For 2026 the Child Tax Credit is $2,200 per child under 17 at year-end. If the credit is larger than your tax, up to $1,700 per child can be paid as a refund (the Additional Child Tax Credit), worth 15% of earnings above $2,500. The credit shrinks by $50 per $1,000 of income above $200,000 ($400,000 married filing jointly). The child needs an SSN, and so does at least one parent.
How the credit turns into a refund
The credit first reduces your income tax. Whatever is left over can come back as cash — but only up to $1,700 per child, and only up to 15% of your earned income above $2,500. That’s why low earners get less than the full $2,200:
| Wages (HoH, 2 kids) | Tax before credit | Used against tax | Refundable ACTC | Total CTC |
|---|---|---|---|---|
| $15,000 | $0 | $0 | $1,875 | $1,875 |
| $25,000 | $85 | $85 | $3,375 | $3,460 |
| $35,000 | $1,085 | $1,085 | $3,315 | $4,400 |
| $50,000 | $2,748 | $2,748 | $1,652 | $4,400 |
| $75,000 | $5,748 | $4,400 | $0 | $4,400 |
At $25,000 of wages, a head of household with two kids owes almost no income tax, so the credit is mostly refundable — capped by the 15% earnings rule. Somewhere in the $40,000s, the family can use the full $4,400. Combined with the EITC, low- and moderate-income families often get refunds several times larger than the tax they paid.
Who counts as a qualifying child
- Under age 17 on December 31, 2026 (born after December 31, 2009).
- Your son, daughter, stepchild, foster child, sibling, or a descendant of one (such as a grandchild or niece), who lived with you more than half the year and didn’t provide more than half of their own support.
- A U.S. citizen, national or resident alien with a Social Security number valid for work, issued before the return’s due date.
- New under the 2025 law: the taxpayer — or at least one spouse on a joint return — must also have an SSN. A child who doesn’t qualify may still get the $500 credit for other dependents (17- and 18-year-olds, college students up to 24, elderly parents).
Why families get refunds: the W-4 Step 3 choice
Payroll doesn’t know about your kids unless you tell it in Step 3 of Form W-4. Leave it blank and the whole credit arrives as a refund; fill it in ($2,200 × children) and it’s spread through the year.
Marcus and Elena, a one-income couple earning $70,000 with two kids, get about $4,400 back with a blank Step 3; with $4,400 entered, about $360 — the rest arrived as roughly $155 more per biweekly paycheck (Step 3 can’t push withholding below zero). Neither choice changes the total. More on the $70,000 page and in how to adjust your W-4.
Refunds that include the ACTC are held until mid-February under the PATH Act — see when you’ll get your refund.
Estimate a family refundEnter your wages, withholding, kids and any tips or overtime — the estimator applies every rule on this page.
Frequently asked questions
How much is the Child Tax Credit for 2026?
$2,200 per qualifying child under 17. Up to $1,700 per child is refundable as the Additional Child Tax Credit.
What is the income limit for the 2026 Child Tax Credit?
The credit is reduced by $50 for each $1,000 of modified AGI above $200,000 ($400,000 for married filing jointly).
Is the 2026 Child Tax Credit fully refundable?
No. The refundable portion is limited to $1,700 per child and to 15% of earned income above $2,500.
Does my child need a Social Security number?
Yes, a work-eligible SSN issued by the return due date. Under the 2025 law, the taxpayer or at least one spouse on a joint return must also have an SSN.
Will claiming the Child Tax Credit delay my refund?
If you claim the refundable Additional Child Tax Credit, the IRS can’t release your refund before mid-February because of the PATH Act.
Related tax refund guides
- EITC 2026 amounts and income limitsUp to $8,231 — full table and examples.
- How to adjust your W-4 for 2026Bigger paycheck or bigger refund — step by step.
- When will I get my tax refund in 2027?21-day e-file rule, PATH Act hold for EITC/ACTC, and a date chart.
- Where’s My Refund? Tracking your 2027 refundWhat the three status bars mean and when to worry.
- Tax filing deadline 2027: April 15Key dates, extensions and what being late really costs.
- Why is my tax refund smaller this year?Eight common reasons, each with a dollar example.
- Average tax refund: 2026 data and what to expect in 2027IRS filing-season statistics, explained.
- Tax refund on a $70,000 salaryWorked example by filing status
Sources & method
- IRS Rev. Proc. 2025-32 (Oct 9, 2025): 2026 tax brackets, standard deduction ($16,100 / $32,200 / $24,150), additional 65+ amounts, EITC table, CTC $2,200 — as summarized by KPMG TaxNewsFlash and Current Federal Tax Developments (Oct 2025).
- Public Law 119-21 (One Big Beautiful Bill Act, signed Jul 4, 2025), IRC §§224, 225, 151(d)(5)(C), 163(h)(4) — phase-out rates.
- IRS / NATP (Feb 2026): PATH Act hold on EITC/ACTC refunds until mid-February; most such e-filed direct-deposit refunds paid around March 2, 2026.
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Annual Percentage Method, STANDARD schedules (updated for P.L. 119-21).
- Our refund model: one W-2 job, wages only, federal income tax only (Social Security and Medicare are never refunded), Form W-4 filled out with just the filing-status box (Pub 15-T standard tables), no pre-tax 401(k). These are estimates, not tax advice — your Form 1040 decides the real number. Parameters checked 2026-11-03.