The Child Tax Credit remains the most valuable benefit for families with children. For the 2026 filing season, the credit is set at up to $2,200 per qualifying child under the age of 17. This amount directly reduces a family’s federal tax bill, dollar for dollar.
Crucially, up to $1,700 of that credit is refundable through the Additional Child Tax Credit. Refundable means families can receive the money even if their total tax liability is lower than the credit itself. For lower- and middle-income households, this feature often determines whether they receive a refund or simply reduce taxes owed.
To qualify, a child must meet strict IRS rules. The child must be under 17 at the end of the tax year. The child must have lived with the taxpayer for more than half the year. The child must be claimed as a dependent and must have a valid Social Security number issued before the tax return due date. These requirements have not changed, but errors in any of them can delay refunds.
Most families claim the credit using Form 1040, along with Schedule 8812, which calculates the refundable portion. Filing electronically and choosing direct deposit remains the fastest way to receive any refund.
Beyond family c
Read More