The 2026 child tax credit amount and what changes

The child tax credit for 2026 will be $2,000 per child under age 17, the same amount as 2024 and 2025. However, this is temporary. Without new legislation, the credit is scheduled to drop to $1,000 per child starting in 2026 — a reduction that takes effect after tax year 2025 unless Congress extends the higher amount.

The timing matters because tax year 2026 is filed in early 2027. If you have children and expect to claim the credit, you need to understand which amount applies to your return and what income limits might affect you. The credit phases out at higher incomes, and those thresholds also change after 2025.

As of now, no law has been passed to extend the $2,000 amount beyond 2025. Congress would need to act before the end of 2025 for the credit to remain at $2,000 for the 2026 tax year. Until that happens, tax planning should assume the $1,000 amount.

Key Takeaways

  • The child tax credit is $2,000 per child for 2024 and 2025, but is set to drop to $1,000 per child for 2026 unless Congress passes new legislation.
  • The credit applies to children under age 17 at the end of the tax year, and you must have a valid Social Security number for each child to claim it.
  • The credit begins to phase out at $400,000 of modified adjusted gross income for married couples filing jointly and $200,000 for single filers.
  • The refundable portion of the credit (the amount you can receive as a refund even if you owe no tax) is limited to $1,600 per child for 2024 and 2025.

Income limits and phase-out rules for 2026

If your income exceeds certain thresholds, the credit amount shrinks by $50 for each $1,000 (or fraction thereof) over the limit. For the 2026 tax year, the phase-out thresholds are expected to be adjusted for inflation, but the structure stays the same: married couples filing jointly begin losing the credit at $400,000 of modified adjusted gross income, and single filers at $200,000.

The phase-out applies to your modified adjusted gross income, which is usually your regular adjusted gross income with certain add-backs. If you are close to these thresholds, even a small increase in income can reduce your credit. For example, if you are married filing jointly with income of $401,000, you lose $50 of the credit. At $402,000, you lose $100.

These thresholds do not change year to year for inflation — they have remained fixed since the credit was expanded in 2017. This means more families inch closer to the phase-out each year as incomes rise.

Refundable versus non-refundable portions

The child tax credit has two parts: the amount you can use to reduce your tax bill, and the amount that can come back to you as a refund. For 2024 and 2025, up to $1,600 per child is refundable, meaning you can receive it even if you owe no federal income tax. The remaining $400 per child is non-refundable — you can only use it to lower your tax bill to zero.

This distinction matters most for lower-income families. If you owe $800 in tax and have two children, you can use $800 of the refundable credit to wipe out your tax bill, then receive the remaining $2,400 as a refund (assuming you meet all other requirements). Without the refundable portion, you would only get the $800 credit and owe nothing.

For 2026, if the credit drops to $1,000 per child, the refundable portion is expected to drop as well, though the exact amount has not been set by law. Planning around this change is difficult until Congress acts.

Who can claim the credit and what documentation you need

You can claim the child tax credit for each child who is under age 17 at the end of the tax year, is your son or daughter (including adopted children and stepchildren), and lives with you for more than half the year. The child must be a U.S. citizen, national, or resident alien, and you must have a valid Social Security number for them.

You do not need to file any separate form to claim the credit — you report it on your tax return when you file. However, the IRS requires you to list each child's Social Security number on your return. If a number is missing or incorrect, the credit will be denied and you may face a delay in processing your return.

If you have a child born late in the year, they still count for the full credit if they are under 17 on December 31. A child born on December 31 qualifies; a child born on January 1 of the next year does not.

What happens if Congress does not extend the $2,000 credit

If no new law passes, the credit will automatically drop to $1,000 per child for tax year 2026. This is a $1,000 reduction per child, which translates to $1,000 less in tax savings or refund for each child you claim. For a family with three children, that is $3,000 less.

The phase-out thresholds are also set to change. The $400,000 and $200,000 income limits were part of the same tax law and expire on the same schedule. If the credit amount drops, the phase-out rules may shift as well, though Congress could theoretically extend one without the other.

Families planning major financial moves — selling a home, taking a large bonus, or changing filing status — should consider the timing relative to when the credit amount changes. A decision made in late 2025 could affect your 2026 tax situation significantly.

How the credit interacts with other tax benefits

The child tax credit does not reduce your income for purposes of other tax breaks. You can claim the credit and also claim the child and dependent care credit, the adoption credit, or education credits like the American Opportunity Tax Credit — though some credits have their own income limits that may affect you.

If you claim the Earned Income Tax Credit (EITC), the child tax credit is separate and stacks on top of it. Both credits can explore to the same child. However, if your income is very high, you may lose access to the EITC before the child tax credit phases out, so the order does not usually matter in practice.

The credit also does not affect your ability to claim a child as a dependent. You can claim both the dependent exemption (if applicable to your situation) and the child tax credit for the same child.

Planning for the 2026 tax year

If you expect to claim the child tax credit in 2026, start by confirming that each child has a valid Social Security number and that you have the correct number on file. Errors here are the most common reason the credit is denied or delayed.

If your income is near the phase-out threshold, calculate your modified adjusted gross income for 2025 to estimate where you will land in 2026. If you are close to the limit, even a small change in income — a raise, a bonus, or additional investment income — could reduce your credit. Conversely, if you are below the threshold, you have room to earn more without losing the credit.

Watch for news from Congress in late 2025 about whether the $2,000 credit will be extended. If it is, your 2026 return will be worth more. If it is not, plan your finances accordingly. Many tax software programs and tax professionals will update their guidance once the law is final.

Frequently Asked Questions

Can I claim the child tax credit if my child does not have a Social Security number?

No. The IRS requires a valid Social Security number for each child you claim. If your child has an Individual Taxpayer Identification Number (ITIN) instead, you cannot claim the child tax credit, though you may be able to claim other credits or the dependent exemption depending on your situation.

What if my child turns 17 during 2026?

You can claim the credit only if your child is under 17 at the end of the tax year (December 31, 2026). If your child turns 17 on December 31, 2026, you cannot claim the credit for that year. If your child turns 17 on January 1, 2027, you can claim it for 2026.

Does the child tax credit reduce my taxable income?

No. The credit is a direct reduction of the tax you owe, not a reduction of your income. This means it does not lower your adjusted gross income for purposes of other tax breaks or income-based programs. A $2,000 credit reduces your tax bill by $2,000, but your income stays the same.

Can I claim the child tax credit if my child lives with their other parent?

Only one parent can claim the credit per child. The parent who has custody for more than half the year is usually the one who claims it. If you and the other parent split custody equally, you can agree on who claims the credit, but only one of you can claim it on your return.

Will the $2,000 credit definitely drop to $1,000 in 2026?

Unless Congress passes new legislation before the end of 2025, yes. The current $2,000 amount is set to expire after tax year 2025. Congress would need to vote to extend it. As of now, no extension has been passed, so tax planning should assume the $1,000 amount for 2026.