependent Care Tax Credit, and what is likely to change in coming legislative cycles.

The big picture

The Child Tax Credit (CTC) is a federal tax credit that reduces your tax bill if you have a qualifying child. It is codified at IRC Section 24 and claimed via Schedule 8812 on your federal return.

For tax year 2025 (filed in 2026):

• Up to $2,000 per qualifying child under age 17 at the end of the year.
• Up to $1,700 of that is refundable as the "Additional Child Tax Credit" (ACTC) — meaning you can receive it as a refund even if your tax bill is already $0.
• Up to $500 nonrefundable Credit for Other Dependents for older or non-qualifying-child dependents (e.g., a 17-year-old or a dependent parent).
• Begins phasing out at AGI above $200,000 (single, head of household, qualifying widow) or $400,000 (married filing jointly), at a rate of $50 reduction per $1,000 of AGI over the threshold.

For tax year 2026 (filed in 2027): the credit is scheduled to revert to pre-2018 rules at the end of 2025 under current law unless Congress acts. Watch for legislation. As of this writing (May 2026), the $2,000 / $1,700 structure is still in effect through extensions in tax year 2026.

Who qualifies

Five requirements, all of which must be met:

1. Age. The child must be under 17 at the end of the tax year.
2. Relationship. Must be your son, daughter, stepchild, foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of these (e.g., a grandchild, niece, nephew).
3. Dependent status. The child must be claimed as a dependent on your return.
4. Citizenship. The child must be a US citizen, US national, or US resident alien, with an SSN issued before the return due date.
5. Residency. The child must have lived with you for more than half the tax year (with some exceptions for divorce, separation, kidnapping, and birth or death during the year).

How the math works

The full $2,000 credit applies against your federal income tax liability first. If your tax liability is less than the credit, the unused portion is partially refundable up to $1,700 per child via the Additional Child Tax Credit.

The refundable portion is calculated as the lesser of:

• The unused nonrefundable CTC, or
• 15 percent of your earned income above $2,500.

This 15-percent earned-income phase-in is the reason the credit is often called "partially refundable but only for working families." Households with no earned income receive a $0 CTC even though they have children.

Worked examples

CTC vs CDCC — they are different

The Child Tax Credit and the Child and Dependent Care Tax Credit are two completely separate provisions. You can claim both in the same year.

For the daycare-specific credit, see our full guide to the CDCC, DCFSA, and state credits. For the broader cost picture, see our pillar daycare cost explained.

The 2021 expansion — what changed, what didn't

In 2021, the American Rescue Plan Act temporarily expanded the CTC:

• Increased to $3,600 per child under 6 and $3,000 per child 6 to 17.
• Made the credit fully refundable (no earned-income requirement).
• Distributed monthly via advance payments July-December 2021.
• Tax Policy Center estimates the expansion lifted 3 million children out of poverty.

The 2021 expansion was for one year only. It expired at the end of 2021 and the credit reverted to the $2,000 / partially-refundable structure. Subsequent legislative proposals to extend or restore the expansion have not passed as of May 2026.

What is likely to change

Under current law, the $2,000 / $1,700 structure expires at the end of tax year 2025. Absent congressional action, the credit reverts to:

• $1,000 per qualifying child.
• $0 refundable in some configurations (older rules).
• Lower income phase-out thresholds.

In practice, Congress has historically extended the higher amount near the deadline. Tax bills moving through Congress in 2024-2026 included proposals to permanently set the credit at $2,000 indexed to inflation, or to expand it back toward 2021 levels. As of May 2026, the most recent extension keeps the $2,000 / $1,700 structure in place; subsequent law could shift it again.

Bottom line: file your 2025 and 2026 returns assuming the $2,000 / $1,700 structure. Watch for legislative changes that may affect 2026 onward.

How to claim it

The CTC is claimed via Schedule 8812 with your federal Form 1040. You will need:

• Each child's SSN, name, and date of birth.
• Confirmation that each child meets the relationship, residency, and dependent tests.
• Your earned income (for the refundable portion calculation).
• Your AGI (for the phase-out calculation).

All major tax software prompts for the CTC automatically when you enter dependent children. If you are using paper forms or a CPA, confirm Schedule 8812 is filed.

State child credits

A growing number of states have created their own child tax credits, often modeled on the federal CTC. Notable examples:

• Colorado Child Tax Credit — Refundable, up to $1,200 per child under 6 for low-income families.
• Minnesota Child Tax Credit — Up to $1,750 per qualifying child, refundable, sliding phase-out.
• California Young Child Tax Credit — Up to $1,154 for families with a child under 6 and CalEITC eligibility.
• New York Empire State Child Credit — Up to $330 per child, refundable.
• New Mexico Child Income Tax Credit — Up to $600 per child, refundable, income-targeted.
• Oregon Kids Credit — Up to $1,000 per child under 6 for low-income filers.

Roughly 14 states had a state CTC as of 2024-2025; new states continue to add or expand programs. Check your state's department of revenue for the current rule.

Bottom line

The federal Child Tax Credit is worth up to $2,000 per qualifying child under 17, with up to $1,700 refundable. It applies whether or not you pay for child care. For most US families with young children, the CTC is the largest tax benefit the kids generate.

Stack the CTC with the CDCC and DCFSA if you also pay for daycare; both apply independently of the CTC. For the daycare-specific tax tools, see the CDCC guide and the DCFSA guide. For the bigger cost picture, see daycare cost explained. For your specific math, use the cost calculator.