Child Tax Credit Calculator 2026 - Free CTC Calculator

Calculate your 2026 Child Tax Credit instantly and maximize this valuable family tax benefit. Our comprehensive calculator helps families claim up to $2,200 per qualifying child, with up to $1,700 refundable even if you owe no taxes.

Understanding the Child Tax Credit (CTC)

The Child Tax Credit is one of the most valuable tax benefits for American families, providing up to $2,200 per qualifying child under age 17 (2026 amount). The credit directly reduces your tax bill dollar-for-dollar, and a portion is refundable—meaning you can receive it even if you don't owe any taxes.

2026 Child Tax Credit Amounts

Major Changes Under OBBBA:

• Increased to $2,200 per child (up from $2,000)
• Refundable portion: $1,700 per child (up from $1,600)
• Now adjusted for inflation going forward
• Made permanent (no longer expires)

Credit Breakdown:

• Qualifying children under 17: $2,200 each
• Other dependents (17+, elderly parents, etc.): $500 each
• Refundable limit: $1,700 per qualifying child

Example Family Impact:

• Family with 2 children, $60,000 income
• Total CTC: $4,400 (2 × $2,200)
• If tax owed is $3,000: Non-refundable portion offsets all $3,000
• Remaining $1,400: Potentially refundable (up to $1,700/child limit)

This credit can mean $4,000-$10,000+ for families with multiple children.

Who Qualifies for Child Tax Credit?

Qualifying Child Requirements

For each child to qualify for the full $2,200 credit, they must meet ALL of these tests:

Age Test:

• Must be under age 17 at the end of the tax year
• Example: Child turns 17 on December 31, 2026 → Does NOT qualify for 2026
• Child turns 17 on January 1, 2027 → DOES qualify for 2026

Relationship Test:

• Your son, daughter, stepchild, or foster child
• Your brother, sister, half-brother, half-sister, stepbrother, or stepsister
• A descendant of any of these (grandchild, niece, nephew)

Support Test:

• Child cannot provide more than half of their own support during the year
• Support includes: housing, food, clothing, education, medical care, recreation

Residency Test:

• Must have lived with you for more than half of 2026
• Temporary absences (school, vacation, medical care) count as time living with you
• Military deployment counts as living with you

Citizenship Test:

• Must be a U.S. citizen, U.S. national, or U.S. resident alien
• Must have a valid Social Security Number issued before the due date of your return

Dependent Test:

• Must be claimed as your dependent on your tax return
• Cannot file a joint return (unless only to claim a refund)

Not Self-Supporting:

• Cannot provide more than half of their own support

Other Dependents Credit ($500)

If someone doesn't qualify as a "child" for the $2,200 credit, they might still qualify for the $500 credit:

Who Qualifies:

• Dependent children age 17 or older
• Adult children in college
• Elderly parents you support
• Other qualifying relatives

Requirements:

• Must be your dependent
• Must be a U.S. citizen, national, or resident alien
• Must have a SSN or ITIN

Example:

• 3 children: Ages 15, 18 (college), and 22 (graduate school)
• Age 15: $2,200 credit
• Ages 18 & 22: $500 each credit
• Total: $3,200

Income Limits and Phase-Outs

2026 Phase-Out Thresholds

The Child Tax Credit begins to phase out at higher income levels:

Phase-Out Begins At:

• Single, Head of Household: $200,000 AGI
• Married Filing Jointly: $400,000 AGI

Phase-Out Rate:

• Credit reduces by $50 for every $1,000 over the threshold
• Applies to total credit (children + other dependents)
• Continues until credit is fully eliminated

Phase-Out Examples

Example 1: Single Parent, 2 Children

• AGI: $215,000
• Above threshold: $15,000
• Phase-out increments: 15 (rounded up)
• Reduction: 15 × $50 = $750
• Base credit: 2 × $2,200 = $4,400
• Actual credit: $3,650 ($4,400 - $750)

Example 2: Married Couple, 3 Children

• AGI: $430,000
• Above threshold: $30,000
• Phase-out increments: 30
• Reduction: 30 × $50 = $1,500
• Base credit: 3 × $2,200 = $6,600
• Actual credit: $5,100 ($6,600 - $1,500)

Example 3: High Earner, Credit Fully Eliminated

• Married couple, 2 children
• AGI: $500,000
• Above threshold: $100,000
• Phase-out increments: 100
• Reduction: 100 × $50 = $5,000
• Base credit: $4,400
• Actual credit: $0 (fully phased out)

Modified Adjusted Gross Income (MAGI)

The CTC uses your Modified Adjusted Gross Income (MAGI) for phase-out calculations:

MAGI = AGI plus:

• Foreign earned income exclusion
• Foreign housing exclusion
• Certain savings bond interest exclusions
• Adoption benefits exclusions

For most taxpayers, MAGI = AGI (the number on line 11 of Form 1040).

