What Is the Child Tax Credit and How Is It Calculated?
The Child Tax Credit (CTC) is a US federal tax credit worth up to $2,200 per qualifying child under age 17 for the 2026 tax year. It directly reduces your income tax bill dollar for dollar, and part of it can be refunded as the Additional Child Tax Credit (ACTC).
The formula is: Credit = max(0, (children × $2,200 + other dependents × $500) − $50 × ⌈(AGI − threshold) ÷ $1,000⌉), where AGI is adjusted gross income and the threshold is $200,000 ($400,000 if married filing jointly). The refundable ACTC is the lesser of the unused credit, $1,700 per child, and 15% × (earned income − $2,500). The One Big Beautiful Bill Act of 2025 raised the credit from $2,000 to $2,200 and made the thresholds permanent.
According to the IRS, a qualifying child must be under 17 at the end of the tax year, be claimed as your dependent, have lived with you for more than half the year, and have a valid Social Security number. Dependents who do not qualify, such as children aged 17 or older, may qualify you for the $500 Credit for Other Dependents.
How to Use This Child Tax Credit Calculator
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- Filing status: Sets the income threshold where the phase-out begins ($400,000 for married filing jointly, $200,000 for everyone else).
- Children under 17: Qualifying children eligible for the full $2,200 credit.
- Other dependents: Children 17 or older and other relatives, worth $500 each as a nonrefundable credit.
- Adjusted gross income: Line 11 of Form 1040. Used for the phase-out.
- Earned income: Wages and net self-employment earnings. Used to limit the refundable ACTC.
- Income tax before credits: Your tax from Form 1040 before credits. The credit reduces this first; only unused credit can be refunded.
This is a US-only credit. Other countries run different child benefits, such as the Canada Child Benefit and UK Child Benefit, which are income-tested payments rather than tax credits and are not modelled here.
Child Tax Credit Amounts and Limits by Year
| Item | 2024 | 2026 |
|---|---|---|
| Credit per child under 17 | $2,000 | $2,200 |
| Refundable limit (ACTC) per child | $1,700 | $1,700 |
| Phase-out start (single / joint) | $200,000 / $400,000 | $200,000 / $400,000 |
| Earned income floor for ACTC | $2,500 | $2,500 |
| Credit for other dependents | $500 | $500 |
This calculator gives an estimate. Amounts for 2026 may be adjusted by the IRS; confirm against Schedule 8812 instructions before filing.
Frequently Asked Questions
How much is the child tax credit for 2026?
The 2026 Child Tax Credit is up to $2,200 per qualifying child under age 17. Up to $1,700 per child is refundable as the Additional Child Tax Credit. The credit phases out above $200,000 of income ($400,000 for married couples filing jointly).
What income is too high for the child tax credit?
The credit is reduced by $50 for every $1,000 of adjusted gross income over $200,000 (single, head of household) or $400,000 (married filing jointly). A family with one child is fully phased out at about $244,000 single or $444,000 joint.
Is the child tax credit refundable?
Partly. The refundable portion, the Additional Child Tax Credit (ACTC), is limited to $1,700 per child and to 15% of earned income above $2,500. It only applies when the credit exceeds your income tax, and you need a valid Social Security number for each child.
What is the difference between the child tax credit and the child and dependent care credit?
The Child Tax Credit is a flat amount per child under 17 and does not depend on childcare costs. The Child and Dependent Care Credit reimburses a percentage of work-related care expenses, up to $3,000 for one child or $6,000 for two or more.