Tax Optimization
beginner · $0 - $50K
For each qualifying child under 17, you can claim up to $2,200.
Up to $1,700 per child is refundable.
Both the child and at least one parent must have a valid SSN (new requirement under OBBBA).
Phase-out starts at $200,000 single / $400,000 married.
Annual Limit
$2,200 per qualifying child (2026, indexed for inflation)
Key takeaways
- Up to $2,200 per qualifying child under 17 for 2026, with up to $1,700 per child refundable.
- The OBBBA made the credit inflation-indexed and now requires both the child and at least one parent to have a valid SSN.
- The credit phases out by $50 per $1,000 of income above $200K single / $400K married, so it is gradual, not all-or-nothing.
- A child who turns 17 during the year no longer qualifies but may qualify for the $500 Other Dependent Credit.
Requirements
- Child under 17 at end of tax year
- Child has valid Social Security number
- Child lived with you more than half the year
- AGI under $200K single / $400K married for full credit
How to Implement
- 1Ensure child qualifies (age, relationship, residency)
- 2Claim on tax return (Schedule 8812)
- 3Credit reduces tax; refundable portion returned if no tax owed
- 4Automatically calculated when filing
The bottom line
The Child Tax Credit is a per-child credit with a meaningful refundable portion, now indexed to inflation. The SSN requirement and the under-17 age test are the main eligibility details.
Frequently Asked Questions
Related tax optimization strategies
Sources
- Internal Revenue Service, Rev. Proc. 2025-32
2026 inflation-adjusted amounts (tax brackets, standard deduction, estate & gift, FSA, credits)
- Internal Revenue Service, Notice 2025-67
2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)
- Internal Revenue Service, Rev. Proc. 2025-19
2026 HSA and HDHP inflation-adjusted limits
Educational information only. Not financial, tax, or legal advice or a recommendation. Figures are drawn from the primary sources cited above; verify current amounts with the source before acting.