Refundable vs. Non-Refundable Credit

Understanding the difference between refundable and non-refundable portions is crucial:

Non-Refundable Portion

What It Does:

• Reduces your tax liability dollar-for-dollar
• Cannot reduce your tax below zero
• Applied first

Example:

• Tax owed before credits: $3,000
• Total CTC: $4,400
• Non-refundable benefit: $3,000 (reduces tax to $0)
• Remaining credit: $1,400 (potentially refundable)

Refundable Portion (Additional Child Tax Credit)

What It Does:

• Can be received as a tax refund
• Even if you owe $0 in taxes
• Limited to $1,700 per child in 2026

Eligibility:

• Must have earned income over $2,500
• Refundable amount = 15% of earned income over $2,500
• Limited to lesser of:
  • $1,700 per qualifying child, OR
  • 15% of earned income over $2,500, OR
  • Remaining credit after non-refundable portion

Calculation Example:

• Family with 2 children
• Earned income: $30,000
• Tax liability: $1,000
• Total CTC: $4,400
• Non-refundable: $1,000 (reduces tax to $0)
• Remaining: $3,400

Refundable calculation:

• Earned income refundable: ($30,000 - $2,500) × 15% = $4,125
• Per child limit: $1,700 × 2 = $3,400
• Refundable amount: $3,400 (the lower amount)

Total benefit: $4,400 ($1,000 non-refundable + $3,400 refundable)

Low-Income Families

For families with little or no tax liability, the refundable portion is critical:

Example: Low-Income Family

• 2 children, earned income: $25,000
• Tax liability: $0
• Total CTC: $4,400
• Non-refundable benefit: $0 (no tax to offset)
• Refundable: ($25,000 - $2,500) × 15% = $3,375
• Refund received: $3,375

This refundable feature makes the CTC particularly valuable for working families with modest incomes.

Strategies to Maximize Child Tax Credit

Strategy 1: Optimize Income to Avoid Phase-Out

If you're near the $200,000/$400,000 thresholds:

Tactics to Reduce AGI:

Retirement Contributions:

• 401(k) contributions: Up to $23,500 (2026)
• IRA contributions: Up to $7,000
• Solo 401(k) (self-employed): Up to $70,000+
• These reduce your AGI directly

HSA Contributions:

• Individual: $4,300 (2026)
• Family: $8,550 (2026)
• Lowers AGI, plus tax-free healthcare savings

FSA Contributions:

• Healthcare FSA: Up to $3,200
• Dependent Care FSA: Up to $5,000

Example Impact:

• Married couple, 2 children
• Current AGI: $410,000 (above $400K threshold)
• Phase-out: 10 increments × $50 = $500 reduction
• Current CTC: $3,900 ($4,400 - $500)

After optimization:

• Max out 2 × 401(k): $47,000
• HSA (family): $8,550
• Total AGI reduction: $55,550
• New AGI: $354,450 (below threshold!)
• New CTC: $4,400 (full credit)
• Savings: $500 CTC + tax deferral benefits

Strategy 2: Coordinate with EITC

For lower-income families, coordinate CTC with Earned Income Tax Credit:

Both Credits Available: Some families qualify for both CTC and EITC

Example:

• Single parent, 2 children
• Earned income: $30,000
• CTC: $4,400
• EITC: ~$6,700
• Total credits: ~$11,100

Optimization:

• Ensure earned income is high enough for maximum EITC
• Both credits fully refundable for qualifying families
• Can result in significant refunds

Strategy 3: Timing of Children's Birthdays

The child must be under 17 on December 31 to qualify:

Planning Consideration:

• Child born December 31, 2026: Qualifies for 2026
• Child born January 1, 2027: Does NOT qualify for 2026

Multi-Year Planning:

• Track when children "age out" at 17
• Last year for full credit is the year they turn 16
• Plan other tax strategies accordingly

Example:

• Child turns 17 on March 1, 2026
• Does NOT qualify for 2026 CTC
• But MAY qualify for $500 other dependent credit if still dependent

Strategy 4: Maximize Earned Income for Refundable Portion

To get the maximum refundable credit:

Earned Income Threshold: Need enough earned income to unlock refundable portion

Calculation: Refundable = 15% × (Earned Income - $2,500)

