The One Big Beautiful Bill Act permanently overhauled the child tax credit. For 2026, the maximum credit is $2,200 per qualifying child, the refundable cap rises to $1,700, and a new rule requires at least one claiming parent to also have a valid Social Security number.
What Is the 2026 Child Tax Credit Amount?
The maximum credit is $2,200 per qualifying child for tax year 2026, confirmed by IRS inflation adjustments. OBBBA amended IRC §24 to make the credit permanent and inflation-index it starting with tax year 2025. Without OBBBA, the TCJA amount of $2,000 per child was scheduled to revert to $1,000 after 2025. OBBBA prevented that rollback and increased the base amount.
How Much Is Refundable?
Up to $1,700 per qualifying child is refundable for 2026 through the Additional Child Tax Credit (ACTC), up from $1,600. The ACTC equals 15% of your earned income above $2,500, capped at $1,700 per child. If the total credit exceeds your federal income tax liability, you receive the excess (up to the $1,700 cap) as a cash refund even if you owe no income tax.
Who Qualifies as a Qualifying Child?
A qualifying child for the CTC must meet all of the following requirements:
- Under age 17 at the end of the tax year
- Claimed as a dependent on your federal return
- Has a valid Social Security number (not an ITIN)
- Lived with you for more than half the year
- Is a U.S. citizen, national, or resident alien
What Is the New Parent SSN Requirement?
Before OBBBA, only the qualifying child needed a valid SSN to claim the credit. OBBBA added a new condition: at least one parent or taxpayer listed on the return must also have a valid SSN (not an ITIN). This primarily affects mixed-status households where a parent files using an ITIN. If neither spouse on a joint return has a valid SSN, the credit is unavailable even if the child has one.
When Does the Credit Phase Out?
The CTC phases out at $50 per $1,000 (or fraction thereof) of modified AGI above these thresholds:
- Single / Head of Household / MFS: $200,000
- Married Filing Jointly: $400,000
Example: A married couple with $420,000 AGI and two qualifying children has income $20,000 above the threshold. That triggers 20 increments of $50 ($1,000 total reduction), cutting the credit from $4,400 to $3,400. The refundable ACTC portion is reduced proportionally as well.
How Do You Claim the Credit?
Report the child tax credit on Form 1040, lines 19 and 28. Use Schedule 8812 (Credits for Qualifying Children and Other Dependents) to calculate both the nonrefundable and refundable portions, including the income-based phaseout. Attach Schedule 8812 whenever you claim either the CTC or the ACTC.
Have questions about how the 2026 child tax credit applies to your situation? Contact TS CPA for a free consultation. We respond within the same day.