The Child Tax Credit (CTC) for 2026 is $2,200 per qualifying child under age 17 at the end of the tax year. Up to $1,700 of that credit per child is refundable — meaning it can be paid to you even if the credit exceeds what you owe in federal income tax. These amounts come from Rev. Proc. 2025-32, §4.05, which implements the One Big Beautiful Bill Act (P.L. 119-21).
Key Numbers for 2026
| Item | Amount |
|---|---|
| Credit per qualifying child | $2,200 |
| Refundable maximum (ACTC) per child | $1,700 |
| Phase-out threshold — single / HOH / MFS | $200,000 MAGI |
| Phase-out threshold — married filing jointly | $400,000 MAGI |
| Phase-out reduction | $50 per $1,000 (or fraction) of MAGI above threshold |
| ACTC formula | 15% of earned income over $2,500, capped at $1,700 per child |
Source: Rev. Proc. 2025-32, §4.05; IRC §24.
Who Qualifies
A qualifying child for the CTC must:
- Be under age 17 at the end of 2026
- Be your child, stepchild, foster child, sibling, or descendant of any of these
- Have lived with you for more than half the year
- Not have provided more than half of their own support
- Have a valid Social Security number
Worked Example: $80,000 MFJ, Two Children
A married couple filing jointly with $80,000 AGI and two qualifying children under 17:
- Total CTC: 2 × $2,200 = $4,400
- MAGI ($80,000) is below the $400,000 phase-out — no phase-out applies
- Federal income tax before credits: $80,000 − $32,200 = $47,800 taxable
- 10% × $24,800 = $2,480; 12% × $23,000 = $2,760; total = $5,240
- Nonrefundable CTC applied: min($4,400, $5,240) = $4,400
- Tax after CTC: $5,240 − $4,400 = $840
The full $4,400 is used against tax liability (nonrefundable portion), leaving no refundable ACTC to claim because the credit was fully absorbed. If their tax before credits had been only $2,000, they could claim $2,000 nonrefundable and potentially up to $2,400 as a refundable ACTC (if earned income supports it).
Phase-Out Example: $420,000 MFJ, Two Children
MAGI: $420,000; excess over $400,000 = $20,000; $20,000 ÷ $1,000 = 20 increments; reduction = 20 × $50 = $1,000. Remaining credit: $4,400 − $1,000 = $3,400.
At $444,000 MFJ (excess = $44,000; reduction = $4,400), the credit is fully phased out for two children.
The Refundable Portion: Additional Child Tax Credit
When the nonrefundable CTC exceeds your federal income tax, the excess may be refundable as the Additional Child Tax Credit (ACTC):
ACTC = 15% × (earned income − $2,500), capped at $1,700 per child
Example: A single parent with $25,000 earned income and one child:
- CTC: $2,200
- Income tax before credits: approximately $0 (taxable income after $16,100 standard deduction = $8,900; tax = $890)
- Nonrefundable portion: min($2,200, $890) = $890 (wipes out tax)
- Remaining credit: $2,200 − $890 = $1,310 potentially refundable
- ACTC: 15% × ($25,000 − $2,500) = $3,375 → capped at $1,700 per child
- Since $1,310 is below $1,700, the full $1,310 excess is refundable
Note: the refundable amount at filing does not appear in your paycheck withholding. It arrives as a refund when you file.
Claiming It on Your W-4
To account for the CTC in your withholding, enter the number of qualifying children × $2,200 in Step 3 of Form W-4. On a biweekly paycheck, each $2,200 reduces withholding by $84.62 per check. Two children = $169.23 less withheld per check.
For a complete tax estimate including the credit, use the federal income tax calculator.