Child Tax Credit Calculator
Estimate your child tax credit based on the number of qualifying children, your household income, and filing status. Results are illustrative and not a substitute for IRS guidance.
- With 2 qualifying child(ren) and 0 other dependent(s), your maximum potential credit before phase-out is $4,000.
- Your MAGI of $85,000 is below the $400,000 phase-out threshold, so you keep the full base credit.
- Your tax liability fully absorbs the nonrefundable credit; no refundable ACTC is triggered in this scenario.
- Your earned income of $80,000 supports a refundable component of approximately $0.
- Estimated total federal benefit from CTC + ODC + ACTC: $4,000.
Wondering how much is child tax credit for your family? This calculator estimates your federal Child Tax Credit (CTC) by combining the number of qualifying children under 17, your modified adjusted gross income (MAGI), and your filing status. For example, a married couple filing jointly with two qualifying children and $120,000 MAGI typically receives the full $2,000 per child, totaling $4,000. The credit begins to phase out at $400,000 MAGI for joint filers and $200,000 for all others, reducing by $50 for every $1,000 above the threshold.
The Child Tax Credit is partially refundable through the Additional Child Tax Credit (ACTC), capped at $1,700 per child for 2026. To qualify, each child must have a valid Social Security Number, be under 17 at year-end, be claimed as a dependent, and have lived with you for more than half the year. A family earning $45,000 with three children might see a nonrefundable portion limited by tax liability, but can still recover up to $5,100 through the refundable ACTC, illustrating how lower-income families benefit from the refundability rules.
How it works: Enter your filing status, number of qualifying children under 17, and your modified adjusted gross income. The calculator applies the $2,000-per-child base, subtracts phase-out reductions above the income threshold, then estimates the refundable portion based on earned income.
This calculator provides estimates only and is not tax advice. Federal tax law is complex; consult a CPA or enrolled agent for filing decisions, especially in divorce, custody, or multi-state situations. Claiming the Child Tax Credit for a child without a valid SSN issued before the tax return due date (including extensions) is prohibited — penalties for erroneous claims can result in a 2-year ban from claiming the CTC, and 10 years for fraudulent claims. The refundable ACTC requires at least $2,500 of earned income; households below this threshold receive $0 in refundable credit, regardless of how many qualifying children they have. Tax law beyond 2025 reflects current statute as of early 2026; Congress may modify CTC amounts, refundability, or thresholds. Verify current-year rules at IRS.gov before filing.
Understanding the Child Tax Credit: Amounts, Eligibility, and Refundability
The Child Tax Credit (CTC) remains one of the most valuable federal tax benefits for families. While many search for 'how much is child tax credit 2024' to understand prior-year amounts, the structure of the credit has continued into 2026 with the same $2,000-per-child base and $1,700 refundable cap. This guide explains how the credit is calculated, who qualifies, and how income, filing status, and earned income interact to determine your final benefit.
Child Tax Credit phase-out thresholds by filing status (2026)
| Filing status | Phase-out begins (MAGI) | Reduction rate | MAGI where 2-child credit fully phased out |
|---|---|---|---|
| Married Filing Jointly | $400,000 | $50 per $1,000 over | $480,000 |
| Single | $200,000 | $50 per $1,000 over | $280,000 |
| Head of Household | $200,000 | $50 per $1,000 over | $280,000 |
| Married Filing Separately | $200,000 | $50 per $1,000 over | $280,000 |
| Qualifying Widow(er) | $200,000 | $50 per $1,000 over | $280,000 |
Estimated credit by income and number of children (MFJ, sufficient tax liability)
| MAGI | 1 child | 2 children | 3 children | 4 children |
|---|---|---|---|---|
| $40,000 | $2,000 | $4,000 | $6,000 | $8,000 |
| $80,000 | $2,000 | $4,000 | $6,000 | $8,000 |
| $200,000 | $2,000 | $4,000 | $6,000 | $8,000 |
| $410,000 | $1,500 | $3,500 | $5,500 | $7,500 |
| $450,000 | $0 | $1,500 | $3,500 | $5,500 |
Refundable ACTC by earned income (1 qualifying child)
| Earned income | Earnings above $2,500 | 15% formula | Max refundable ACTC |
|---|---|---|---|
| $5,000 | $2,500 | $375 | $375 |
| $10,000 | $7,500 | $1,125 | $1,125 |
| $15,000 | $12,500 | $1,875 | $1,700 (capped) |
| $25,000 | $22,500 | $3,375 | $1,700 (capped) |
| $50,000 | $47,500 | $7,125 | $1,700 (capped) |
Who Qualifies as a 'Qualifying Child' for the CTC?
