The Child Tax Credit was set to shrink back to its pre-2018 level after 2025 — instead, the One Big Beautiful Bill Act increased it further, to $2,200 per qualifying child for 2026, and made the higher credit permanent going forward.
The new 2026 amount
For tax year 2026, the Child Tax Credit is $2,200 per qualifying child, up from $2,000 in prior years, and it will now adjust for inflation annually going forward rather than staying flat or facing another scheduled reduction as originally written into the 2017 tax law.
Who counts as a qualifying child
A qualifying child generally must be under 17 at the end of the tax year, related to you (including stepchildren, foster children, and siblings), live with you for more than half the year, not provide more than half of their own financial support, and be claimed as your dependent. Each qualifying child also needs a valid Social Security number issued before the filing deadline.
The income phase-out hasn't changed as dramatically
The credit still phases out for higher-income households, beginning at modified adjusted gross income above $200,000 for single filers and $400,000 for married couples filing jointly, reduced by $50 for every $1,000 of income above those thresholds. A freelancer with a strong year should factor this phase-out into year-end tax planning if income is likely to land near those lines.
The refundable portion for lower-income families
A portion of the credit remains refundable through the Additional Child Tax Credit for families whose tax liability is too low to use the full nonrefundable credit, meaning it can generate a refund even when a family owes little or no income tax. The refundable amount and the earned-income calculation behind it are adjusted periodically, so check the current-year figure rather than assuming it matches a prior year.
Frequently asked questions
Does the $2,200 amount apply to my 2025 return I'm filing now?
No — the 2025 tax year retains its own separate amount; $2,200 applies specifically to the 2026 tax year, filed on the return you'll submit in early 2027.
Can I claim the Child Tax Credit for a child born in December?
Yes — a child born at any point during the tax year, including December 31, generally counts as having lived with you for the full year for this purpose, as long as the other qualifying tests are met.
What if my dependent doesn't qualify for the Child Tax Credit?
A dependent who doesn't meet the Child Tax Credit's age or relationship tests may still qualify for the separate $500 Credit for Other Dependents.