How this calculator works
The Child Tax Credit (CTC) reduces your federal income tax dollar for dollar. Part of it can also be paid to you as a refund, even if you owe no tax. The calculator works through the credit in three stages.
- Maximum credit. It multiplies your number of qualifying children by $2,200.
- Income phase-out. If your MAGI is above $200,000 ($400,000 if married filing jointly), the credit drops by $50 for each $1,000 over the line. A partial $1,000 counts as a full one.
- Split into two parts. The credit first offsets the income tax you entered. Any credit left over may be refundable as the Additional Child Tax Credit (ACTC). The ACTC is capped at $1,700 per child and at 15% of earned income above $2,500.
The results show your total credit after the phase-out, the part used against your tax and the refundable part. If any credit is lost because both limits bite, that shows too.
You need your income tax before credits as an input. The federal income tax calculator gives you that figure, and it applies the CTC as well.
2026 Child Tax Credit at a glance
| Rule | 2026 figure |
|---|---|
| Maximum credit per qualifying child | $2,200 |
| Maximum refundable part (ACTC) per child | $1,700 |
| ACTC earned income formula | 15% of earned income above $2,500 |
| Phase-out starts (MAGI) | $200,000; $400,000 married filing jointly |
| Phase-out rate | $50 per $1,000 (or part) over the threshold |
| Credit for other dependents | $500, nonrefundable |
These amounts are set in IRS Revenue Procedure 2025-32, section 4.05. The IRS also has a Child Tax Credit overview page with the eligibility tests.
Worked example
High-income couple in the phase-out
A married couple filing jointly has two qualifying children and MAGI of $410,500.
- Maximum credit: 2 × $2,200 = $4,400
- Amount over the threshold: $410,500 − $400,000 = $10,500
- Rounded up to whole thousands: 11
- Reduction: 11 × $50 = $550
- Credit after phase-out: $4,400 − $550 = $3,850
Their tax is well above $3,850, so the whole credit is used against tax and none is refundable.
Lower-income single parent
A head of household has two children and earns $32,000 in wages. After the $24,150 standard deduction, taxable income is $7,850. Income tax before credits is 10% of that, or $785.
- Maximum credit: $4,400 (no phase-out at this income)
- Nonrefundable part used against tax: $785, bringing income tax to $0
- Credit left over: $4,400 − $785 = $3,615
- Per-child refund cap: 2 × $1,700 = $3,400
- Earned income cap: 15% × ($32,000 − $2,500) = $4,425
- Refundable ACTC: the smallest of $3,615, $3,400 and $4,425 = $3,400
The parent gets $785 of tax wiped out plus a $3,400 refund, for a total benefit of $4,185. The last $215 of credit is unused because of the per-child refund cap.
Who counts as a qualifying child
For the CTC, a child must be under 17 at the end of 2026. The child must also have a valid Social Security number. In general, the child must be your son, daughter, stepchild, foster child, sibling or a descendant of one of them. They must live with you for more than half the year and not provide more than half of their own support.
A child who turns 17 during 2026 does not qualify for the $2,200 credit. They may still qualify for the $500 credit for other dependents, which this calculator does not include. Our Child Tax Credit rules guide covers the tests in more detail.
Married couples who file separately can each claim only the children they claim as dependents. Divorced or separated parents usually follow the custodial parent rules. The parent the child lived with longer generally claims the credit, unless that parent signs a release for the other.
Common mistakes with the credit
- Assuming the full $2,200 is refundable. Only up to $1,700 per child can come back as a refund. The rest only helps if you owe tax.
- Forgetting the earned income test. The refund depends on work income. Someone with little earned income may get a small refund or none.
- Rounding the phase-out down. Every partial $1,000 over the threshold costs a full $50.
- Confusing the CTC with the EITC. The Earned Income Tax Credit is a separate credit with its own rules. For 2026 it reaches up to $7,316 for a family with two children.
- Using AGI from the wrong year. The phase-out uses MAGI for the tax year you are filing, not the prior year.
What this calculator doesn’t include
- The $500 credit for other dependents.
- The Earned Income Tax Credit and the child and dependent care credit.
- The alternative ACTC formula for families with three or more children based on payroll taxes.
- Eligibility checks. You decide how many children qualify.
- State child tax credits.
- Other credits that are applied before the CTC and reduce the tax it can offset.
For your return, follow the Schedule 8812 instructions or ask a tax professional. The standard deduction calculator can help you work out taxable income first.