Child Tax Credit Calculator 2026

The OBBBA increases the Child Tax Credit from $2,000 to $2,200 per qualifying child. As a tax credit (not a deduction), it directly reduces your tax bill dollar-for-dollar, making it one of the most impactful provisions for American families.

Who Qualifies?

To claim the Child Tax Credit, each child must meet all of the following requirements:

• Age: Under age 17 at the end of the tax year (December 31)
• Citizenship: Must be a U.S. citizen, U.S. national, or U.S. resident alien
• Social Security number: Must have a valid SSN issued before the due date of the return
• Residency: Must have lived with you for more than half the tax year
• Dependent status: Must be claimed as your dependent on your tax return
• Support: The child must not have provided more than half of their own support during the year
• Joint return: The child must not file a joint return (except solely to claim a refund)

Income Phaseout

The credit phases out at $200,000 for single filers and $400,000 for married filing jointly. The credit reduces by $50 for every $1,000 of income above the threshold. This is relatively generous — a married couple would need to earn over $488,000 before the credit for two children is fully phased out.

Worked Example: The Johnson Family

Mike and Lisa Johnson live in suburban Atlanta with their three children: Emma (age 14), Lucas (age 10), and baby Olivia (age 2). Their combined household income is $95,000, and they file married filing jointly.

• Qualifying children: 3 (all under age 17)
• Income ($95,000) is well below the $400,000 MFJ phaseout — full credit
• Credit per child: $2,200
• Total credit: $2,200 x 3 = $6,600
• Refundable portion: $1,700 x 3 = $5,100 (if they owe less than $6,600 in tax)
• Monthly benefit equivalent: $550 per month

Compared to the old $2,000 CTC, the Johnsons receive an additional $200 per child, or $600 more per year total. While the per-child increase is modest, it adds up for larger families.

Refundable Portion (Additional Child Tax Credit)

Up to $1,700 per child is refundable, meaning you can receive it even if you owe $0 in federal income taxes. This is called the Additional Child Tax Credit (ACTC). For example, if your total tax liability is $3,000 but your CTC is $6,600 (3 children), you would first reduce your tax to $0, then receive up to $5,100 ($1,700 x 3) as a refund.

The refundable portion is particularly valuable for lower-income families who may not owe enough in federal taxes to use the full credit amount.

Credit vs. Deduction: Why This Matters

The Child Tax Credit is a tax credit, not a tax deduction. This is an important distinction:

• A $2,200 credit reduces your tax bill by exactly $2,200 — regardless of your tax bracket
• A $2,200 deduction at a 22% tax rate would only save you $484 — the savings depend on your bracket

Credits are always more valuable than deductions of the same amount. The CTC being a credit makes it one of the most powerful tax benefits available to families.

Source: IRS.gov | Congress.gov — One Big Beautiful Bill Act