The Child Tax Credit is one of the most valuable breaks for families, and the One Big Beautiful Bill Act (OBBBA) changed it in ways that matter for your 2026 return. The credit is larger, it now adjusts for inflation, and there are new Social Security number rules for parents.
Here's how the credit works for tax year 2026, the return you'll file in early 2027.
How much is the credit in 2026?
For 2026, the maximum Child Tax Credit is $2,200 per qualifying child. OBBBA made the higher credit permanent, and the amount is now adjusted for inflation each year.
A credit reduces your tax dollar for dollar. If you owe $5,000 in federal income tax and have two qualifying children, the credit can bring your bill down to $600.
The refundable part
If the credit is larger than the tax you owe, part of the difference can come back to you as a refund. This is called the Additional Child Tax Credit. For 2026, up to $1,700 per child is refundable.
The refundable amount is generally 15% of your earned income above $2,500, up to that per-child cap. Say you're a single parent with one child and $12,500 of wages. Your earned income above $2,500 is $10,000, and 15% of that is $1,500. If you owe no income tax, that $1,500 could be refunded to you. Families with three or more qualifying children may be able to use an alternative calculation on Schedule 8812.
Who counts as a qualifying child?
To claim the credit for a child, the child generally must:
- Be under 17 at the end of the tax year
- Be your son, daughter, stepchild, eligible foster child, brother, sister, half-sibling, stepsibling, or a descendant of one of them (for example, a grandchild, niece or nephew)
- Have lived with you for more than half the year
- Not have provided more than half of their own support
- Be claimed as your dependent
- Be a U.S. citizen, U.S. national or U.S. resident alien
- Have a Social Security number that is valid for employment and issued before the due date of your return, including extensions
The age rule catches many parents off guard. A child who turns 17 at any point during 2026 doesn't qualify for the Child Tax Credit on your 2026 return, though they may qualify for the smaller credit described below.
New Social Security number rules for parents
Starting with 2025 returns, the person claiming the credit must also have a valid Social Security number, meaning one that is valid for employment and issued before the return's due date, including extensions. On a joint return, only one spouse needs a valid SSN.
An Individual Taxpayer Identification Number (ITIN) does not satisfy this rule for the Child Tax Credit. If your family's situation involves ITINs, have the details checked before you file.
Income limits and the phase-out
The full credit is available if your modified adjusted gross income (MAGI) is $200,000 or less, or $400,000 or less if you file jointly. Above those levels, the credit is reduced by $50 for every $1,000 (or part of $1,000) of income over the threshold.
Say you're married filing jointly with two qualifying children and a MAGI of $410,000. You're $10,000 over the threshold, so your credit drops by $500, from $4,400 to $3,900. At higher incomes, the credit can phase out entirely.
The $500 credit for other dependents
Dependents who don't meet the Child Tax Credit rules may still qualify for the credit for other dependents, worth up to $500 each. It can apply, for example, to a child who has turned 17 or to another relative you support who qualifies as your dependent.
The dependent must be a U.S. citizen, U.S. national or U.S. resident alien. They can have an SSN, an ITIN or an adoption taxpayer identification number (ATIN), issued before the return's due date. This credit is not refundable, and it uses the same income phase-out as the Child Tax Credit.
Trump Accounts: a separate program for young children
OBBBA also created Trump Accounts, a new type of savings account for children. This isn't a tax credit and doesn't change the Child Tax Credit, but parents of young children should know about it.
The federal government will make a one-time $1,000 pilot program contribution to the account of an eligible child. To be eligible, the child must be a U.S. citizen with a valid Social Security number, born between January 1, 2025, and December 31, 2028, and someone must make the election for them. You can elect by filing Form 4547, including through your IRS online account. The IRS site at IRS.gov/trumpaccounts has the current details.
How to claim the credit
You claim the Child Tax Credit, the refundable portion and the credit for other dependents on Schedule 8812, filed with Form 1040. Before you file:
- Check that each child's name and SSN match their Social Security card exactly.
- Confirm who will claim each child if you're separated, divorced or sharing custody. Only one person can claim a child in a given year.
- Keep records showing where the child lived during the year, such as school or medical records.
When it's worth getting help
The basic case is simple: a married couple, two young kids, all with SSNs, and income well under $400,000. It gets harder with shared custody, a child who turned 17, relatives living with you, ITINs in the household or income near the phase-out range. Mistakes here can delay a refund or lead to an IRS letter.
If any of that sounds like your family, our personal tax preparation team can review your situation. For a broader look at what changed this year, see our guide to the 2026 tax changes, or book an appointment.
This article is general information, not advice for your specific situation.
Sources
- IRS: Child Tax Credit
- IRS Revenue Procedure 2025-32 (2026 amounts)
- IRS: Instructions for Schedule 8812
- IRS: Schedule 8812 (Form 1040)
- IRS: Tax credits for individuals
- IRS: Trump Accounts
General information, not tax advice. Tax rules change and depend on your situation. Figures are for tax year 2026 unless noted; confirm current amounts at IRS.gov or talk to a Stellar Tax professional before acting.