Child Tax Credit Calculator
Compute Child Tax Credit, Additional Child Tax Credit (refundable portion), and Other Dependent Credit. Income phase-out included. Free, no signup.
Child Tax Credit Calculator
Compute the US Child Tax Credit (CTC, USD 2,000 per qualifying child under 17) + Additional CTC (refundable portion up to USD 1,700) + Other Dependent Credit (USD 500/non-CTC dependent). Income phase-out at high AGI included.
How to Use the Child Tax Credit Calculator
Count qualifying children
Qualifying child = under 17 at end of tax year, US citizen/national/resident alien with SSN, your dependent (relationship + residency test), didn't provide more than half their own support. Most kids you claim as dependents qualify. Each = USD 2,000 federal CTC.
Count "other dependents" separately
Dependents over 17, dependent parents, disabled adult children, qualifying-relative dependents: USD 500 ODC each (not USD 2,000 CTC). Different test + different amount. Most adult dependents fall here.
Check phase-out at higher income
Phase-out begins at USD 200K single / USD 400K joint AGI. USD 50 reduction per USD 1,000 above threshold. Fully phases out around USD 240K single / USD 440K joint for two-child families. Use your actual AGI from line 11 of Form 1040.
Distinguish refundable vs non-refundable
CTC reduces tax liability dollar-for-dollar — non-refundable. ACTC (Additional CTC, up to USD 1,700 per child in 2026) is refundable — IRS pays it even if your tax liability is zero. Low/middle-income families with kids can receive USD 1,700+ per child even without any federal tax owed.
The Child Tax Credit — A Big Tax Benefit for US Families
The Credit Structure
The US Child Tax Credit provides USD 2,000 per qualifying child under 17 for tax year 2026 (post-TCJA permanent amount unless Congress raises it). Up to USD 1,700 is refundable via the Additional Child Tax Credit (ACTC) — meaning even low-income families with little or no tax liability can receive cash payments through tax filing. For a married couple with 2 kids earning USD 50K-USD 200K, the full USD 4,000 of CTC reduces federal tax liability dollar-for-dollar — material savings that can fully offset income tax for many middle-income families.
Phase-out begins at USD 200K AGI single / USD 400K AGI joint. The phase-out rate is USD 50 of credit lost per USD 1,000 of AGI above the threshold. Fully phased out around USD 240K single / USD 440K joint for a 2-child family. The phase-out is gradual — high earners get partial CTC until quite high income levels. Pre-TCJA the credit phased out at much lower thresholds (USD 75K single / USD 110K joint), so the 2018 expansion meaningfully extended middle-class benefit.
The Refundability Distinction
CTC has two parts. The "non-refundable" portion can only offset existing tax liability — if you owe USD 1,500 of federal tax and have USD 4,000 CTC, only USD 1,500 reduces your tax (the remainder doesn't generate a refund). The "Additional Child Tax Credit" (ACTC) is refundable — IRS sends cash for any portion of the credit that exceeds your tax liability. ACTC is calculated as 15% of earned income above USD 2,500, capped at USD 1,700 per child (2026 estimate, indexed annually). Low-income families with kids may receive USD 1,700+/child via ACTC even with USD 0 tax liability.
The earned-income requirement matters. ACTC requires earned income (wages, salary, self-employment) — not investment income. A retired couple with substantial investment income but no earned income would lose ACTC even if their tax liability is low. Working families with low income but qualifying earned income are the primary ACTC beneficiaries.
"A 2-child US family earning USD 75K likely owes USD 4,000-USD 6,000 in federal income tax pre-CTC. After CTC: USD 0-USD 2,000. For many middle-income families, CTC fully offsets federal income tax — leaving FICA + state tax as the only federal taxes paid."
Other Dependent Credit + EITC Coordination
For dependents who don't qualify for CTC (children 17+, dependent parents, qualifying relatives), the Other Dependent Credit (ODC) provides USD 500 per dependent. Same income phase-out as CTC. Non-refundable. Useful for: college-age kids you still claim as dependents, elderly parents you support, disabled adult children. ODC + CTC together can support families across multiple generations of dependent care.
Earned Income Tax Credit (EITC) is separate but often confused with CTC. EITC is fully refundable, scaled by earned income + family size, phases out completely above modest income levels. Many low-income working families with kids get BOTH EITC + ACTC — combined benefit can be USD 6,000-USD 10,000+ for families with 2-3 kids and earnings around USD 25K-USD 50K. EITC eligibility ends around USD 55-65K depending on family size; CTC continues to USD 240-440K phase-out. Combined, CTC + EITC are the largest source of US federal cash support to working families.
10 Facts About the Child Tax Credit
CTC amount 2026: USD 2,000 per qualifying child under 17.
ACTC (refundable portion): up to USD 1,700/child in 2026 (estimate, indexed).
Other Dependent Credit (ODC): USD 500/non-CTC dependent (over-17 kids, parents).
Phase-out begins at USD 200K single / USD 400K joint AGI.
Phase-out rate: USD 50/USD 1,000 AGI above threshold. Fully out at ~USD 240K/440K for 2-child families.
