Are you familiar with Child Tax Credit? In case you have a child and you don’t know anything about this, we are going to explain it today. This is an economic aid the U.S. government offers to families to cover the cost of raising children. As you can imagine, this benefit has been very important for years, since it has helped millions of families paying for basic needs such as: food, housing, education, and health.
However, this credit will experience some important changes in 2026: the amount will be higher, but there will be new requirements. So, let’s find out more about Child Tax Credit.
Child Tax Credit
This is a tax benefit from the federal government, which means that it reduces the amount of taxes families must pay and, in some cases, families can receive money back, even if they owe little or no tax.
This credit was created to help families with the high cost of raising children. According to data from the government itself, this support has benefited up to 40 million families every year.
An important feature about this credit is that it’s partially refundable, so some families can receive extra money as reimbursement.
Changes in 2026
From tax year 2026, Child Tax Credit will increase to $2,200 per eligible child. What’s more, the amount will be adjusted with the passage of time depending on inflation (depending on how much the cost of living increases).
However, this increment comes with new requirements that make it more difficult for some families to have access to the benefit. These changes are part of a tax law included in a bill promoted by Donald Trump.
It’s important to know that the final amount each family receives depends on their Modified Adjusted Gross Income (MAGI), which is the income reported to the IRS.
Requirements for eligible children
To be able to claim the Child Tax Credit, the child must meet with ALL the following requirements:
- Be under 17 years old at the end of the tax year.
- Have a valid Social Security number authorized for work in the U.S.
- Have lived with the taxpayer for more than half of the year.
- Be claimed as a dependent on the tax return.
- Not have provided more than half of their own financial support.
If your child doesn’t meet with one of these points, you can’t claim the credit for that child.
New Social Security change
One of the most important and sensitive changes is related to the parents’ Social Security number. Now, for single filers, the parent claiming the credit must have a valid Social Security number. For married couples filing jointly, at least one parent must have a valid Social Security number.
Basically, this means that some children could be excluded from this benefit, even if they do have Social Security, if their parents don’t follow the requirements. This change mainly affects immigrant families.
Income limits for Full Child Tax Credit
The full credit of $2,200 will only be given if the income does not exceed certain limits:
- $200,000 for single filers.
- $400,000 for married couples filing jointly.
If the income is over these limits, the credit is reduced. So, for every additional $1,000, the credit is reduced $50.
Refund limits and low-income restrictions
Even though the full credit is $2,200 per child, not all of it can be refunded. For example:
- The maximum refundable amount is $1,700 per child.
- The taxpayer must earn at least $2,500 in work income.
- Only 15% of earned income is used to calculate the refundable portion.
This means families with very low income may receive less support or no refund at all. If a taxpayer owes less than $2,200 in taxes, the unused portion will not be paid as a refund.
Payments delays on Child Tax Credit
According to the PATH Act, the IRS can delay refunds related to this credit until the middle of February, even if the tax return is filed earlier. This rule also applies to the Earned Income Tax Credit (EITC).
How can you claim the Child Tax Credit?
To apply for this credit, families must include their children as dependents when filing their federal income tax return. The required forms are:
- Form 1040, the standard tax return form.
- Form 8812, used to calculate the Child Tax Credit and other dependent credits.
The IRS also provides an online Interactive Tax Assistant that helps estimate how much Child Tax Credit a family may receive before filing.
So, we hope this article has been helpful to know how the Child Tax Credit works, who qualifies, and how these updates may affect families across the United States.