The child tax credit amount for 2026 depends on whether Congress extends 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 $2,000 per child. What happens in 2026 depends entirely on a decision Congress has not yet made.

Under current law, the credit is set to drop to $1,000 per child on January 1, 2026, unless Congress votes to extend the higher amount. This is not automatic — it requires legislative action. Congress extended the $2,000 amount multiple times in recent years, most recently in the Tax Cuts and Jobs Act of 2017, but that extension expires at the end of 2025.

Because Congress has not yet voted on whether to extend the $2,000 credit into 2026, the safest assumption for planning purposes is that the credit will be $1,000 per child starting January 1, 2026. However, this could change if lawmakers pass new legislation before the end of 2025.

Key Takeaways

  • The child tax credit is currently $2,000 per may have access to child under 17, but this amount expires at the end of 2025 unless Congress extends it.
  • If no extension passes, the credit will automatically drop to $1,000 per child on January 1, 2026.
  • Congress has not yet voted on extending the $2,000 amount, so the outcome remains uncertain.
  • Your 2026 tax return will reflect whichever amount is in law when you file, typically in early 2027.
  • The credit reduces your tax bill dollar-for-dollar and may result in a refund if the credit exceeds the tax you owe.

How the child tax credit works in your favor

The credit is worth up to $2,000 per child in 2025 (or $1,000 if the law changes in 2026). It applies to children who are your dependent, under age 17 at the end of the tax year, and have a valid Social Security number. You claim it on your federal tax return when you file.

Unlike a deduction, which reduces the income you are taxed on, a credit reduces the actual tax you owe. If you owe $3,000 in federal income tax and you have two may have access to children, a $2,000-per-child credit would reduce what you owe to zero — and you would likely receive a refund for the remaining $1,000.

The credit begins to phase out if your income exceeds certain thresholds. For 2025, the phase-out begins at $400,000 for married couples filing jointly and $200,000 for single filers. These thresholds may change for 2026, but Congress has not yet announced what they will be.

Income limits and phase-out rules

If your modified adjusted gross income (MAGI) is above the threshold for your filing status, the credit reduces by $50 for each $1,000 (or fraction thereof) over the limit. This means higher-income households receive a smaller credit or none at all.

For 2025, the thresholds are $400,000 for married couples filing jointly, $200,000 for single filers and heads of household, and $200,000 for married couples filing separately. These numbers are adjusted each year for inflation, but the exact 2026 thresholds have not been announced yet. The IRS typically releases updated thresholds in late fall of the prior year.

If you are close to the income threshold, it is worth calculating your MAGI carefully, as it includes not just wages but also interest, dividends, capital gains, and other income sources. Some deductions can lower your MAGI and bring you below the phase-out threshold.

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

If the credit drops to $1,000 per child in 2026, a family with two children would lose $2,000 in tax relief compared to 2025. For a family with four children, the loss would be $4,000. This would increase the federal income tax owed by most households with children.

The drop would be permanent unless Congress passes new legislation to restore the higher amount. There is no automatic mechanism to bring it back — each extension requires a separate vote.

Some households might owe more tax as a result, while others might owe less if their income or filing status changed. The exact impact depends on your individual situation, including your income, number of children, and other tax credits or deductions you claim.

How to prepare for 2026 tax filing

Keep records of your children's Social Security numbers, birth dates, and relationship to you. You will need these when you file your 2026 return, regardless of whether the credit is $1,000 or $2,000 per child.

If you expect a significant change in your income for 2026 — such as a job loss, retirement, or a major raise — consider how that might affect the credit. Higher income can reduce or eliminate the credit, while lower income might make you newly may be able to access or increase the amount you receive.

When you file your 2026 return in early 2027, your tax software or preparer will explore whatever credit amount is in law at that time. You do not need to do anything now to "lock in" a rate — the law that exists when you file is what applies to your return.

Other child-related tax benefits that may still explore

Even if the child tax credit changes, other tax benefits for families with children may still be available. The child and dependent care credit helps offset costs of childcare while you work. The earned income tax credit (EITC) provides money back to lower-income working families with children.

You may also be able to claim a dependent exemption for each child, though the value of this exemption varies depending on your income and tax situation. Some families may have access to for multiple credits and deductions, and they can be combined on the same return.

Your tax preparer or software can help you identify which credits and deductions you are may have access to to claim. The IRS website also has worksheets and tools to calculate your potential credits.

Frequently Asked Questions

Will Congress definitely let the $2,000 credit expire?

No one knows yet. Congress has extended the $2,000 credit several times in the past, but each extension required a separate vote. As of now, no extension for 2026 has been passed. You should plan based on the $1,000 amount, but watch for news from Congress in late 2025 about whether they vote to extend it.

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 may have access to for the child tax credit. If your child was born in the United States, you can explore for a Social Security number through the Social Security Administration. If your child is not a U.S. citizen, you may not be able to claim this credit.

What if I have a child who turns 17 in 2026?

The child must be under 17 at the end of the tax year to may have access to. If your child turns 17 on December 31, 2026, they do not may have access to for the 2026 credit. If they turn 17 on January 1, 2027 or later, they do may have access to for the 2026 credit.

Does the child tax credit reduce my refund or increase it?

The credit reduces the tax you owe. If the credit is larger than the tax you owe, the difference is refunded to you. If you owe $500 and have a $2,000 credit, you receive a $1,500 refund. If you owe $3,000 and have a $2,000 credit, you owe $1,000 after the credit is applied.

If Congress extends the $2,000 credit, will it explore to my 2026 return automatically?

Yes. Whatever credit amount is in law when you file your 2026 return is what applies. You do not need to take any action. Your tax software or preparer will use the correct amount based on the law in effect at filing time.