For most families, the Child Tax Credit is the single biggest piece of help the tax code offers. So when the rules change, it is worth knowing exactly where things stand. Here is what the credit looks like for the 2026 tax year, who it reaches, and which bills could still change it.
What the credit is worth in 2026
Under the tax law passed in July 2025, the Child Tax Credit is set at up to $2,200 per qualifying child for 2026, and that amount is now tied to inflation so it can rise over time. Up to $1,700 of that credit is refundable, which means families can receive it as a refund even if they owe little or no federal income tax. The credit begins to phase out at $200,000 of income for single filers and $400,000 for married couples filing jointly.
Who still misses out
The headline number does not tell the whole story. Because of how the refundable portion is calculated, the lowest-income families often cannot claim the full amount. Analysts at the Institute on Taxation and Economic Policy and the Tax Policy Center estimate that millions of children live in households that receive less than the full credit, simply because their parents earn too little to qualify for all of it. In other words, some of the families who could use the help most are the ones who get the smallest share.
The bills that would change it
Several proposals in the 119th Congress aim to widen the credit's reach. The American Family Act and the Working Parents Tax Relief Act would make more of the credit fully refundable so that low-income children receive the same amount as everyone else, and would add extra support for families with very young children. There is also a separate effort, the Child and Dependent Care Tax Credit Enhancement Act (S.1421), focused on the cost of child care specifically. None of these has become law, and their path depends on which party controls each chamber, but they show where the debate is headed.
What this means for your family
If you have children, claim the Child Tax Credit when you file, even if you do not normally file a return, because the refundable portion can put real money back in your pocket. Free help is available through the IRS Volunteer Income Tax Assistance program and the IRS Free File tools. If your income is low, filing is the only way to receive the refundable part of the credit, so it is worth the time.