Child Tax Credit (CTC) in the USA 2026 — how much, who, how to get it (ITIN, immigration status)

What is the Child Tax Credit and how does it work

The Child Tax Credit (CTC) is a tax relief for having a dependent child. It reduces your income tax by a specified amount for each qualifying child.

Tax year 2025 (filing spring 2026): $2,000/child, with $1,700 refundable (ACTC)

Tax year 2026 (filing spring 2027): $2,200/child (One Big Beautiful Bill Act established a new level), refundable portion under determination

Non-refundable vs refundable:

• The non-refundable portion reduces tax to zero (not below). If the tax is $500, CTC gives $2,000, the credit reduces to 0 — you do not receive an additional $1,500.
• The refundable (ACTC — Additional Child Tax Credit) portion up to $1,700 (2025) — you receive it even if you did not pay tax. This is money transferred to your account upon refund.

This is a key difference for low-income families — the refundable portion provides real money.

Who qualifies as a "qualifying child"

Seven conditions (all must be met)

1. Age: the child must be < 17 years old on December 31 of the tax year (i.e., 16 years old or younger)
2. Relationship: son, daughter, stepchild, foster child, brother, sister, half-brother/sister, child of any of them
3. Support: the child does not provide > 50% of their own support
4. Residence: the child lives with you > 6 months of the year
5. Dependency: you claim the child as a dependent on Form 1040
6. Citizenship: the child is a U.S. citizen, U.S. National, or U.S. Resident Alien (LPR)
7. SSN: the child HAS A VALID SSN issued before the tax return filing date (not ITIN — a child with ITIN does NOT qualify for CTC, but may qualify for another credit — Credit for Other Dependents $500)

Income limit — when does the fade-out start

Example: a couple with 2 children, MAGI $420,000. Base CTC $4,000. Phase-out: $20,000 over the limit / 1000 × 50 = $1,000 reduction. Final CTC = $3,000.

Immigration status — who qualifies

Child

Must be one of:

• U.S. citizen (born in the U.S. or naturalized)
• U.S. National (American Samoa)
• U.S. Resident Alien (Green Card, LPR)

A child with ITIN does NOT qualify for CTC. A valid SSN is required before the tax return filing date (or before the filing extension date). This is a change from 2018 — previously, children with ITIN qualified.

Parents

Parents can have any status:

• U.S. citizen
• LPR
• Resident alien for tax purposes (substantial presence test)
• ITIN holder — a parent with ITIN can claim a child with SSN and receive CTC
• Even undocumented with ITIN can apply if the child has SSN (e.g., a child born in the U.S.)

It is important: a parent without status, but with a child born in the U.S., qualifies for CTC. They pay taxes through ITIN, the child has SSN, CTC applies.

Credit for Other Dependents (ODC) — for children without SSN and adults

If your child has ITIN (not SSN), they do not qualify for CTC, but may qualify for ODC — $500 non-refundable credit:

• A child with ITIN who does not meet U.S. citizenship
• An adult dependent (parent, disabled sibling)
• A child aged 17-18 who is a full-time student (also ODC, not CTC)
• Phase-out the same (200k single / 400k MFJ)

How to get CTC — step by step

1. File your annual return

CTC is not automatic — you must file Form 1040 to receive it. Even if your income is so low that you do not need to file, YOU MUST file to get the refundable CTC.

2. Complete Schedule 8812 — Credits for Qualifying Children and Other Dependents

All calculations for CTC + ACTC + ODC occur on Schedule 8812. Tax software (TurboTax, FreeTaxUSA, H&R Block) fills it out automatically after entering dependents.

3. Enter the child as a dependent

On Form 1040, mark the child as a dependent, provide their name, SSN, relationship. Check the box "qualifies for child tax credit" (or "qualifies for credit for other dependents" if with ITIN).

4. Refund

If your tax is 0, and CTC provides a refundable portion — the IRS will send you a refund. Typically 2-4 weeks from e-filing, 6-10 weeks for paper filing.

Earned Income Tax Credit (EITC) — additional low-income relief

CTC often combines with EITC for full support for low-income families:

• 1 child: EITC up to $4,213 (2025)
• 2 children: EITC up to $6,960
• 3+ children: EITC up to $7,830
• No children: EITC up to $632 (for ages 25-64)

EITC requires earned income (from work) — pensions, benefits do not qualify. EITC is fully refundable.

IMPORTANT: EITC requires a valid SSN for the citizen or LPR PARENT AS WELL. An ITIN holder CANNOT receive EITC, even if the children have SSN. This is a difference from CTC.

State Child Tax Credit

15+ states offer their own state CTC:

• NY — Empire State Child Credit $100-$330/child (refundable)
• NJ — NJ CTC $500/child under 6 years (refundable, income up to $80,000)
• CA — Young Child Tax Credit $1,154/child under 6 years (refundable, part of CalEITC)
• IL — IL CTC from 2024, $300/child under 12, income up to $75/150k
• MA, MD, MN, OK, NM, VT — their own CTC

Common mistakes

• Child with ITIN instead of SSN — does not qualify for CTC, only ODC $500. Apply for SSN for the child if they qualify (LPR by age).
• "Custody" vs "claimed as dependent" — in divorce, only one parent claims the child. By default, the parent with whom the child lives > 50% of the year. You can sign Form 8332 for the other parent to claim.
• Foster child — qualifies if placed by an authorized agency, lived > 6 months.
• Filing as single when small children are LPR — check if MFJ with spouse (even if the spouse does not work) gives a higher CTC with combined income.

What you get "earlier" — Advance CTC

In 2021, the American Rescue Plan expanded CTC to $3,000-$3,600/child and paid monthly. This was temporary (July-December 2021).

Since 2022, CTC returned to its traditional form — the full amount only after filing a return. There is no monthly advance.

Free tax filing — where to file for free

• IRS Free File — for income < $79,000 (2025) — partnerships with TurboTax Free, TaxSlayer, FreeTaxUSA
• VITA (Volunteer Income Tax Assistance) — free IRS assistance for income < $64,000 or disabled
• TCE (Tax Counseling for Elderly) — 60+
• MyFreeTaxes (United Way) — free TaxSlayer full for income < $84,000
• FreeTaxUSA — federal always free, state $15

Practical tips

• Apply for SSN for the child immediately after birth (LPR child) or obtaining status
• File a return even if you earned $0 — you may receive CTC + EITC + stimulus retroactively
• Keep documentation of the child's residence — school records, medical, daycare receipts
• If divorced — Custody Agreement should clearly state who claims the child
• Children with ITIN may wait for SSN after status change — then retroactive refunds are possible (amended 1040X)