The Child Tax Credit amount in 2026 depends on whether Congress extends the current law or lets it expire

The Child Tax Credit is a dollar-for-dollar reduction in the federal income tax you owe for each may have access to child under 17. Right now, in 2025, the credit is worth $2,000 per child. But that amount is set to change on January 1, 2026, unless Congress votes to extend the current rules.

If no new law passes, the credit will drop to $1,000 per child starting in 2026 — a reduction that would affect millions of families filing their 2026 tax returns in early 2027. Congress has not yet decided whether to extend the $2,000 amount, so the actual value you receive depends on legislation that may still be passed.

The credit also has income limits that determine how much you can claim. Those limits are adjusted each year for inflation, so the exact thresholds for 2026 will be slightly higher than they are now, but the IRS has not yet published the 2026 figures.

Key Takeaways

  • The Child Tax Credit is currently $2,000 per child under 17, but this amount is scheduled to drop to $1,000 per child on January 1, 2026, unless Congress extends it.
  • The credit reduces your federal income tax dollar-for-dollar, so a $2,000 credit means $2,000 less in taxes owed.
  • Your income determines how much of the credit you can claim, with higher earners receiving a smaller credit or none at all.
  • The IRS will publish the 2026 income limits and any other updates by late 2025, once Congress's final decision is known.

How the $2,000 credit works right now

Under current law, you can claim $2,000 for each child who is under 17 at the end of the tax year and whom you claim as a dependent. The child must be a U.S. citizen, national, or resident alien with a valid Social Security number. The credit applies to biological children, adopted children, stepchildren, and foster children who live with you for the entire year.

The credit is refundable up to a limit, which means that if the credit is larger than the tax you owe, the IRS may send you the difference as a refund. In 2025, up to $1,700 of the $2,000 credit can be refunded to you. The remaining $300 is non-refundable, so it can only reduce your tax bill to zero but cannot generate a refund beyond that.

You claim the credit on your federal tax return using Form 1040 and Schedule 8812. The IRS uses your Social Security number and the child's Social Security number to verify the claim, so make sure both numbers are correct on your return.

Income limits that reduce or eliminate the credit

The Child Tax Credit begins to phase out — meaning it gets smaller — once your income exceeds a certain threshold. For the 2025 tax year (filed in 2026), the phase-out begins at $400,000 for married couples filing jointly and $200,000 for single filers and heads of household. For each $1,000 (or fraction of $1,000) of income above the threshold, the credit is reduced by $50.

This means that if you are a single filer earning $210,000, your income is $10,000 over the $200,000 threshold. That $10,000 is rounded up to the next $1,000 increment, so your credit is reduced by $50 × 11 = $550. Instead of claiming the full $2,000 per child, you would claim $1,450 per child.

The IRS will adjust these income thresholds for inflation in 2026, so the exact numbers will be slightly higher. The agency typically publishes the updated thresholds in late 2025.

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

If no law is passed before January 1, 2026, the credit will automatically revert to $1,000 per child. This is sometimes called a "sunset" — the higher amount expires and the law returns to an earlier version. The refundable portion would also change, though the exact details depend on how the law is written.

A reduction from $2,000 to $1,000 would mean $1,000 less in tax relief per child for families who claim the credit. For a family with two children, that would be $2,000 less in total credit. The impact would show up on tax returns filed in early 2027 for the 2026 tax year.

Congress has extended the $2,000 amount before, most recently in 2021, but there is no may provide it will do so again. The decision typically comes late in the year, sometimes after the new year has already begun.

When the IRS will announce the 2026 amounts

The IRS publishes inflation-adjusted tax figures and thresholds in late October or early November each year. For 2026, you can expect the agency to release the updated income limits and any other changes by November 2025. If Congress passes a law extending the $2,000 credit, that information will be included in the announcement.

You can find the 2026 figures on the IRS website (irs.gov) under "Tax Year 2026 Tax Tables and Related Information" once they are published. The agency also sends updates to tax software companies, so your tax preparation software will reflect the correct amounts when you file.

Until the announcement is made, you should plan your 2026 budget assuming the credit could be either $2,000 or $1,000 per child. If Congress extends the higher amount, you will receive more than you expected. If it does not, you will already be prepared for the lower amount.

Other credits and deductions that work alongside the Child Tax Credit

The Child Tax Credit is separate from the Child and Dependent Care Credit, which covers expenses for childcare while you work. You can claim both credits in the same year if you meet the requirements for each one. The Child and Dependent Care Credit is worth up to $1,050 per child (or $2,100 for two or more children) and is based on what you actually spent on care.

You may also be able to claim the Earned Income Tax Credit (EITC) if your income is below certain limits. The EITC is a separate credit that does not reduce the Child Tax Credit, and many families claim both. The EITC is refundable, meaning it can result in a refund even if you owe no tax.

Some families also claim the Dependent Exemption or other deductions, though the rules changed significantly in 2017. Your tax software or a tax professional can help you determine which credits and deductions you are may have access to to claim.

Frequently Asked Questions

Can I claim the Child Tax Credit if my child does not have a Social Security number?

No. Your child must have a valid Social Security number to be claimed as a dependent and to receive the Child Tax Credit. If your child was born in the United States, you can obtain a Social Security number from the Social Security Administration. If your child was born outside the U.S., they must be a U.S. citizen, national, or resident alien to may have access to.

What if I share custody of a child with another parent?

Only one parent can claim the Child Tax Credit for each child in a given year. If you and the other parent share custody, you must decide between yourselves who will claim the credit, or you can alternate years. The IRS will reject a return if two people try to claim the same child. If you cannot agree, the parent with the higher income typically has the right to claim the child unless a court order says otherwise.

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

Yes. Even if you earned very little income and would not normally owe taxes, you must file a federal tax return to receive the refundable portion of the Child Tax Credit. The IRS does not send the refund unless you file. If you are unsure whether you need to file, the IRS website has a tool to help you determine your filing requirement.

Will the credit change if my income changes in 2026?

The credit is based on your income for the entire 2026 tax year, not your income at any single point during the year. If your income changes during 2026, you will report your total income for the year on your 2026 tax return filed in 2027, and the credit will be calculated based on that total. If you expect a significant change in income, you may want to speak with a tax professional about whether to adjust your withholding.

What if Congress extends the credit but changes the income limits?

Congress could extend the $2,000 amount while also changing the income thresholds where the credit begins to phase out. Any changes would be announced by the IRS along with the 2026 tax figures. Until the announcement is made, you should assume the current income limits will be adjusted only for inflation, not changed by new legislation.