# Child tax credit 2026 income limit: when the phaseout starts and ends

Source: https://taxbracketsdesk.com/child-tax-credit/child-tax-credit-income-limit
Publisher: Tax Brackets Desk (taxbracketsdesk.com), independent editorial site
Topic: Child Tax Credit
Last updated: 2026-09-18

> The child tax credit 2026 income limit is $200,000 of modified adjusted gross income for single, head of household and married filing separately, and $400,000 for married filing jointly. Above that, the credit drops by $50 for each $1,000 or part of $1,000. With two children, a joint return loses the whole credit once MAGI passes $487,000. There is also a floor: the refundable part needs more than $2,500 of earned income.

## Key facts

- Phaseout starts, married filing jointly: $400,000 MAGI
- Phaseout starts, all other filers: $200,000 MAGI
- Reduction rate: $50 per $1,000 (5%), rounded up to the next $1,000
- Income measure: AGI plus excluded foreign and Puerto Rico income
- Minimum for any refund: More than $2,500 of earned income

## Child tax credit 2026 income limit by filing status

The full $2,200 per child is available until modified AGI passes the threshold for your filing status. These are the same thresholds used since 2018. They are fixed in section 24 of the tax code and were not adjusted for 2026.

| Filing status | Full credit up to | Reduction above threshold |
| --- | --- | --- |
| Married filing jointly | $400,000 | $50 per $1,000 |
| Single | $200,000 | $50 per $1,000 |
| Head of household | $200,000 | $50 per $1,000 |
| Married filing separately | $200,000 each | $50 per $1,000 |
| Qualifying surviving spouse | $200,000 | $50 per $1,000 |

Child tax credit phaseout thresholds, tax year 2026

The threshold is not an on-off cliff. Earning $1 over it costs $50, not the whole credit. The credit only reaches zero well above the threshold, and how far above depends on how many children you claim.

## Is the limit based on AGI

It is based on **modified AGI**, which for most people is simply the adjusted gross income on Form 1040, line 11b. Schedule 8812 adds back three kinds of excluded income:

- Income from Puerto Rico excluded by a bona fide resident
- The foreign earned income and housing exclusions from Form 2555
- Income excluded by residents of American Samoa on Form 4563

Because AGI is figured after pre-tax retirement contributions and other adjustments, putting more into a traditional 401(k) or an HSA lowers the number that is tested. Itemized deductions and the standard deduction do not, since they come after AGI. See how taxable income is calculated for where each item sits.

## How the child tax credit phase out works: the $50 per $1,000 rule

Schedule 8812, lines 9 to 12, does the math in four moves:

1. Add up the credit before the limit: $2,200 per qualifying child plus $500 per other dependent (line 8).
2. Subtract the threshold from your MAGI (line 10). If the result is zero or less, you keep the full credit.
3. Round any positive result **up** to the next multiple of $1,000. An excess of $425 becomes $1,000; $1,025 becomes $2,000.
4. Multiply by 5% and subtract from the credit (lines 11 and 12). If the reduction equals or exceeds the credit, you get nothing.

The reduction applies to the combined child tax credit and credit for other dependents before the refundable part is figured. So a family in the phaseout loses the same dollars whether they would have received the credit as a lower tax bill or as a refund.

## Worked examples at $220,000 and $420,000

### Head of household, two children, MAGI $220,000

Credit before the limit is $4,400. MAGI is $20,000 over the $200,000 threshold, already a multiple of $1,000. 5% of $20,000 is $1,000, so the credit is **$3,400**.

### Married filing jointly, two children, MAGI $420,000

Same result on a joint return: $20,000 over $400,000, a $1,000 reduction, and a **$3,400** credit. At this income the tax bill is far larger than the credit, so the full $3,400 lowers tax and none is refundable.

### Where the rounding bites: MAGI $225,500

A head of household with two children and MAGI of $225,500 is $25,500 over. That rounds up to $26,000, and 5% gives a $1,300 reduction, leaving $3,100. Without the rounding rule the loss would have been $1,275.

