Child Tax Credit Calculator 2026

2026 amounts, quoted verbatim: Rev. Proc. 2025-32 §4.05(1): For taxable years beginning in 2026, the maximum amount of the credit allowed under § 24(a) is $2,200. Section 4.05(2): For taxable years beginning in 2026, the amount used in § 24(d)(1)(A) to determine the amount of the credit under § 24 that may be refundable is $1,700. Pub. L. 119-21 §70104 makes the expanded IRC §24 rules permanent and indexes the $2,200 amount for taxable years beginning after December 31, 2025; the published 2026 amount remains $2,200.

MAGI, not plain AGI: Schedule 8812 instructions, Modified AGI, define it as line 3. Lines 1–3 add AGI and excluded Puerto Rico income, Form 2555 amounts (foreign earned income/housing), and Form 4563 amounts; IRC §24(b)(1) specifies §§911, 931 and 933 add-backs. The requested input label is “AGI”; this estimate assumes no add-backs, so AGI equals MAGI. It is not suitable for determining credits where those adjustments apply; Form 2555 filers cannot claim ACTC.

Combined phase-out and displayed allocation: the final 2025 Schedule 8812 and 2026 draft (not a filing form) add $2,200 × children and $500 × other dependents on line 8, then subtract a single reduction on line 12. reduction = min(combined credit, $50 × ceil(max(0, MAGI − threshold) / $1,000)); threshold is $400,000 joint or $200,000 for Single, HoH or MFS. The forms do not explicitly order separate CTC versus ODC reductions. For this calculator's requested breakdown, CTC absorbs the reduction first and ODC absorbs any remainder; this is a presentation allocation, not a separately verified IRS ordering rule. The per-child figure is the remaining CTC divided by the qualifying-child count, an average allocation. The combined post-phase-out amount follows the form.

ACTC scope: min(remaining CTC, $1,700 × qualifying children, rounded(15% × max(0, earned income − $2,500))). This is the requested earned-income method, with remaining CTC after the displayed allocation and assuming none has already been used against federal tax. It is not a full 1040: no tax-liability input, refund estimate, credit-limit worksheet, alternative payroll-tax method for three or more children, or Puerto Rico special rules. The remainder is potential nonrefundable CTC under the maximum-ACTC illustration, not an amount necessarily claimable. Maximum refundable assumes little or no federal income tax liability; the actual split between nonrefundable and refundable portions depends on your Form 1040 / Schedule 8812. ACTC is included in the CTC total; never add it again. ODC is nonrefundable.

Earned income and combat pay: the input assumes qualifying wages/tips included in gross income plus net self-employment income prepared under the Schedule 8812 earned-income instructions; it is not gross business revenue. The engine does not derive self-employment adjustments. IRC §24(d)(1)'s concluding sentence treats §112 nontaxable combat pay as earned income for ACTC. The Schedule 8812 earned-income chart adds it if it was not already included through the EITC worksheet. The optional combat-pay election belongs to EITC; it is not an ACTC exclusion election. No combat-pay election or separate combat-pay field is modeled; the displayed illustration assumes no combat pay.

Rounding: Schedule 8812 line 20 says to multiply by 15%; it gives no special ceiling rule. The 2025 Form 1040 instructions, page 23, Rounding Off to Whole Dollars, allow whole-dollar rounding if used consistently: drop less than 50 cents and round 50–99 cents up. This calculator adopts that optional convention for income inputs and the computed 15% amount; aggregate your income components before entering them. This is separate from the mandatory next-$1,000 rounding on the phase-out line. The 2026 limits come from the final revenue procedure; 2026 draft form structure is corroborative, not final filing guidance.

Who is counted: each qualifying child must be under 17 at the end of 2026 and satisfy dependency, residency, relationship, support, citizenship and return conditions. Turning 17 on December 31, 2026 fails the age test; turning 17 on January 1, 2027 passes the age test. Child and taxpayer need an employment-valid SSN by the return due date including extensions; on a joint return, at least one spouse needs it and the other needs a timely SSN or ITIN. An ITIN does not replace the required child/taxpayer SSN for CTC/ACTC. ODC has separate timely SSN/ITIN/ATIN rules. Counts assume eligibility; this calculator collects no SSNs, dates of birth or identifying information.