The Child Tax Credit is a valuable federal tax benefit for parents or caregivers of eligible children. Claiming the Child Tax Credit and associated deductions can increase your tax refund and reduce your tax liability.

What is the Child Tax Credit (CTC)?

The Child Tax Credit is a non-refundable benefit for parents and caregivers of dependent children under 17, reducing their tax liability. Typically, families must file a tax return to determine the credit amount and eligibility, but in some instances, the benefit is available without filing a return.

U.S. taxpayers can claim up to $2,200 per qualifying child through the Child Tax Credit. The precise amount depends on filing status and modified adjusted gross income.

Additional Child Tax Credit (ACTC):

If the allowed credit exceeds total tax owed, the remainder is issued as the Additional Child Tax Credit.

Credit for Other Dependants (ODC):

This non-refundable credit applies to taxpayers with dependents who do not qualify for the Child Tax Credit or Additional Child Tax Credit.

Child Tax Credit Amount

The child tax credit and its refundable amount are adjusted for inflation annually. For 2026, the credit remains $2,200 per dependent, unchanged from 2025.

If you have little or no tax liability, you can receive up to $1,700 as the Additional Child Tax Credit if your earned income is at least $2,500.

Taxpayers with higher incomes may qualify for a reduced Child Tax Credit.

Income Limits

Taxpayers with eligible dependents can receive the full child tax credit amount if their adjusted gross income meets the criteria:

• For a married couple filing jointly: $400,000 or below.
• For all other filers: $200,000 or below.

The Child Tax Credit decreases by $50 for every $1,000 of income above the specified threshold. Modified adjusted gross income does not appear on tax forms; use reliable tax software to calculate it.

Qualification Requirements:

To qualify for the child tax credits, both the taxpayer (or spouse) and the dependent must have a Social Security number that is:

• issued before the due date of the tax return, and
• valid for getting employment in the U.S.

To avail CTC, your child must meet other requirements, including:

• Age: They must be under 17 at the end of the year.
• Citizenship: They must be a U.S. citizen, U.S. resident alien, or U.S. National.
• Relationship: The child is your son, daughter, brother, sister, foster child, half-sister, step-sister, stepchild, half-brother, step-brother, or descendant of such relations (grandchild, niece, nephew).
• Residency status: They must have lived with you for more than half the year.
• Dependent claim: They must be claimed as a dependent on the tax return. They must not file a joint return unless claiming estimated taxes or a refund of taxes withheld.
• Parent or caregiver's income limit: Their parent or caregiver’s income must not exceed the prescribed limit.
• Financial assistance: Their parent or caregiver must have provided at least half of their financial support during the taxable year. The child must not have supported themselves financially for more than 6 months in the previous year.

Claiming Child Tax Credits

The child tax credit must be claimed on the annual tax return. Schedule 8812 is used to calculate:

• The total credit due.
• The amount of partial refund you can claim, if applicable.

Use appropriate tax software to claim the Child Tax Credit, which streamlines the process with automated forms and interview questions. Taxpayers with an income below a certain level may qualify for free tax preparation software through IRS Free File.