Child Tax Credit (CTC).

In plain English

The CTC reduces your tax bill for each qualifying child: under 17 at year end, your dependent, living with you over half the year, with a valid Social Security number. The credit phases out at higher incomes, and a portion is refundable (the Additional Child Tax Credit), meaning lower-income families can receive part of it as a refund even with no tax owed. For 2026, the credit is $2,200 per qualifying child, of which up to $1,700 is refundable as the Additional Child Tax Credit. The credit begins to phase out above $200,000 of modified adjusted gross income for single filers and $400,000 for joint filers, dropping $50 for every $1,000 over the threshold; these thresholds are set by statute and not inflation-adjusted.

01Why it matters

For families with kids, the CTC is often the single largest line on the return, and the qualifying rules (age, SSN, residency) are where eligible families accidentally lose it.

02The math, step by step

A married couple with two qualifying kids and income under the phase-out claims the credit for both children, cutting their tax bill dollar for dollar, with up to $1,700 per child refundable, paid out even if it exceeds what they owe.

03What this is NOT

04Receipts

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