To claim the Child Tax Credit, each child must meet seven IRS tests: age (under 17 at year-end), relationship (son, daughter, stepchild, foster child, sibling, or descendant), dependency (claimed on your return), residency (lived with you over half the year), support (didn't provide more than half their own), citizenship (U.S. citizen, national, or resident alien), and SSN (valid Social Security Number issued before the return due date). A child turning 17 on December 31 is ineligible — even by one day. ITIN-holding children can no longer qualify for the CTC but may qualify for the $500 Credit for Other Dependents.
How Much Is the Child Tax Credit Worth?
The base credit is $2,000 per qualifying child under 17, with up to $1,700 of that refundable as the Additional Child Tax Credit (ACTC) in 2026. Non-child dependents (older children, elderly parents, qualifying relatives) generate a separate $500 nonrefundable Credit for Other Dependents (ODC). A family with three qualifying children could see up to $6,000 in total CTC, plus $500 for each additional dependent. The credit reduces your tax bill dollar-for-dollar; if it exceeds your liability, the refundable portion can produce a check from the IRS.
How Does the Income Phase-Out Work?
Above $400,000 MAGI (joint) or $200,000 (all other statuses), the credit phases out by $50 for every $1,000 — or fraction thereof — of income over the threshold. Importantly, the IRS rounds excess income UP to the nearest $1,000 before applying the 5% reduction, so even $1 over the threshold triggers a $50 cut. A married couple with two children and $410,000 MAGI loses $500 of credit ($10,000 excess × 5%), leaving $3,500. The credit is fully phased out for a 2-child MFJ household at $480,000 MAGI.
Why Earned Income Matters for the Refundable Portion
The refundable ACTC equals 15% of earned income above $2,500, capped at $1,700 per child for 2026. This means families with very low earned income receive less of the refundable portion — a common pain point for parents on unemployment, disability, or those with primarily investment income. A single parent earning $15,000 with one child gets the full $1,700 refundable amount; one earning only $5,000 gets just $375. Self-employment income counts as earned, but Social Security, pensions, and capital gains do not.
Common Calculator Confusion Points: What Inputs Really Mean
Many users mistakenly enter gross income instead of MAGI — for most families they're identical, but if you have foreign earned income exclusions, Puerto Rico income, or excluded U.S. savings bond interest, you must add those back. 'Tax liability' means your federal income tax BEFORE any credits are applied (line 22 on Form 1040), not what you owe after withholding. Entering $0 liability with high earned income is valid: the nonrefundable portion becomes zero, but the full refundable ACTC still flows through. Counting a 17-year-old as a qualifying child is the single most common error.
Common Mistakes That Reduce or Eliminate Your Credit
First, claiming a child without a valid SSN issued before the tax return due date — including extensions — disqualifies them entirely from the CTC (though they may qualify for the $500 ODC). Second, divorced or separated parents often both attempt to claim the same child; only the custodial parent qualifies unless Form 8332 releases the claim. Third, families forget that MFS filers face the same low $200,000 threshold as singles, often making joint filing more advantageous. Fourth, failing to file because income is below the filing threshold means leaving refundable ACTC on the table — file anyway to claim it.
How This Calculator Works: Methodology & Parameter Explanations
Core formula:
CTC = (kids × $2,000) + (other_dependents × $500) − max(0, ⌈(MAGI − threshold)/1000⌉ × 1000 × 5%); ACTC = min(remaining_CTC, $1,700 × kids, 15% × max(0, earned_income − $2,500))where:
kids— Qualifying children under 17 (children)other_dependents— Non-child qualifying dependents (dependents)MAGI— Modified Adjusted Gross Income ($)threshold— Filing-status phase-out threshold ($400K MFJ, $200K others) ($)earned_income— Wages + self-employment income ($)tax_liability— Federal income tax before credits ($)
How to apply: Apply the nonrefundable portion first to reduce tax liability dollar-for-dollar. Any unused CTC (not ODC) then flows into the ACTC formula, which is limited by both the $1,700-per-child refundable cap and the 15% earned-income test. Sum the nonrefundable amount used and the refundable ACTC to get your total federal benefit.
