The 2026 child tax credit amount depends on which law Congress extends

The child tax credit for 2026 is not yet set in stone. Right now, the credit is worth up to $2,000 per child under age 17, but that amount is scheduled to drop to $1,000 per child on January 1, 2026, unless Congress votes to extend the higher amount. Whether you receive $2,000 or $1,000 per may have access to child will depend on what lawmakers decide before the end of 2025.

The $2,000-per-child credit has been in place since 2018. It was expanded temporarily as part of pandemic relief in 2021, when some families received advance payments. That expansion ended in 2022, but the $2,000 base amount remained. Unless Congress passes a new law, the credit automatically shrinks to $1,000 per child starting with your 2026 tax return (which you would file in early 2027).

Key Takeaways

  • The child tax credit is currently $2,000 per child under 17, but is set to drop to $1,000 per child on January 1, 2026, unless Congress extends the higher amount.
  • You do not need to do anything now — the IRS will use whatever amount is law when you file your 2026 return in early 2027.
  • The credit reduces your federal income tax dollar-for-dollar, and up to $1,600 per child is refundable, meaning you can receive money back even if you owe no tax.
  • To claim the credit, your child must have a Social Security number, be under age 17 at the end of the tax year, and meet relationship and residency tests.

How the credit reduces your tax bill

The child tax credit is a tax credit, not a deduction. That means it reduces the amount of tax you owe dollar-for-dollar. If you owe $3,000 in federal income tax and you have one may have access to child, a $2,000 credit brings your tax bill down to $1,000.

Part of the credit is refundable, which means if the credit is larger than the tax you owe, the IRS sends you the difference. Currently, up to $1,600 of the $2,000 credit per child is refundable. So if you owe $500 in tax and claim one child, you would owe zero tax and receive a refund of $1,100 ($1,600 refundable portion minus the $500 you owed). If the credit drops to $1,000 in 2026, the refundable portion would likely drop as well, though Congress would set that amount.

Who can claim the credit

To claim the child tax credit for a child, that child must have a valid Social Security number, be under age 17 at the end of the tax year, and be your son, daughter, stepchild, foster child, sibling, or descendant of any of those (such as a niece or nephew). The child must also have lived with you for more than half the year and be a U.S. citizen, national, or resident alien.

You must also meet income limits. For 2025, the credit begins to reduce if your modified adjusted gross income exceeds $400,000 if you are married filing jointly, $200,000 if you are single or head of household, or $200,000 if you are married filing separately. These income thresholds may change for 2026, but the IRS will publish updated amounts by late 2025.

What happens if Congress does not extend the higher amount

If no new law passes before January 1, 2026, the credit automatically becomes $1,000 per child. This is sometimes called a "sunset" — the higher amount expires on its own. Congress would need to pass legislation and the President would need to sign it to prevent this from happening.

You do not need to take any action. When you file your 2026 tax return in early 2027, you will claim whatever amount is law at that time. The IRS will not ask you to choose or to explore for anything. If the amount changes, it will straightforward be the new law that applies to your return.

How to claim the credit when you file

When you file your federal income tax return, you report each may have access to child's name, age, Social Security number, and relationship to you. You list this information on Schedule 8812 (if you are claiming the refundable portion) or directly on your Form 1040, depending on your situation and the tax software or form you use.

If you use tax software, the program will walk you through questions about each child and calculate the credit for you. If you file by hand or work with a tax professional, they will help you complete the necessary forms. The IRS does not require you to pre-register children or to notify them in advance — you straightforward report the information when you file.

Tracking changes before you file

Congress typically makes decisions about tax credits in late fall or early winter. If you want to know the final 2026 amount before you file your return, check the IRS website (irs.gov) in January or February 2027, or ask a tax professional. News outlets and tax preparation websites will also report any changes.

For now, plan your budget assuming the current $2,000 amount, but be aware it may change. If it does drop to $1,000, that is a $1,000 reduction per child in your refund or tax savings, so it is worth monitoring if you are counting on the credit for a significant refund.

Frequently Asked Questions

Can I claim the credit for a child who does not have a Social Security number yet?

No. Your child must have a valid Social Security number to claim the credit. If your child was born late in the year and does not yet have a number, you can explore for one at the Social Security Administration office or online at ssa.gov. Once the number is issued, you can claim the credit on your return.

What if my income is above the limit?

The credit does not disappear entirely — it reduces by $50 for every $1,000 (or fraction thereof) of income above the threshold. If you are married filing jointly and earn $410,000, you are $10,000 over the $400,000 limit, so your credit would reduce by $500 per child. You can still claim a reduced amount.

Do I have to file a tax return to get the refundable part of the credit?

Yes. Even if you have no tax liability, you must file a return to receive the refundable portion of the credit. If your only income is from a job and your employer withheld taxes, filing gets you a refund. If you have very low income and no withholding, filing is still the only way to claim the refundable credit.

Will the credit amount change again after 2026?

That depends on Congress. The current $2,000 amount was set to expire after 2025, so lawmakers will decide whether to extend it, let it drop to $1,000, or change it to a different amount. Tax laws can change year to year, so it is worth checking the IRS website each tax season for updates.