The Internal Revenue Service (IRS) has revised the guidelines for the Child Tax Credit (CTC) for the 2026 tax season following the enactment of President Donald Trump's new tax law.
This initiative aims to ease the tax burden on families with eligible minors. The Child Tax Credit is a non-refundable credit that reduces the tax owed, while the Additional Child Tax Credit (ACTC) is the refundable portion that allows for a refund if the credit amount surpasses the tax liability.
According to the federal agency, the maximum credit amount has been increased to $2,200 per qualifying child, with a refundable limit of $1,700, contingent on each taxpayer's income.
To be eligible, taxpayers and each claimed child must possess a valid Social Security number for employment in the United States, issued before the filing date. The child must be under 17 at the end of the tax year, have resided with the taxpayer for more than half the year, and be a U.S. citizen or legal resident.
The legislation also stipulates that the parent or guardian filing the return must have a valid Social Security number, a requirement introduced by the new law.
The amount of the benefit is income-dependent. The IRS states that the full credit is available to individuals reporting annual incomes up to $200,000, or $400,000 for joint filers. For those earning above these thresholds, the credit decreases by $50 for every additional $1,000.
Additionally, a minimum of $2,500 in earned income is necessary to claim the refundable portion (ACTC).
Taxpayers are reminded by the IRS to claim the credit by completing Form 1040 or 1040(SP) and attaching Schedule 8812 for credits for qualifying children and other dependents. By law, refunds incorporating this credit cannot be issued before mid-February as a precaution against tax fraud.
As reported by Univision, the reforms set to take effect in 2025 will tighten eligibility criteria, excluding certain citizen children whose parents lack legal immigration status, and aim to concentrate benefits on families with stable tax residency and valid Social Security numbers. The initiative also includes automatic inflation adjustments starting in 2026.
The IRS offers an Interactive Tax Assistant to verify eligibility and provides informational resources regarding dependent, educational, and childcare credits. Taxpayers can access the official details at irs.gov, where the agency posts updates and current guidelines on the program.
Understanding the 2026 Child Tax Credit Changes
What is the maximum amount for the Child Tax Credit in 2026?
The maximum amount for the Child Tax Credit in 2026 is $2,200 per eligible child.
Who is eligible for the Child Tax Credit under the new law?
To qualify, both the taxpayer and each child claimed must have a valid Social Security number. The child must also be under 17, have lived with the taxpayer for more than half the year, and be a U.S. citizen or legal resident.
How does income affect the Child Tax Credit eligibility?
Individuals earning up to $200,000, or $400,000 for joint filers, can receive the full credit. The credit decreases by $50 for every $1,000 above these income limits.