Worked example: Consider a married couple filing jointly with 2 qualifying children, $95,000 MAGI, $90,000 earned income, and $6,500 tax liability before credits. Base credit = 2 × $2,000 = $4,000. MAGI is below $400,000, so no phase-out. Nonrefundable portion absorbs $4,000 of the $6,500 tax bill, reducing liability to $2,500. Because tax liability fully absorbed the credit, no ACTC is needed. Total benefit: $4,000. If instead their liability were only $1,000, the nonrefundable portion would be $1,000, and the remaining $3,000 would flow to ACTC — limited by 15% × ($90,000 − $2,500) = $13,125, well above the $3,000, so the full $3,000 is refundable. Total benefit: $4,000 (now split $1,000 nonrefundable + $3,000 refundable).
Alternative formulas
Pre-2018 Child Tax Credit (Pre-TCJA): CTC = kids × $1,000; phase-out at $110K MFJ / $75K single
When to use: Historical context only — relevant if amending returns for tax years 2017 or earlier.
2021 Expanded CTC (American Rescue Plan): Up to $3,600/child under 6, $3,000/child 6–17; fully refundable
When to use: Applies only to tax year 2021. The expansion was not extended; for 2022 onward the credit reverted to the $2,000 structure used here.
Parameter explanations
| Input | Unit | What it means | Impact on results |
|---|---|---|---|
| Filing status | — | Your IRS filing category (Single, MFJ, MFS, HoH, QW), which determines your phase-out threshold. | MFJ enjoys the $400K threshold — double that of other statuses. Switching from MFJ to MFS halves your threshold and can eliminate the credit for higher earners. |
| Number of qualifying children (under 17) | children | Count of dependents who meet all seven IRS qualifying-child tests, including the under-17 age rule and valid SSN. | Each child adds $2,000 to the base credit and $1,700 to the refundable cap. The largest single lever in the calculation. |
| Other dependents | dependents | Dependents who don't qualify as 'children under 17' but pass the dependency tests — typically older children, parents, or qualifying relatives. | Each adds $500 to the nonrefundable ODC. Does not contribute to the refundable ACTC. |
| Modified Adjusted Gross Income (MAGI) | $ | AGI plus add-backs for foreign earned income exclusion, Puerto Rico income, and certain bond interest. For most households, equal to AGI. | Each $1,000 above the threshold cuts the credit by $50. A $20,000 excess removes $1,000 of credit, fully eliminating one child's worth. |
| Earned income | $ | Wages, salaries, tips, and net self-employment earnings — investment and retirement income excluded. | Determines the refundable ACTC ceiling via the 15% × (earned − $2,500) formula. Below $13,833 earned, the refundable amount per child is less than the $1,700 cap. |
| Estimated tax liability | $ | Your federal income tax before any credits, typically Form 1040 line 22. | Caps the nonrefundable portion. If your liability is below your CTC, the difference (up to $1,700/child) may flow to the refundable ACTC. |
Assumptions
The headline 'how much is child tax credit' figure is illustrative — actual amounts depend on the specific inputs you provide, not a fixed default.
Children meet all IRS qualifying-child tests — We assume each counted child has a valid SSN, U.S. citizenship/residency, lived with you over half the year, and didn't provide more than half their own support. Failing any test disqualifies that child entirely from CTC.
MAGI approximates AGI for typical households — For families without foreign income exclusions or Puerto Rico-sourced income, MAGI = AGI. If you have these add-backs, enter your true MAGI rather than AGI.
Tax liability is pre-credits, post-deductions — We model the credit as reducing liability after standard/itemized deductions but before any credits. Other credits (EITC, education) interact and may shift the optimal application order in practice.
Phase-out applies the IRS rule of rounding excess MAGI up to the next $1,000 before the 5% reduction.
Refundable ACTC is capped at $1,700 per child for tax year 2026, consistent with current statute.
How to use this calculator
- Confirm your filing status — Select MFJ if married filing jointly — this doubles your phase-out threshold to $400,000. Otherwise choose the status matching your Form 1040.
- Count only qualifying children under 17 — Exclude any child who turns 17 by December 31 of the tax year. Include them instead in 'other dependents' for the $500 ODC if they still qualify as dependents.
- Enter MAGI, not gross wages — Use your Form 1040 AGI (line 11) unless you have foreign earned income or Puerto Rico add-backs. Don't confuse MAGI with W-2 box 1 wages.
- Provide earned income separately — Earned income drives the refundable ACTC. Pension, Social Security, and investment income do not count — only wages and net self-employment.
- Compare nonrefundable vs refundable outputs — If your refundable portion is large, ensure you actually file a return — even if your income is below the filing threshold — to claim it.