The Child Tax Credit (CTC) is a federal tax credit worth up to $2,000 per qualifying child under age 17 as of December 31 of the tax year. Unlike deductions that reduce taxable income, credits directly reduce your tax bill dollar for dollar.
Up to $1,700 of the credit is refundable per child, meaning you can receive a refund even if you owe no federal tax.
To qualify for the Child Tax Credit, the child must: - Be under age 17 at year-end - Be your dependent (son, daughter, stepchild, foster child, sibling, or descendant) - Have lived with you for more than half the year - Be a US citizen, US national, or US resident alien - Have a valid Social Security number
The child cannot provide more than half of their own financial support during the year.
The Child Tax Credit begins to phase out for taxpayers with modified adjusted gross income above: - $200,000 for single filers - $400,000 for married filing jointly
The credit is reduced by $50 for each $1,000 (or fraction thereof) that income exceeds the threshold. For example, a single filer with $210,000 MAGI could lose $500 of the credit.
If the Child Tax Credit exceeds your tax liability, you may qualify for the Additional Child Tax Credit (ACTC), which is refundable. For 2026, up to $1,700 per child is refundable.
To claim ACTC, you must have earned income of at least $2,500 during the tax year. The credit is calculated as 15% of earned income above $2,500, up to the maximum refundable amount.
If you have dependents who do not qualify for the Child Tax Credit (such as children 17–18 or other qualifying relatives), you may claim the Credit for Other Dependents (ODC) worth up to $500 per dependent.
This credit is non-refundable and begins phasing out at the same income thresholds as the CTC.