2026–2027 Child Tax Credit: OBBBA Raises It to $2,200 Per Child — Full Eligibility Guide

If you have kids under 17, here’s the OBBBA update that matters to you: the Child Tax Credit just went up to $2,200 per child, permanently. That’s $200 more per child than the 2017 TCJA rate, and the credit will now adjust for inflation annually — meaning it should keep up with rising costs going forward.

For a family with three kids, that’s $6,600 total, with up to $5,100 potentially refundable. Here’s the complete picture on eligibility and how to claim it.

Part of our OBBBA Tax Guide series — all OBBBA provisions in one place.

What Changed With the OBBBA

Before the OBBBA, the CTC was $2,000 per child — a rate from the 2017 TCJA that was set to expire. The OBBBA made it permanent and bumped the amount:

The biggest win for most families isn’t the $200 increase — it’s that the credit is now permanent and will grow with inflation. Without the OBBBA, the credit would have dropped back to $1,000 per child.

Who Qualifies

The child must:

• Be under age 17 on December 31 of the tax year (not 17 on or before that date)
• Be your dependent (son, daughter, stepchild, foster child, sibling, or descendant of any of these)
• Have lived with you for more than half the year
• Have a valid Social Security number
• Not have provided more than half their own support

The taxpayer must:

• Have a valid Social Security number (for married joint filers, at least one parent must have an SSN)
• Have earned income greater than $2,500 (to claim the refundable ACTC portion)
• Not be claimed as a dependent on someone else’s return

Income Phase-Out

The CTC starts reducing when your Adjusted Gross Income (AGI) exceeds:

• $200,000 for single filers / head of household
• $400,000 for married filing jointly

The reduction rate: 5% of AGI above the threshold, or $50 per $1,000 over. At $210,000 (single with two kids), the credit reduces by $500 — from $4,400 to $3,900.

The credit can reduce to zero if income is high enough. At $244,000 single with two kids (2 × $2,200 = $4,400 ÷ $50 = 88 × $1,000 = $88,000 above threshold + $200,000 = $288,000 approximate zero-out), most filers with more moderate incomes aren’t affected.

The Refundable Portion: Getting Money Back Even If You Owe Nothing

The Additional Child Tax Credit (ACTC) is the refundable portion — meaning you can get up to $1,700 per child as a refund even if you owe no federal income tax.

To qualify for the refundable portion, you must have earned income above $2,500. The refundable amount is 15% of earned income above $2,500, up to the $1,700 per-child cap.

Example — A Family of Three on Modest Income:

Maria is a single mother of two children (ages 8 and 12). Her earned income: $28,000. AGI: $28,000 (under $200,000 phase-out).

• CTC available: 2 × $2,200 = $4,400
• Federal tax owed before credits: approximately $1,800 (12% bracket after standard deduction)
• Non-refundable portion: reduces tax to $0 ($1,800 used)
• Remaining credit: $4,400 − $1,800 = $2,600
• Refundable ACTC: 15% × ($28,000 − $2,500) = 15% × $25,500 = $3,825, capped at 2 × $1,700 = $3,400
• Maria gets $3,400 back as a refund, even though she owed only $1,800 in tax.

Real Examples

Example 1 — The Chen Family (Standard Case)

Tom and Linda Chen, married filing jointly, earn $95,000 combined. Two kids (ages 7 and 10). AGI well under $400,000 phase-out.

• CTC: 2 × $2,200 = $4,400
• Federal tax owed: approximately $6,800
• After CTC: $2,400 owed
• Compared to pre-OBBBA ($2,000/child): they save an extra $400 vs. the old rate, and $2,800 vs. the pre-TCJA rate of $1,000/child.

Example 2 — High-Income Phase-Out

David and Sarah earn $420,000 combined. Two kids.

Phase-out: ($420,000 − $400,000) × 5% = $1,000 reduction.

Available CTC: $4,400 − $1,000 = $3,400.

Example 3 — The Gonzalez Family (Refundable Portion)

Two parents, two kids, combined income $35,000. Tax owed: roughly $0 after standard deduction and bracket structure.

• CTC available: $4,400
• ACTC: 15% × ($35,000 − $2,500) = $4,875, but capped at $3,400 (2 × $1,700)
• Refund check: $3,400

Custody Situations: The “Other Parent” Rule

If you share custody, only one parent can claim the child in a given year. IRS rules generally give the credit to the custodial parent (the one with whom the child lived more than half the year). Divorced or separated parents can use Form 8332 to transfer the credit to the non-custodial parent for specific years.

The OBBBA didn’t change these custody rules — they work the same as before.

Common Issues to Watch Out For

The SSN requirement is strict — and it’s for both the child and the parent. If your child doesn’t have an SSN by the due date of the tax return (including extensions), you can’t claim the credit. ITINs don’t count for children.

Adoption situations: a child with an Adoption Taxpayer Identification Number (ATIN) can qualify until the adoption is finalized and an SSN is issued.

Filing separately while married — you can claim the CTC on separate returns, but the income threshold drops and you lose access to some related credits. Run the math both ways.

Don’t miss claiming the ACTC if your tax liability is low. Some filers leave refund money on the table by not completing the Schedule 8812 for the refundable portion.

Looking Ahead: 2027 and 2028

The $2,200 CTC will adjust for inflation starting in 2026. Based on current inflation trajectories (CPI running around 3–4%), the 2027 credit may land around $2,250–$2,280 per child, with the exact amount to be announced by the IRS in late 2026.

The phase-out thresholds ($200,000/$400,000) are also expected to adjust for inflation, though at a potentially different rate than the credit amount itself. I’ll update this page as the IRS releases 2027 inflation adjustments.

Things can shift — I’ll post updates when 2027 figures are confirmed. Subscribe here to get notified.

Also see: 2026–2027 IRS Refund Schedule — families claiming the ACTC typically see refunds arrive in late February/early March due to PATH Act processing holds.