Strategy:

• Need at least $2,500 earned income to get any refundable credit
• For maximum refund with 2 children ($3,400), need:
  • $3,400 ÷ 0.15 = $22,667
  • Plus $2,500 threshold = $25,167 earned income

Implications:

• Taking on part-time work can increase refund
• Each additional dollar of earned income adds $0.15 to refund (up to limit)
• Balances with childcare costs and other considerations

Strategy 5: Custodial Parent Strategies

For divorced or separated parents:

General Rule: Only the custodial parent (child lived with them more than half the year) can claim CTC

Exception: Custodial parent can release claim to non-custodial parent using Form 8332

Strategic Considerations:

When Non-Custodial Parent Should Claim:

• Non-custodial parent has higher income (bigger tax benefit)
• Custodial parent has little/no tax liability (can't use non-refundable portion)
• Negotiated as part of divorce/separation agreement

When Custodial Parent Should Claim:

• Non-custodial parent's income too high (phaseout)
• Custodial parent can use refundable portion
• Can combine with Head of Household filing status

Example:

• Custodial parent income: $25,000 (28% tax bracket)
• Non-custodial parent income: $450,000 (credit fully phased out)
• Custodial parent should claim: Gets full $2,200 refundable credit
• Non-custodial parent would get $0

Common CTC Mistakes to Avoid

Mistake 1: Not Claiming the Credit

The Problem: Some families don't realize they qualify or forget to claim it.

The Reality:

• Must file tax return to claim (even if not otherwise required)
• Many low-income families miss out
• IRS doesn't automatically give you the credit

Solution:

• Always file a tax return if you have children
• Use free filing services if income qualifies
• Claim both non-refundable and refundable portions

Mistake 2: Missing Social Security Number Requirement

The Problem: Child must have SSN issued before the due date of your return (including extensions).

Common Issues:

• Newborns: Apply for SSN immediately after birth
• Adopted children: May have delays in getting SSN
• ITIN (Individual Taxpayer ID) doesn't qualify

Solution:

• Apply for SSN as soon as child is born or adopted
• If delayed, file for extension to get SSN in time
• Follow up aggressively with Social Security Administration

Impact of ITIN:

• Child with only ITIN: Cannot claim $2,200 CTC
• MAY qualify for $500 other dependent credit
• Loss of up to $1,700 per child

Mistake 3: Incorrect Phase-Out Calculations

The Problem: Not understanding how the phase-out works.

Common Errors:

• Thinking income limit is a cliff (it's not—it's gradual)
• Not realizing retirement contributions can reduce AGI
• Miscalculating the $50 per $1,000 reduction

Solution:

• Use reliable calculator (like ours!)
• Calculate phase-out correctly
• Explore AGI reduction strategies

Mistake 4: Both Parents Claiming Same Child

The Problem: Divorced/separated parents both try to claim the child.

The Reality:

• IRS computers catch duplicate claims
• Both returns flagged for review
• Delays refunds for both parents
• May require proof of custody

Solution:

• Agree in advance who will claim
• Follow Form 8332 rules if non-custodial parent claims
• Keep documentation of custody arrangement
• File early to avoid the other parent claiming first

Mistake 5: Not Understanding Refundable vs. Non-Refundable

The Problem: Expecting full refund when tax liability is low.

The Reality:

• Non-refundable portion only offsets actual tax
• Refundable portion limited by earned income formula
• Many families don't get the full $2,200 per child as a refund

Example of Confusion:

• Family with 1 child, tax owed: $500
• Expects $2,200 refund
• Actually gets: $500 (offset tax) + limited refundable = maybe $1,200 total

Solution:

• Understand the two-part calculation
• Calculate refundable portion based on earned income
• Set realistic expectations for refund amount

CTC and Other Tax Benefits

CTC + Dependent Care Credit

Can claim both for the same child:

Child and Dependent Care Credit:

• For childcare expenses while you work
• Up to $3,000 per child (2 children = $6,000 max)
• 20-35% credit rate depending on income

Claiming Both:

• CTC: $2,200 per child
• Dependent Care: Up to $600-$1,050 per child
• Total benefit: Up to $3,250 per child

No coordination required — completely independent credits.

CTC + Child and Dependent Care FSA

Important Limitation: Cannot claim dependent care credit AND use FSA for same expenses.

