Child Tax Credit Guide 2026 — OBBBA Doubles CTC to $2,200
The One Big Beautiful Bill Act (OBBBA) doubles the Child Tax Credit to $2,200 per qualifying child for 2026, with up to $1,700 refundable. This guide explains eligibility, phaseouts, the refundable portion, and how it compares to prior law.
What Changed Under OBBBA
The One Big Beautiful Bill Act of 2025 (P.L. 119-1) made the most significant change to the Child Tax Credit since the TCJA. For the 2026 tax year, the maximum CTC is $2,200 per qualifying child under 17, up from $2,000 under TCJA and $1,000 under pre-TCJA law. The refundable portion — the Additional Child Tax Credit (ACTC) — is $1,700 per child, meaning even families with little or no federal income tax liability can receive a partial refund. The credit is indexed to inflation going forward, so the per-child amount will continue to rise in future tax years. The OBBBA CTC is permanent (unlike the temporary tip and overtime deductions also introduced by OBBBA).
Eligibility: Who Qualifies as a "Child"?
A child qualifies for the CTC if they meet all four of the following tests at the end of the tax year. The relationship test: the child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (including grandchildren, nieces, and nephews). The age test: the child must be under 17 at the end of the tax year (i.e., not yet 17 on December 31, 2026). The residency test: the child must have lived with you for more than half the year. The support test: the child must not have provided more than half of their own support. The child must also be a U.S. citizen, U.S. national, or U.S. resident alien with a valid Social Security number.
Income Phaseouts
The CTC begins phasing out at modified adjusted gross income (MAGI) of $200,000 for single filers and $400,000 for married filing jointly — the same thresholds as under TCJA. The phaseout rate is $50 reduction per $1,000 of MAGI over the threshold (or fraction thereof). For example, a married couple with three children and MAGI of $450,000 would have their $6,600 maximum CTC ($2,200 × 3) reduced by $2,500 ($50 × 50 thousand over), leaving them with $4,100. There is no income floor — even very low-income families qualify for the refundable ACTC portion, subject to the earned income requirement (the refundable portion is limited to 15% of earned income above $2,500).
Worked Example: Family of Four
Consider a married couple with two qualifying children, $95,000 in wages, and $9,500 federal withholding. Their 2026 federal income tax under OBBBA: gross income $95,000, minus the $32,200 MFJ standard deduction, gives taxable income of $62,800. Applying the 2026 OBBBA MFJ brackets (10% on $23,850, 12% on $23,850–$96,950) gives pre-credit tax of $6,780. The Child Tax Credit of $4,400 (2 × $2,200) fully offsets this, but the nonrefundable portion is limited to tax liability. Since pre-credit tax is $6,780 and the credit is $4,400, the full $4,400 applies. Final federal tax: $2,380. With $9,500 withheld, the family receives a refund of $7,120. Under pre-TCJA law with the same numbers, the family would have received only $1,900 CTC (2 × $950 after phaseout) — a $2,500 smaller credit and a meaningfully smaller refund.
How the CTC Interacts With Other OBBBA Provisions
The CTC stacks with all other OBBBA provisions. If you have a qualifying child, you also benefit from the dependent care credit (separate from the CTC) for child care expenses, the new $40,400 SALT cap if you itemize, and (if applicable) the new tip and overtime deductions. The CTC itself is nonrefundable up to your tax liability, but the Additional Child Tax Credit (ACTC) is refundable up to $1,700 per child. To claim the ACTC, you must file Schedule 8812 with your Form 1040. The IRS publishes Form 972 with full CTC guidance, updated annually.
Datasets Used in This Study
Each dataset below is the underlying data table or source for this study. All datasets are licensed under Creative Commons Attribution 4.0 (CC BY 4.0) and are free to reuse with attribution to TheTaxCalc.
2026 Child Tax Credit Maximum and Refundable Amounts
Maximum CTC, refundable ACTC, and phaseout thresholds for 2026 under OBBBA, with prior-law comparison.
