The Child Tax Credit is $2,200 per qualifying child under 17 for the 2026 tax year, and up to $1,700 of that is refundable. The full credit starts phasing out at $200,000 of income for single filers and $400,000 for married joint filers. The One Big Beautiful Bill Act made these numbers permanent in July 2025, and the IRS will adjust the total for inflation going forward.
The short answer. The details below explain what “refundable” actually means for your refund, who counts as a qualifying child, and the rules that trip up hourly workers most often.
Quick reference
| Item | 2026 Amount |
| Maximum credit per child | $2,200 |
| Refundable portion (ACTC) | Up to $1,700 |
| Minimum earned income for refundable portion | $2,500 |
| Phase-out starts (single/HoH) | $200,000 |
| Phase-out starts (married joint) | $400,000 |
| Phase-out rate | $50 credit reduction per $1,000 over threshold |
| Other Dependent Credit (ODC) | $500 (non-refundable) |
| Required IDs | Child SSN + at least one parent SSN |
Why “refundable” matters more than the headline number
A non-refundable credit can bring your tax bill down to zero and no further. A refundable credit pays you cash even if you owed nothing.
The $2,200 CTC has two parts. Up to $500 can only offset tax you owe. Up to $1,700 can come back as a refund check. That’s what the Additional Child Tax Credit (ACTC) is.
Take a retail worker making $34,000 a year with one kid. Before credits, they probably owe almost no federal income tax. Without the refundable portion, the CTC would stop at whatever small amount of tax was owed (maybe $400), and the rest would vanish. With the refundable portion, they get up to $1,700 of it back in cash on top of zeroing out the tax bill.
The $2,500 earned income rule is the gate to the refundable part. You need at least $2,500 in earned income during the year to access ACTC. Below that, the refundable portion is zero even if you have qualifying kids. Earned income means wages, salary, tips, or self-employment profit. Unemployment doesn’t count. Social Security doesn’t count. Investment income doesn’t count.
Who counts as a qualifying child
The child has to pass all of these tests: under 17 at year end (so born 2010 or later), your son, daughter, stepchild, foster child, sibling, half-sibling, stepsibling, or descendant of any of those (grandchild, niece, nephew). Lived with you more than half the year. Didn’t provide more than half their own support. U.S. citizen, national, or resident alien. Has a valid Social Security number issued before the tax return due date (ITINs stopped working for CTC in 2025). And you claim them as a dependent on your return.
Kids who are 17 or older can still get you the $500 Other Dependent Credit (ODC), which covers older teens, full-time college students through 23, elderly parents you support, and some other dependents. It’s non-refundable.
The phase-out math
If your AGI is over $200,000 single or $400,000 married joint, your credit shrinks by $50 for every $1,000 over the threshold.
A married couple with two kids and $410,000 AGI: $10,000 over the limit, 10 × $50 equals $500 reduction. Total credit goes from $4,400 to $3,900.
A single parent with two kids and $230,000 AGI: $30,000 over the limit, 30 × $50 equals $1,500 reduction per child claimed. Total drops from $4,400 to $1,400.
This barely touches most retail and service workers. It mostly matters for dual-income professional households.
How to claim it
CTC and ACTC both go on Schedule 8812, attached to Form 1040. Tax software fills it in automatically when you enter your kids. Paper filers need the form and the worksheet.
The process:
- Make sure each child has a valid SSN.
- Gather your W-2s and any 1099s.
- Start your return in any e-filing platform (IRS Direct File, Free File, H&R Block, TurboTax, a VITA volunteer).
- Enter each dependent child. The software asks age, relationship, residency, SSN.
- Schedule 8812 auto-populates.
- Verify the refundable portion on line 27 of Form 1040.
- File with direct deposit.
IRS Direct File is the fastest free path if you live in a participating state. It handles CTC, EITC, and most common situations without fees.
CTC vs EITC
| CTC | EITC | |
| Purpose | Offset cost of raising kids | Reward low-wage work |
| Need qualifying child? | Yes (or ODC for others) | No, but larger with kids |
| Maximum | $2,200 per child | $8,231 (3+ kids, 2026) |
| Refundable portion | $1,700 per child | Fully refundable |
| Income floor | $2,500 for ACTC | Starts at first earned dollar |
| Income ceiling | $200K/$400K | $19,540-$70,208 depending on kids/status |
| Claimed on | Schedule 8812 | Schedule EIC |
You can claim both at once. Most hourly workers with kids should. They’re designed to stack. The filing calendar is identical, both claimed on the same return.
Mistakes that get the credit denied
Not filing because you think you don’t owe anything. You still need to file to get the refundable ACTC. Every year millions of low-income parents skip filing and leave the money on the table.
Splitting a child across parents. Divorced or separated parents can’t both claim the same child in the same year. The default rule: the parent the child lived with more nights gets the credit. IRS Form 8332 lets the custodial parent release the claim to the other parent. Without that form, the custodial parent wins every audit.
Claiming a child whose SSN arrives after the filing deadline. If your newborn’s SSN doesn’t come in until May but you already filed, you have two options: amend the return after the SSN arrives, or request an extension and wait. Filing without the SSN loses the CTC for that year.
Assuming the credit stacks with foreign earned income exclusion. It doesn’t in most cases. Ex-pat filers usually can’t claim CTC if they used Form 2555 to exclude foreign wages.
Missing state child tax credits. Fifteen states plus DC have their own CTC on top of the federal one. California, Colorado, and New York all offer meaningful amounts. Check your state’s tax agency website.
The PATH Act delay
Returns claiming EITC or ACTC can’t have their refunds released before mid-February. This applies even if you filed January 20. Direct deposits usually post between February 22 and early March. File early to be at the front of the line when the hold lifts.
Same hold that affects EITC refunds. If your return has both, they arrive in the same deposit.
If the IRS questions your CTC
The IRS sometimes sends a CP87A or CP75 asking for documentation. Common documents they’ll want: birth certificate (to prove relationship), lease or utility bills showing your address with the child’s records (residency), school or medical records for the child listing your address, and the child’s Social Security card.
Respond within the deadline, usually 30 days. Missing it freezes your refund.
For more on handling IRS notices, see our tax and IRS issues guide.
Records to keep for three years
Each year’s tax return copy. W-2s and 1099s. School or daycare records for each child. Proof of address (lease, utility bills). Dependent’s SSN card. Custody documents if applicable.
The IRS can audit a return for up to three years after filing (six in some fraud cases). Keep everything that long at minimum.
If you missed prior years
You can amend any return for up to three years from the original due date. A 2022 return until April 15, 2026. A 2023 return until April 15, 2027. File Form 1040-X. The IRS processes paper amendments in about 16 weeks.
If you missed CTC in 2022 or 2023 with two kids, that’s up to $4,000 in refund you can still claim. Worth the amendment.
Putting it together
The CTC is worth roughly a month’s rent for most working families. Combined with the EITC, a single parent with two kids earning $28,000 often sees a refund of $6,000 or more. The SSN rule and residency test are strict, the PATH Act delays the check a few weeks, and the money is still sitting in your tax return waiting to be claimed.