FSA Benefits:

• Up to $5,000 pre-tax exclusion
• Effectively saves your marginal tax rate + payroll tax
• At 24% + 7.65% = 31.65% savings rate
• $5,000 × 31.65% = $1,582 savings

Strategy:

• Use FSA for childcare ($5,000 limit)
• Still claim full CTC ($2,200 per child)
• Cannot "double dip" by claiming credit on same $5,000 of expenses

CTC + EITC Interaction

Both credits can be claimed together:

Combined Impact:

• Lower-income families benefit most
• Both fully refundable for qualifying families

Example:

• Single parent, 2 children
• Income: $35,000
• CTC: $4,400
• EITC: ~$6,500
• Total: ~$10,900 in credits

This represents nearly 31% of income in tax credits—a substantial benefit.

CTC + Education Credits

Cannot claim CTC and education credit for same person same year:

American Opportunity Credit:

• Up to $2,500 per student
• First 4 years of college
• Cannot also claim CTC for same student

Strategy for Age 17-18:

• Age 16 (last year under 17): Claim full $2,200 CTC
• Age 17-18: Child is dependent but over 17
  • Option A: Claim $500 other dependent credit
  • Option B: If in college, claim American Opportunity Credit (up to $2,500)
• Choose education credit if in college (higher value)

State Child Tax Credits

Several states offer their own CTC on top of federal:

States with Child Tax Credits

California:

• Young Child Tax Credit: up to $1,083
• Income limits apply
• Stacks with federal CTC

Colorado:

• Child Tax Credit: varies by income
• Refundable credit

Maryland:

• Child Tax Credit: up to $500 per child
• Low-income families

New Jersey:

• Child Tax Credit: up to $500
• Income phase-outs

New York:

• Empire State Child Credit: up to $330
• Low/moderate income

Oregon:

• Kids Credit: varies by income
• Refundable

Vermont:

• Child Tax Credit: percentage of federal

Combined Impact Example:

• Federal CTC: $4,400 (2 children)
• California Young Child Tax Credit: $2,166
• Total: $6,566 in child tax credits

Check your specific state for available credits.

Planning for Future Years

Multi-Year CTC Planning

Track Children's Ages: Create a spreadsheet tracking when each child ages out:

Planning Impact:

• Know when credits decrease
• Plan for reduced refunds
• Adjust budget accordingly

Education Savings Coordination

As children approach college age:

Age 16 Strategy:

• Last year for full $2,200 CTC
• Consider increasing 529 contributions
• Use CTC savings for college fund

Age 17+ Strategy:

• Drops to $500 other dependent credit
• Consider education credit instead if in college
• American Opportunity Credit worth up to $2,500

Inflation Adjustments

Starting in 2026, CTC adjusts for inflation:

What This Means:

• $2,200 amount will increase in future years
• Likely $2,250-$2,300 by 2028
• Phase-out thresholds may also adjust

Planning:

• Credit will keep pace with inflation
• Real value maintained over time
• Benefit compounds for families with multiple young children

Frequently Asked Questions

Can I claim CTC for a child born on December 31?

Yes! If your child is born on December 31, they count as under age 17 for that entire year. However, if they turn 17 on December 31, they do NOT qualify.

What if my child doesn't have a Social Security Number yet?

You cannot claim the full CTC without an SSN. Apply immediately after birth. If delayed, you may qualify for the $500 other dependent credit using an ITIN, but you'll lose $1,700 in credit value.

Can both divorced parents claim the child?

No. Only the custodial parent (who the child lived with more than half the year) can claim, unless they release the claim to the non-custodial parent using Form 8332.

Does CTC affect my other government benefits?

Generally no. The CTC refund typically doesn't count as income for means-tested programs like Medicaid, SNAP, or Section 8 housing. However, check with your specific program.

Can I get CTC if I have no tax liability?

Yes! Up to $1,700 per child is refundable, meaning you can receive it even if you owe $0 in taxes. You must have at least $2,500 in earned income to qualify for any refundable portion.

What if my income varies year to year?

Calculate your expected AGI and plan accordingly. If you'll be close to phase-out thresholds, consider timing retirement contributions or other deductions to optimize your credit.

Conclusion

The Child Tax Credit provides substantial financial support to families, worth up to $2,200 per qualifying child in 2026. With proper planning and understanding of the rules, you can maximize this valuable credit and potentially receive thousands in tax savings or refunds annually.

Key takeaways:

• $2,200 per qualifying child under 17
• Up to $1,700 refundable per child
• Phases out starting at $200K (single) / $400K (married)
• Strategies to optimize: reduce AGI, coordinate with other credits
• Track children's ages for multi-year planning
• Always file a tax return to claim, even if not required

Use our calculator above to estimate your 2026 Child Tax Credit and discover strategies to maximize your family's tax benefits.