Creator: TheTaxCalc, sourced from IRS Publication 972 and OBBBA (P.L. 119-1) · License: CC BY 4.0
2026 Child Tax Credit Phaseout Worksheet
Step-by-step worksheet to calculate CTC reduction based on modified adjusted gross income for single and MFJ filers.
Creator: TheTaxCalc · License: CC BY 4.0
2026 CTC Worked Examples by Filing Status
Six worked examples showing CTC calculation for single, MFJ, and head of household filers across income levels.
Creator: TheTaxCalc · License: CC BY 4.0
Frequently Asked Questions
How much is the Child Tax Credit in 2026?
The 2026 Child Tax Credit under OBBBA is $2,200 per qualifying child under 17. The refundable portion (Additional Child Tax Credit) is up to $1,700 per child, meaning families with little or no federal income tax liability can still receive a partial refund. The credit is indexed to inflation going forward. This is up from $2,000 under TCJA and $1,000 under pre-TCJA law.
What are the income limits for the Child Tax Credit in 2026?
The 2026 CTC begins phasing out at modified adjusted gross income (MAGI) of $200,000 for single filers and $400,000 for married filing jointly. The phaseout rate is $50 reduction per $1,000 of MAGI over the threshold. For example, a single filer with one child and MAGI of $210,000 would have their $2,200 maximum CTC reduced by $500, leaving $1,700. There is no income floor — low-income families qualify for the refundable ACTC portion subject to the earned income requirement.
Who qualifies as a "child" for the Child Tax Credit?
A child must meet four tests: (1) Relationship — your son, daughter, stepchild, foster child, sibling, or descendant of any of them; (2) Age — under 17 at the end of the tax year; (3) Residency — lived with you for more than half the year; (4) Support — did not provide more than half of their own support. The child must also be a U.S. citizen, U.S. national, or U.S. resident alien with a valid Social Security number.
How is the 2026 CTC different from prior law?
Under OBBBA, the 2026 CTC is $2,200 per child (up from $2,000 under TCJA and $1,000 under pre-TCJA law). The refundable ACTC is $1,700 per child (up from $1,600 under TCJA and $1,000 pre-TCJA). The phaseout thresholds ($200K single / $400K MFJ) and the $50-per-$1,000 phaseout rate are unchanged from TCJA. The OBBBA CTC is permanent and indexed to inflation — it will continue to rise in future years.
How do I claim the Additional Child Tax Credit (refundable portion)?
To claim the refundable ACTC, file Schedule 8812 with your Form 1040. The ACTC is up to $1,700 per qualifying child for 2026. The refundable portion is limited to 15% of your earned income above $2,500. Families with three or more qualifying children may also be eligible for an additional calculation that considers Social Security taxes paid. Use IRS Form 972 as your authoritative reference, and consult a tax professional if your situation is complex.
Can I claim the Child Tax Credit if I have no income tax liability?
Yes, you can claim the refundable Additional Child Tax Credit (ACTC) of up to $1,700 per qualifying child even if you owe no federal income tax. The ACTC is refundable, meaning the IRS will send you a refund for the credit amount even if you had no tax withheld. However, the ACTC is limited to 15% of your earned income above $2,500 — so a family with $10,000 in earned income could receive up to $1,125 in refundable ACTC per child.
Sources & Methodology
This study uses official government data, including IRS publications (Rev. Proc. 2025-25, Pub. 15-T, Pub. 972), Social Security Administration data, U.S. Census Bureau American Community Survey, the FCC Broadband Deployment Report, and each state’s Department of Revenue. Tax law changes from the One Big Beautiful Bill Act (P.L. 119-1) are incorporated throughout. For full calculation details, see our methodology page.
Last updated: January 15, 2026. This study is reviewed annually and updated whenever material new data is published by the IRS or other official sources.