Written by the TaxPlain Editorial Team · Reviewed for accuracy · Last updated August 2026
⚠️ Educational only. TaxPlain does not provide tax, legal, or financial advice. Always consult a qualified tax professional about your specific situation.
What this is
The Child Tax Credit (CTC) is a federal tax credit worth up to $2,200 per qualifying child for the 2025 tax year. It directly reduces the amount of tax you owe, dollar for dollar, rather than just lowering your taxable income the way a deduction does.
Under the One Big Beautiful Bill Act (OBBBA), the credit amount is now permanently indexed for inflation, so it may increase slightly in future years rather than requiring new legislation to change.
Most parents claim the CTC using Schedule 8812, which is attached to your Form 1040. That same schedule is also where you calculate the refundable portion of the credit — a separate but related benefit worth understanding before you file.
Who it affects
✓ Applies to
Parents and guardians with a qualifying child under age 17 at the end of the tax year who has a valid Social Security number.
↑ Also applies to
Higher earners, but at a reduced amount — the credit phases out above $200,000 MAGI (single) or $400,000 MAGI (married filing jointly).
📅 REFUND TIMING NOTE
If you claim the refundable portion of this credit, federal law prohibits the IRS from issuing your refund before mid-February — even if the rest of your return is simple. This delay applies to your entire refund, not just the credit portion.
Disambiguation
Child Tax Credit vs. Additional Child Tax Credit
These two terms get used interchangeably, but they aren't the same thing — and mixing them up is one of the most common points of confusion on Schedule 8812.
Child Tax Credit (CTC) — the nonrefundable portion. It can reduce your tax bill to zero, but if the credit is worth more than you owe, the excess doesn't come back to you as a refund on its own.
Additional Child Tax Credit (ACTC) — the refundable portion, worth up to $1,700 per child. If the CTC brings your tax bill to zero and credit is left over, the ACTC lets you receive some or all of that remainder as an actual refund.
How the ACTC is calculated — generally 15% of your earned income above $2,500, capped at $1,700 per qualifying child.
Both are figured on the same form — Schedule 8812 walks you through the CTC first, then determines whether you qualify for the ACTC based on what's left over.
Why this distinction matters — a family with little or no tax liability may see most of their benefit come through the ACTC, while a higher-income family may use up the entire credit through the nonrefundable CTC and never touch the ACTC at all.
Credit for Other Dependents (ODC) — a related but smaller $500 nonrefundable credit for dependents who don't meet the CTC's age or relationship tests, such as a 17-year-old or an elderly parent you support.
Amount and income limits
How much is the credit for 2026?
For tax year 2025 (the return most people file in 2026), the Child Tax Credit is worth up to $2,200 per qualifying child, and the Additional Child Tax Credit is capped at $1,700 per child. Because the credit is now indexed for inflation going forward, the 2026 tax year amount may adjust slightly and won't be confirmed by the IRS until later in the year.
Phase-out begins
$200,000 MAGI for single, head of household, and married filing separately filers.
Phase-out begins
$400,000 MAGI for married filing jointly.
Above those thresholds, the credit is reduced by $50 for every $1,000 (or fraction of $1,000) your income exceeds the limit. This is a gradual reduction, not a cliff — most families don't lose the entire credit unless their income is well above the threshold. Your MAGI is the figure that determines where you fall on this scale.
Related forms often involved
The Child Tax Credit doesn't exist in isolation on your return — it interacts with several other forms depending on your filing situation, especially if you also make estimated tax payments throughout the year.
Schedule 8812 — the required form for calculating and claiming both the CTC and ACTC
Form 1040 — where the credit ultimately reduces your total tax owed
Form 2441 — used separately for child and dependent care expenses, which is not the same credit as the CTC
Common mistakes to avoid
⚠️ Missing the age cutoff
A child who turns 17 on or before December 31 no longer qualifies for the CTC — even by one day. They may still qualify for the smaller Credit for Other Dependents instead.
⚠️ Missing SSN requirements
Both the taxpayer and each qualifying child generally need a valid Social Security number issued before the return's due date. An ITIN does not satisfy this requirement for the CTC.
What to do right now
Confirm each child meets the age, relationship, and residency tests before you file, and check your MAGI against the phase-out thresholds. If you expect to claim the refundable ACTC, build the mid-February refund delay into your planning so you're not caught off guard. If you have three or more qualifying children, also check whether the Earned Income Tax Credit applies to your household.
Questions to ask your tax professional
01Does each of my children meet the age, relationship, and SSN requirements for the full credit?
02Based on my income, will I receive the full $2,200 credit or a reduced amount?
03How much of my credit is likely to come through the refundable ACTC versus the nonrefundable CTC?
04Should I adjust my withholding during the year based on this credit?
05Do any of my dependents qualify for the Credit for Other Dependents instead of the CTC?
Frequently asked questions
How much is the Child Tax Credit for 2026?
The Child Tax Credit is worth up to $2,200 per qualifying child. This amount is now permanently indexed for inflation, so it may rise slightly in future years.
What is the difference between the Child Tax Credit and the Additional Child Tax Credit?
The Child Tax Credit (CTC) is nonrefundable, meaning it can only reduce your tax bill to zero. The Additional Child Tax Credit (ACTC) is the refundable portion, worth up to $1,700 per child, that lets you receive money back even if you owe little or no tax.
What is the income limit for the Child Tax Credit?
The credit begins phasing out at $200,000 in modified adjusted gross income for single filers, heads of household, and married filing separately, and at $400,000 for married filing jointly. Above those thresholds, the credit is reduced by $50 for every $1,000 of income over the limit.
How do I claim the Child Tax Credit?
You claim the Child Tax Credit and Additional Child Tax Credit by completing Schedule 8812 and attaching it to your Form 1040. Schedule 8812 walks you through calculating both the nonrefundable and refundable portions.
Why is my refund delayed if I claim the Child Tax Credit?
Under the PATH Act, the IRS cannot issue refunds for returns claiming the Additional Child Tax Credit before mid-February. This delay applies to your entire refund, not just the ACTC portion.