Child Tax Credit (CTC)

A credit beats a deduction because it subtracts from your tax bill itself, not from the income the bill is computed on. For 2026 the Child Tax Credit is worth up to $2,200 for each qualifying child under 17 with a valid Social Security number, an amount the One Big Beautiful Bill Act set and indexed to inflation. Dependents who do not qualify, such as children 17 and older, can still earn the $500 Credit for Other Dependents.

Two mechanics decide what you actually receive. First, the phase-out: the credit shrinks by $50 for every $1,000 of income above $200,000 ($400,000 married filing jointly). Second, refundability: if the credit is bigger than your tax, up to $1,700 per child can still be paid out as the Additional Child Tax Credit, limited to 15 percent of earned income over $2,500. The tax refund calculator applies both rules to your numbers.