Margin notes
- For 2026 the Child Tax Credit is up to $2,200 per qualifying child, with up to $1,700 refundable, under Rev. Proc. 2025-32.
- The maximum 2026 Earned Income Tax Credit is $8,231 for families with three or more qualifying children.
- Beginning with 2026, the maximum Child and Dependent Care Credit rate rises from 35% to 50% of qualifying expenses, the IRS says.
Credits are where the tax code is most generous to ordinary families. Unlike deductions, which are worth more to people in higher brackets, a credit cuts the tax bill dollar for dollar, and several family credits are partly or wholly refundable, meaning they can produce a refund even if you owe no tax. The difference is explained in Tax Deductions vs Tax Credits: Why a Credit Is Usually Worth More.
Child Tax Credit
For 2026, Rev. Proc. 2025-32 sets the maximum Child Tax Credit at $2,200 per qualifying child. The refundable portion, called the Additional Child Tax Credit, is up to $1,700 per child for families with little or no tax liability, and you need at least $2,500 of earned income to claim it, according to the IRS.
The full credit is available if your income is not more than $200,000, or $400,000 on a joint return; above that, a partial credit may apply. To qualify, the IRS says the child generally must:
- Be under 17 at the end of the year.
- Be your son, daughter, stepchild, eligible foster child, sibling, step-sibling or half-sibling, or a descendant of one of them, such as a grandchild, niece or nephew.
- Have lived with you for more than half the year and not provided more than half of their own support.
- Be a U.S. citizen, U.S. national or U.S. resident alien.
You, your spouse if filing jointly, and each qualifying child must have a Social Security number valid for employment, issued before the return’s due date including extensions. The credit is claimed on Form 1040 with Schedule 8812.
Credit for Other Dependents
If a dependent does not qualify for the Child Tax Credit, for example a child who has turned 17, you may be able to claim the Credit for Other Dependents. The IRS sets the maximum at $500 per dependent, reduced above $200,000 of adjusted gross income ($400,000 joint). It is not refundable.
Earned Income Tax Credit
The EITC is a refundable credit for workers who earn under certain income levels, so it can produce a refund larger than the tax you paid. Its value depends on income and the number of qualifying children. The 2026 figures from Rev. Proc. 2025-32:
| Qualifying children | Maximum credit | Credit ends at income of (joint) | Credit ends at income of (other filers) |
|---|---|---|---|
| None | $664 | $26,820 | $19,540 |
| One | $4,427 | $58,863 | $51,593 |
| Two | $7,316 | $65,899 | $58,629 |
| Three or more | $8,231 | $70,244 | $62,974 |
The income limit is based on adjusted gross income or earned income, whichever is greater. For 2026 the credit is not available if your investment income exceeds $12,200. The IRS notes that it cannot issue refunds that include the EITC or the Additional Child Tax Credit before mid-February, and that applies to the entire refund.
Tip: Many eligible workers miss the EITC because they do not think their income is high enough to file. The credit is refundable, so filing can be worth it even if you owe no tax. The IRS Interactive Tax Assistant can check eligibility.
Child and Dependent Care Credit
This credit helps pay for care of a child under 13, or a spouse or dependent who cannot care for themselves, so you can work or look for work. The 2025 tax law enhanced it: beginning with tax year 2026, the IRS says the maximum credit rate rises from 35% to 50% of qualifying expenses. The expense limits stay at $3,000 for one qualifying person and $6,000 for two or more. How much you receive depends on your income.
Day care for a qualifying child under 13 can count. Overnight camps, schooling costs and expenses that are not work-related generally do not, according to the IRS.
Adoption credit
For 2026 the maximum adoption credit is the amount of qualified adoption expenses up to $17,670 per child, and up to $5,120 of it may be refundable. The credit begins to phase out above $265,080 of modified adjusted gross income and is gone at $305,080.
Trump Accounts
The 2025 law also created a new savings account for children, which the IRS calls Trump Accounts. Parents, guardians and others can open one for an eligible child; individuals and employers can contribute up to $5,000 a year combined, with employers able to contribute up to $2,500 toward an employee’s or dependent’s account. A Treasury pilot program deposits $1,000 into the account of each eligible child. Money generally cannot be withdrawn before the year the child turns 18, after which the account is treated much like a traditional IRA. Check IRS.gov for current guidance, as rules are still being issued.
Putting it together
A family with two young children, two working parents and day care costs may be able to combine the Child Tax Credit, the Child and Dependent Care Credit and, at lower incomes, the EITC on one return. Education costs add another layer; see Education Tax Credits: The American Opportunity and Lifetime Learning Credits. And if you are weighing the standard deduction against itemizing, family credits apply either way; see Standard vs Itemized Deductions: How to Choose for 2026.
Eligibility rules for each credit have details not covered here. The IRS Interactive Tax Assistant and a qualified tax professional can confirm what your family can claim.