Child Tax Credit Guide 2025–2026: Monthly Payments, Refunds, and Eligibility

The Child Tax Credit (CTC) helps tens of millions of operating households reduce their tax bills or increase their refunds. For 2025–2026, the credit keeps to play a critical function in lifting youngsters out of poverty while easing the financial burden on low- and middle-profits households.

While Congress remains debating long-term changes, the modern version of the credit score consists of elevated refundability and slightly adjusted earnings limits. Families can claim the CTC when filing their tax returns—and if extended rules passes, some might also yet again acquire advance month-to-month bills like they did in 2021.

Credit Amount and Refundability

• Maximum Credit per Child: For both 2025 and 2026, the CTC offers as much as $2,200 according to qualifying child below the age of 17 at the give up of the tax year.
• Refundable Portion: The credit includes a refundable component called the Additional Child Tax Credit (ACTC), that is as much as $1,700 per child. This means that even in case you owe no federal profits tax, you can get hold of a refund up to this amount, depending for your profits and tax situation.

Income Limits and Phase-Out

The CTC is subject to income phase-outs:

• Single Filers: The credit starts to segment out at a Modified Adjusted Gross Income (MAGI) of $200,000.
• Married Filing Jointly: The phase-out begins at a MAGI of $400,000.

For every $1,000 of MAGI above these thresholds, the credit amount is decreased with the aid of $50. This approach higher-income taxpayers can also get hold of a discounted credit or none at all.

Eligibility Criteria

To qualify for the CTC, the subsequent conditions need to be met:

• Age: The child need to be under 17 years vintage on the give up of the tax year.
• Relationship: The child have to be your son, daughter, stepchild, eligible foster child, sibling, stepsibling, or a descendant of one of these (e.g., grandchild).
• Support: The child need to not have furnished greater than half of of their personal guide for the duration of the tax year.
• Residency: The toddler have to have lived with you for more than half of the tax year, with exceptions for temporary absences.
• Dependency: You should declare the child as a dependent on your tax return.
• Citizenship: The child ought to be a U.S. citizen, U.S. national, or U.S. resident alien.
• Social Security Number (SSN): Both the child and the taxpayer must have a legitimate SSN issued earlier than the due date of the tax go back.

How to Claim the Credit

To claim the CTC:

1. File a Tax Return: Complete Form 1040 or Form 1040-SR.
2. Include Form 8812: Attach Schedule 8812 (Credits for Qualifying Children and Other Dependents) to your tax return. This form calculates the amount of the CTC you are eligible to receive.
3. Provide Required Information: Ensure you include the SSNs of all qualifying children and any other necessary documentation.
4. Submit Your Return: File your tax return by the due date, typically April 15 of the following year.

Conclusion

The Child Tax Credit for the 2025 and 2026 tax years offers sizeable economic comfort to households with qualifying children. By know-how the credit amount, earnings limits, eligibility requirements, and the method to assert it, you can make certain you got the whole advantage you are entitled to. Always visit a tax expert or searching for advice from reliable IRS assets to stay informed approximately any adjustments or updates to the credit rating.

FAQ’s