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 it has been since 2018. However, this is set to change. Under current law, the credit is scheduled to drop to $1,000 per child on January 1, 2026, unless Congress passes new legislation before that date. This sunset was written into the 2017 tax law, and whether it happens depends on decisions lawmakers make in 2025.

The credit applies to children who are your dependents and under 17 years old at the end of the tax year. You claim it on your federal tax return, and it reduces the amount of tax you owe dollar-for-dollar. If the credit is larger than your tax bill, you may receive the difference as a refund, though there are limits on how much of the credit is refundable.

Because the law has not yet been finalized for 2026, the safest approach is to plan based on what you know now—the $2,000 amount—and stay aware of any changes Congress makes. Tax software and the IRS website will reflect the correct amount once it is set.

Key Takeaways

  • The child tax credit is currently $2,000 per child under 17, but is scheduled to drop to $1,000 per child starting January 1, 2026, unless Congress changes the law.
  • The credit is claimed on your federal tax return and reduces your tax bill dollar-for-dollar, with some portion potentially refundable depending on your income.
  • You must have a valid Social Security number for each child and claim them as dependents on your return to receive the credit.
  • The amount you receive may be reduced if your modified adjusted gross income exceeds certain thresholds, which vary by filing status.

Income limits and phase-out rules for 2026

The child tax credit begins to reduce if your income exceeds a threshold that depends on how you file. For married couples filing jointly, the threshold is $400,000. For single filers and heads of household, it is $200,000. For married filing separately, it is $200,000. Once your income crosses that line, the credit drops by $50 for every $1,000 (or fraction thereof) of income above the threshold.

This means if you are a single parent earning $205,000 and have one child, your $2,000 credit would be reduced by $50, leaving you with $1,950. The phase-out is calculated on your modified adjusted gross income, which is your adjusted gross income plus certain add-backs—your tax return or a tax professional can help you determine this figure.

These income thresholds have remained the same since 2018 and are not adjusted for inflation, so more families may find themselves subject to the phase-out each year as incomes rise.

Refundable versus non-refundable portions

Part of the child tax credit is refundable, meaning you can receive it even if you owe no tax. The refundable portion is called the Additional Child Tax Credit, and for 2026 it is limited to the lesser of $1,700 per child or 15 percent of your earned income above $2,500. This limit may also change if Congress acts on the scheduled sunset.

The non-refundable portion—the amount that can only reduce your tax bill to zero but not create a refund—is the difference between the full credit and the refundable amount. For example, if your full credit is $2,000 and the refundable portion is $1,700, then $300 is non-refundable.

Earned income includes wages, salaries, and self-employment income. If your earned income is very low, the refundable portion may be smaller than $1,700. A tax professional or tax software can calculate the exact refundable amount based on your situation.

What documentation you need to claim the credit

To claim the child tax credit, you must have a valid Social Security number for each child you are claiming. The number must be issued by the Social Security Administration and valid for work in the United States. You will enter this number on your tax return, and the IRS matches it against Social Security Administration records.

You must also claim the child as your dependent. This means the child lived with you for more than half the year (with limited exceptions for temporary absences), you provided more than half their financial support, and they are a U.S. citizen, national, or resident alien. The child must be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these.

Keep records of the child's birth certificate or other proof of age and relationship, though you do not file these with your return. The IRS may request them if your return is examined.

How the credit works on your tax return

You claim the child tax credit on Schedule 8812 (Additional Child Tax Credit) and Form 1040, the main federal income tax form. If you use tax software, it will walk you through the questions and calculate the credit automatically. If you file by hand or with a tax professional, they will complete these forms for you.

The credit is claimed for the tax year in which the child turns 17 or younger. Once a child reaches 17, you can no longer claim the child tax credit for that child, though you may be able to claim a different credit—the Credit for Other Dependents—which is $500 per dependent and has different rules.

You claim the credit on the return you file for the year the child was born or turned 17, using the child's age as of December 31 of that tax year. If a child is born on December 31, they count as age 1 for that year's credit.

What happens if Congress changes the law before 2026

Congress has several options as the 2026 sunset approaches. It could extend the current $2,000 amount indefinitely, make it permanent with modifications, let it expire to $1,000, or pass a new law with a different amount altogether. Lawmakers have discussed various proposals, but no final decision has been made.

The most likely time for Congress to act is late 2025, as part of broader tax legislation. If you are planning your finances or estimating your tax bill, it is reasonable to assume the $2,000 amount will continue, but be prepared for the possibility that it could change. Tax software and the IRS will update their guidance as soon as any new law is signed.

If you have questions about how a change would affect your specific situation, a tax professional can help you model different scenarios and plan accordingly.

Frequently Asked Questions

Can I claim the child tax credit if the child does not live with me full-time?

The child must live with you for more than half the year to count as your dependent. If the child lives with another parent or guardian for more than half the year, that person claims the credit. If you share custody and the child lives with each parent equally, the parent with the higher income typically claims the credit, unless you have a written agreement saying otherwise.

What if my child was born in December 2026?

A child born in December 2026 counts as age 0 for the 2026 tax year and is under 17, so you can claim the credit on your 2026 return filed in 2027. The child's age is determined as of December 31 of the tax year.

Do I lose the credit if my income is too high?

The credit does not disappear at high income levels, but it phases out. For every $1,000 of income above the threshold for your filing status, the credit reduces by $50. If your income is very high, the credit could reduce to zero, but this happens gradually, not all at once.

Can I claim the credit for a grandchild or foster child?

Yes, if the child lived with you for more than half the year, you provided more than half their support, and they are your grandchild, foster child, or other may have access to relative. The child must also have a valid Social Security number and be a U.S. citizen, national, or resident alien.

What is the difference between the child tax credit and the Additional Child Tax Credit?

The child tax credit is the full $2,000 amount. The Additional Child Tax Credit is the refundable portion—the part you can receive as a refund even if you owe no tax. It is limited to $1,700 per child (or 15 percent of earned income above $2,500, whichever is less) for 2026.