What changed about the Child Tax Credit under the OBBBA?

The OBBBA permanently increased the credit from $2,000 to $2,200 per child, made it inflation-indexed starting 2026, and now requires both the child AND at least one parent to have a valid SSN (previously only the child needed one).

What if my income is above the phase-out?

The credit phases out gradually - $50 for every $1,000 over $200K single / $400K married. So a married couple earning $440,000 would still get $2,200 minus $2,000 = $200 per child. It's not all-or-nothing.

Is the $1,700 refundable portion automatic?

Yes, if you have earned income. The refundable portion (Additional Child Tax Credit) means you can get up to $1,700 per child as a cash refund even if you owe no federal income tax.

Can I claim the Child Tax Credit and the Dependent Care Credit?

Yes - they're separate credits for the same child. The Child Tax Credit is based on having a qualifying child. The Dependent Care Credit is based on paying for childcare so you can work. Many families claim both.

My child turns 17 this year. Do I still get the credit?

Only if your child is under 17 at the end of the tax year (December 31). If they turn 17 during the year, they no longer qualify for the $2,200 CTC but may qualify for the $500 Other Dependent Credit.

Tax Optimization

Child Tax Credit

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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)

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Tax Benefit

Up to $2,200 credit per child, $1,700 refundable (2026)

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

Frequently Asked Questions

Annual Limit

$2,200 per qualifying child (2026, indexed for inflation)

Educational Only: This information is for educational purposes. Consult a qualified financial advisor or tax professional before implementing.

Last reviewed: April 2026

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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.

Child Tax Credit

Interactive Calculator

Tax Benefit

Requirements

How to Implement

Frequently Asked Questions

What changed about the Child Tax Credit under the OBBBA?

What if my income is above the phase-out?

Is the $1,700 refundable portion automatic?

Can I claim the Child Tax Credit and the Dependent Care Credit?

My child turns 17 this year. Do I still get the credit?

Annual Limit

Related tax optimization strategies

Sources