## Where the credit reaches zero

Each $2,200 of credit takes $44,000 of income above the threshold to erase. The table shows the MAGI above which nothing is left, assuming qualifying children only and no other dependents.

| Qualifying children | Credit before limit | Single or head of household | Married filing jointly |
| --- | --- | --- | --- |
| 1 | $2,200 | $243,000 | $443,000 |
| 2 | $4,400 | $287,000 | $487,000 |
| 3 | $6,600 | $331,000 | $531,000 |
| 4 | $8,800 | $375,000 | $575,000 |

MAGI above which the 2026 child tax credit is fully phased out

At exactly those amounts, $50 of credit remains; one dollar more rounds the excess up and removes it. Families near these points may find that a larger pre-tax retirement contribution keeps part of the credit.

## Do married couples get a higher limit

Yes, $400,000 instead of $200,000, which is exactly double. So for most couples marriage does not change the threshold per person. Where it can bite is a couple in which both partners earn well.

Take two parents with two children who each earn $250,000. Unmarried, the parent claiming both children tests $250,000 against $200,000, loses $2,500 and keeps $1,900. Married filing jointly, their combined $500,000 is $100,000 over $400,000, a $5,000 reduction that wipes out the $4,400 credit. Filing separately rarely helps, since the separate threshold is only $200,000 each and other tax rules become less favorable. See the [marriage penalty](https://taxbracketsdesk.com/federal-tax-brackets/marriage-penalty-tax) page for the wider picture.

## The minimum income for the refundable part

The child tax credit income limit also works at the bottom. When your tax is too small to use the credit, the refundable part equals 15% of earned income above $2,500, up to $1,700 per child. Earnings needed to reach the full refundable amount:

| Qualifying children | Maximum refundable | Earned income needed |
| --- | --- | --- |
| 1 | $1,700 | About $13,834 |
| 2 | $3,400 | About $25,167 |
| 3 | $5,100 | About $36,500 (or use the alternative method) |

Earned income needed for the maximum refundable credit, 2026

With three or more children, Part II-B of Schedule 8812 lets you use Social Security and Medicare taxes withheld (less any earned income credit) if that gives a larger result. The [additional child tax credit](https://taxbracketsdesk.com/child-tax-credit/additional-child-tax-credit) page covers both methods, and our [child tax credit](https://taxbracketsdesk.com/child-tax-credit) hub covers the other eligibility rules.

## Common questions

### What is the income limit for the child tax credit in 2026?

The credit starts to phase out above $200,000 of modified AGI, or $400,000 if married filing jointly. There is no single cutoff; the credit shrinks by $50 per $1,000 until it reaches zero.

### How fast does the child tax credit phase out?

At 5% of income over the threshold, which is $50 for each $1,000. Any partial $1,000 counts as a full $1,000.

### Can I make too much for the child tax credit?

Yes. For one child the credit is gone once MAGI passes $243,000 ($443,000 joint). Each extra child raises that point by $44,000.

### Is the child tax credit income limit adjusted for inflation?

No. The $200,000 and $400,000 thresholds are fixed in the tax code. The 2027 thresholds will be the same unless Congress changes them.

### Do 401(k) contributions help me keep the child tax credit?

They can. Pre-tax contributions to a traditional 401(k) reduce AGI, and a lower MAGI means a smaller phaseout reduction. Roth contributions do not reduce AGI.

## Sources

- [IRS: Child Tax Credit](https://www.irs.gov/credits-deductions/individuals/child-tax-credit)
- [Schedule 8812 (Form 1040) 2026, draft](https://www.irs.gov/pub/irs-dft/f1040s8--dft.pdf)
- [Instructions for Schedule 8812 (2026), draft](https://www.irs.gov/pub/irs-dft/i1040s8--dft.pdf)
- [Publication 505 (2026)](https://www.irs.gov/pub/irs-pdf/p505.pdf)
- [Rev. Proc. 2025-32](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf)