Child Tax Credit Calculator
Compute the United States federal Child Tax Credit, Additional Child Tax Credit (refundable portion), and Other Dependent Credit. Income phase-out included. Free, no signup.
Child Tax Credit Calculator
⚠ Disclaimer: Estimates only. Not investment advice. RECATOOLS is not a registered investment adviser under the U.S. Investment Advisers Act of 1940 or MiFID II. Past performance does not guarantee future results. Trading and investing carry risk of partial or total loss of capital.
Compute the US Child Tax Credit (CTC, USD 2,200 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 2,200 federal CTC.
Count "other dependents" separately
Dependents over 17, dependent parents, disabled adult children, qualifying-relative dependents: USD 500 ODC each (not USD 2,200 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 2,200 per qualifying child under 17 for tax year 2026. The One Big Beautiful Bill Act (OBBBA), signed July 2025, raised the credit to USD 2,200 and made it permanent, indexed to inflation thereafter. 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 4,400 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 4,400 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, 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 2,200 per qualifying child under 17 (OBBBA 2025).
ACTC (refundable portion): up to USD 1,700/child in 2026 (inflation-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.
Now permanent: OBBBA (signed July 2025) made the USD 2,200 CTC permanent and indexed it to inflation. There is no 2025 sunset.
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 2,200 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 5,300 (2026 limit, IRS Rev. Proc. 2025-32). College-age dependent children typically qualify for ODC. Same phase-out as CTC.
- No. There is no 2025 sunset. The One Big Beautiful Bill Act (OBBBA), signed July 2025, raised the Child Tax Credit to USD 2,200 per qualifying child, made it permanent, and indexes it to inflation going forward. The USD 200K single / USD 400K joint phase-out thresholds were also made permanent. Earlier concern about a reversion to the USD 1,000 pre-TCJA amount no longer applies — that scheduled expiration was eliminated by OBBBA.
- 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.
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