Qualifying child must have SSN + be US citizen/national/LPR. ITIN dependents don't qualify for CTC but may qualify for ODC.
ACTC requires earned income — 15% of earned income above USD 2,500 used to calculate refundable portion.
Sunset risk: TCJA-expanded CTC sunsets Dec 31, 2025. Could revert to USD 1,000 pre-TCJA amount unless Congress extends.
2021 American Rescue Plan briefly raised CTC to USD 3,000-USD 3,600 with monthly advance payments — only for tax year 2021.
CTC + EITC together are the largest US federal cash support to working families — USD 100B+ annually.
Frequently Asked Questions
- Tests: (1) Age: under 17 at end of tax year. (2) Relationship: your child, stepchild, foster child, sibling, niece, nephew, grandchild. (3) Residency: lived with you 6+ months. (4) Support: didn't provide more than half their own support. (5) Citizenship: US citizen, national, or resident alien WITH SSN. (6) Joint return: NOT filing joint return (except for refund only). All six must be met. Most kids you're already claiming as dependents qualify.
- CTC = the full USD 2,000 per child credit. ACTC = the refundable portion of CTC. If your tax liability is less than your CTC, the unused CTC up to USD 1,700/child is paid as refund via ACTC. ACTC = MIN(unused CTC, USD 1,700/child, 15% of earned income above USD 2,500). For working families with low tax liability, ACTC delivers cash even when CTC alone would be partially "wasted".
- Begins at USD 200K AGI single / USD 400K joint. USD 50 of credit lost per USD 1,000 (or fraction) of AGI above threshold. For 2-child family: fully phases out at ~USD 240K single / USD 440K joint. For higher-child-count families: phase-out range is wider. Use the calculator with your actual AGI to see exact phase-out impact at your income level.
- Children 17+ don't qualify for CTC. They MAY qualify for ODC (Other Dependent Credit) USD 500 if: under 19 OR under 24 if full-time student OR permanently disabled, AND you provided more than half their support, AND they had gross income under USD 5,050 (2024 limit). College-age dependent children typically qualify for ODC. Same phase-out as CTC.
- The TCJA-expanded CTC (USD 2,000/child + USD 200K/400K phase-out) sunsets December 31, 2025. Pre-TCJA amount was USD 1,000/child + USD 75K/110K phase-out. Whether Congress extends or modifies in 2025-2026 legislation is unclear. Most political analysis suggests CTC stays at USD 2,000 or higher — neither party wants to cut credits for families. But the structure could change. Watch the political news in late 2025.
- Earned Income Tax Credit — separate from CTC but often combined for working low/middle-income families with kids. Fully refundable. Phases in then out based on earned income + family size. Maximum: USD 7,830 for 3+ children at right income range (2024). Eligibility ends ~USD 60-65K AGI for joint filers with kids. Combined CTC + EITC + ACTC can deliver USD 6,000-USD 12,000+ to qualifying working families. The single largest US federal cash benefit to working parents.
- For CTC: child must have SSN by the return's due date. ITIN-only children don't qualify for CTC. For ODC: ITIN dependents may qualify for the USD 500 credit. This rule affects immigrant families significantly — undocumented children typically have ITIN, not SSN, so they don't qualify for CTC but do for ODC. The SSN requirement was added by TCJA 2017.
- Only one parent per year — typically the custodial parent (who the child lived with more than half the year). Non-custodial parent can claim CTC only if custodial signs Form 8332 transferring the claim. Some couples alternate years to share the credit. Filing both parents claiming triggers IRS notice + investigation. Decision must be coordinated between divorced parents.
- Self-employment income counts as earned income for ACTC purposes. Schedule C net profit + Schedule SE earnings = your earned income for the 15% × (earned − USD 2,500) ACTC calculation. Sole proprietors + LLC owners can claim CTC + ACTC just like W-2 employees. The credit math is identical regardless of income source.
- Schedule 8812 of Form 1040. Most tax software (TurboTax, H&R Block, FreeTaxUSA, IRS Free File) automates this — input dependents + AGI + earned income, software calculates CTC + ACTC. The IRS Free File Fillable Forms (free) handles this for any income level. Paid software costs USD 0-USD 80 for typical family return with CTC.
Related News
You may be interested in these recent stories from our newsroom.
-
Snowflake jumps 36 per cent in a day on an earnings beat and a US$6 billion AWS chip deal
Snowflake had its best day as a public company on 28 May, closing up 36 per cent after a clean first-quarter beat and a five-year, US$6 bill...
-
MAS Scraps Mandatory Financial Advice for Most Complex Product Buyers in Retail Shake-Up
Singapore retail investors buying structured notes, derivatives and investment-linked policies will no longer need mandatory financial advic...
-
SEC Rewrites Float Rules, PSE Moves to Implement Them — Clearing the Path for GCash's USD 1B Philippine IPO
The SEC lowered the public float floor for large Philippine issuers in February 2026. The PSE followed with a consultation paper in April. T...
75 more free tools
Calculators, converters, security tools — no signup.