Child Tax Credit 2026: Phaseout Rules, Refundability, and Calculator

Fast answer

Using the current IRS structure for 2026 planning, the Child Tax Credit is up to $2,200 per qualifying child. Up to $1,700 per qualifying child can be refundable through the Additional Child Tax Credit if earned income is high enough. The phaseout starts at $200,000 for most filers and $400,000 for married filing jointly.

Use the Child Tax Credit calculator to estimate both the nonrefundable and refundable pieces.

Important 2026 planning note

As of April 4, 2026, the IRS Child Tax Credit materials and Schedule 8812 instructions still point to the current post-2025 credit structure. This page uses that current IRS framework for 2026 planning and will be updated when the IRS publishes new Schedule 8812 instructions or changes the rules.

Main numbers to know

• Maximum Child Tax Credit: $2,200 per qualifying child
• Maximum refundable Additional Child Tax Credit: $1,700 per qualifying child
• Earned income threshold for ACTC: $2,500
• Phaseout threshold: $200,000 for most filers
• Phaseout threshold: $400,000 for married filing jointly
• Phaseout rate: $50 for each $1,000, or fraction of $1,000, above the threshold

Who qualifies for the Child Tax Credit

A qualifying child generally must be under age 17 at the end of the tax year, be claimed as a dependent, meet the relationship and residency tests, and have a valid Social Security number issued by the due date of the return. That last part matters more than many families expect. A child who otherwise qualifies may still fail the credit rules if the Social Security number requirement is not met on time.

The taxpayer side matters too. Current IRS guidance says that if you file jointly, only one spouse must have a valid Social Security number for CTC and ACTC eligibility, while the other spouse can have an SSN or ITIN issued by the due date. The cleanest way to think about this page is that the credit is not just a family-size rule. It is also an identity and filing-status rule.

Why the refundable ACTC is different from the main Child Tax Credit

The headline Child Tax Credit reduces tax liability first. That part is nonrefundable. The Additional Child Tax Credit is the piece that can still create a refund after the basic credit has already wiped out the tax liability. That refundable piece has its own limits, including the earned-income rule and the per-child refundable cap.

This is where families often get surprised. Two households with the same number of qualifying children can receive different results because one has enough tax liability to use the nonrefundable piece while the other depends more heavily on ACTC refundability. Earned income changes the answer too, which is why low tax liability does not automatically mean the same refundable result for every family.

How the phaseout works

The phaseout starts once modified adjusted gross income moves above $200,000 for most filers or $400,000 for married filing jointly. The reduction is $50 for each $1,000, or fraction of $1,000, above the threshold. That means even a relatively small step above the threshold can reduce the credit.

This is one reason year-end planning matters. If income is close to the phaseout line, a deduction or retirement contribution can sometimes preserve more of the credit than expected. The effect is not universal, but it is large enough that a family near the threshold should not assume the full child credit is locked in.

Examples

Family below the phaseout threshold

A married couple with two qualifying children and income well below $400,000 may start with a full $4,400 Child Tax Credit amount. The final split between nonrefundable and refundable pieces then depends on their tax liability and earned income.

Family above the phaseout threshold

A single filer with one qualifying child and income modestly above $200,000 may still qualify for a partial credit, but the phaseout will reduce it in $50 increments for each $1,000 or fraction above the threshold.

Low tax liability but strong earned income

A taxpayer with low tax liability may not use much of the nonrefundable piece, but can still receive refundable ACTC if earned income is high enough and the per-child refundable cap allows it.

Common mistakes

• Assuming the full $2,200 per child is always refundable.
• Ignoring the $200,000 or $400,000 phaseout threshold.
• Missing the Social Security number requirement for the taxpayer or qualifying child.
• Confusing the Child Tax Credit with the Credit for Other Dependents.
• Skipping earned income when estimating the refundable ACTC.

How the Credit for Other Dependents fits in

The Credit for Other Dependents is related, but it is not the same credit. It generally applies to dependents who do not qualify for the Child Tax Credit, including older children and certain other dependents. That credit is nonrefundable and follows its own logic. This page stays focused on the core Child Tax Credit and ACTC because that is usually the higher-value search and planning question.

Who this page is best for

This guide is most useful for parents comparing how much of the child credit will actually show up on the return, not just how much appears in a headline amount. It is especially useful for families near the phaseout line, taxpayers with low tax liability, and anyone trying to understand why the refundable result is lower than the full credit.

FAQ

Is the Child Tax Credit fully refundable?

No. The main Child Tax Credit is nonrefundable. Only the Additional Child Tax Credit can be refundable, and that part has its own limits.

What if my child has an ITIN instead of a Social Security number?

Current IRS guidance says a qualifying child generally needs a valid Social Security number to qualify for CTC or ACTC. A dependent without that SSN may still matter for the Credit for Other Dependents instead.

Should I look at credits or deductions if I am near the phaseout threshold?

Both can matter. A deduction that lowers income can sometimes preserve more of the credit if you are close to the phaseout line. That is why this topic often overlaps with year-end income and retirement planning.

Where year-end planning can still help

The most useful planning cases usually show up when income is close to the phaseout line or when the family is trying to understand how much of the credit will actually become refundable. A year-end deduction, a retirement contribution, or even timing around self-employment income can change whether more of the Child Tax Credit survives the phaseout. That does not mean every deduction creates a better result, but it does mean the credit should be viewed as part of the return rather than as a fixed family-size benefit.

This is also why the child credit belongs in broader tax planning conversations. A family near the threshold may care about the same moves that affect AGI for other reasons, and the credit can become one more reason to run the numbers instead of assuming the full amount is safe.

What usually causes the biggest surprises

The two biggest surprises are phaseout and refundability. Higher-income families are often surprised that a credit can phase down faster than expected in $50 steps, while lower-tax-liability families are often surprised that a child credit can still be limited even when the children clearly qualify. Those are very different problems, but they both come from assuming the headline credit amount tells the whole story.