The Child Tax Credit (CTC) helps millions of working families reduce their tax bills or increase their refunds. For 2025–2026, the credit continues to play a vital role in lifting children out of poverty while easing the financial burden on low- and middle-income households.
While Congress is still debating long-term changes, the current version of the credit includes increased refundability and slightly adjusted income limits. Families can claim the CTC when filing their tax returns—and if extended legislation passes, some may once again receive advance monthly payments like they did in 2021.
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Child Tax Credit Amounts for 2025–2026
As of the latest structure, families may claim up to:
- $2,000 per qualifying child under age 17.
- A portion of that amount—up to $1,600—is refundable under the Additional Child Tax Credit (ACTC).
Lawmakers are pushing for higher refundable limits (up to $1,800–$2,000), but those increases will depend on legislation updates. If passed before tax season, they would apply for 2025 returns filed in early 2026.
Income Limits for Full Credit
Eligibility phases out as income rises. Here’s the threshold to receive the full credit:
| Filing Status | Full Credit If AGI Is Under |
|---|---|
| Single | $200,000 |
| Married Filing Jointly | $400,000 |
| Head of Household | $200,000 |
Beyond these thresholds, the credit is reduced by $50 for every $1,000 of income above the limit.
Advance Monthly Payments: Will They Return?
Advance monthly payments are not currently in place, but several proposals aim to reinstate them for 2025–2026. If approved, eligible families could begin receiving monthly installments of $150–$175 per child, with the rest claimed during tax season.
In 2021, these advance payments helped reduce child poverty, but Congress has not yet passed permanent legislation to resume them. Families should monitor IRS announcements and watch for any policy updates before the 2026 tax season.
Who Qualifies for the Credit?
To qualify, the child must:
- Be under age 17 at the end of the tax year
- Be your son, daughter, stepchild, foster child, sibling, or a descendant (like a grandchild or niece/nephew)
- Have lived with you for more than half the year
- Be a U.S. citizen, national, or resident alien with a valid Social Security number
Frequently Asked Questions (FAQs)
1. Can I claim the Child Tax Credit if I didn’t work?
No. You must have earned income of at least $2,500 to receive the refundable portion of the credit (Additional Child Tax Credit).
2. Will the Child Tax Credit be paid monthly again in 2026?
Maybe. It depends on Congressional action. Currently, the credit is paid as a lump sum when you file your taxes, but lawmakers are considering bringing back monthly payments.
3. Can I claim the credit for a child born in 2025?
Yes. You can claim the Child Tax Credit on your 2025 tax return (filed in early 2026) for any child born during that calendar year.
4. What if I share custody—can both parents claim the credit?
No. Only one parent can claim the Child Tax Credit for each child per year, usually the parent the child lived with the majority of the year.