Child Tax Credit 2027: How Much Increase and Who Qualifies?

Child Tax Credit 2027: For families raising children, the Child Tax Credit (CTC) is one of the most valuable tax breaks in the U.S. tax code. It can reduce a tax bill dollar for dollar, and for lower-income working families a portion can arrive as a refund even when no income tax is owed. That is why every year’s inflation update is watched closely by parents, tax preparers and anyone planning a family budget.

The latest update onChild Tax Credit has just arrived. On November 5, 2026, the IRS announced the tax year 2027 adjustments, and the Child Tax Credit goes up. With the cost of housing, childcare, groceries and school expenses still weighing on households, even a modest increase matters. A family with three children gains an extra $300 in credit value, and the refundable portion rises too.

Child Tax Credit 2027

There is also a lot of confusion online about which year’s number applies when. Some articles still list $2,200 as “the 2027 credit,” while others call $2,300 a projection. The IRS has now settled the question. The $2,200 credit applies to the 2026 tax year, which you file in early 2027. The $2,300 credit applies to the 2027 tax year, which you file in 2028. Knowing which year you are planning for avoids costly mistakes with withholding and budgeting.

Eligibility has also changed in recent years. A 2025 law tightened the Social Security number rules, and the income limits that decide whether you get the full credit remain fixed in law and do not rise with inflation. In this guide, we cover the new amount, the refundable portion, who qualifies, how the income phase-out works, worked examples, and answers to common questions.

How much is the Child Tax Credit in 2027?

The maximum Child Tax Credit for 2027 is $2,300, an increase of $100 from 2026. The refundable portion is $1,800, also up $100.

The 2026 figures come from published reporting on the IRS numbers. The 2026 credit is worth up to $2,200 per qualifying child, with up to $1,700 refundable. The 2027 increase is the first inflation adjustment under the 2025 law. That law raised the maximum credit from $2,000 to $2,200 and indexed it for inflation starting in 2026.

What the increase means for your family?

These are maximums before any income phase-out.

Who qualifies for the Child Tax Credit?

IRS Publication 5811 sets out the core rules. You (or your spouse, if married filing jointly) and each qualifying child must have a valid Social Security number issued before the due date of the return, including extensions.

1. Age. The child must be under age 17 at the end of the year. A child who turns 17 during 2027 does not qualify for the Child Tax Credit for 2027, though a different credit may apply.

2. Relationship. The child must be your son, daughter, stepchild, eligible foster child, sibling, step- or half-sibling, or a descendant of any of them, such as a grandchild, niece or nephew, who can be claimed as your dependent.

3. Residency. In general, the child must live with you for more than half the year. This is sometimes called the “six months and a day rule.”

4. Citizenship status. The child must be a U.S. citizen, U.S. national or U.S. resident alien.

5. Dependency. The child must be claimable as a dependent on your return, and only one person can claim the same child for the credit.

6. Social Security numbers. This is the rule that changed most. The taxpayer and the eligible child must have a work-eligible Social Security number. An ITIN does not satisfy the requirement for the child. For married couples, the IRS rule refers to “you (or your spouse),” meaning at least one spouse must have a qualifying SSN. Some secondary sources describe this differently, so confirm your own situation in IRS Publication 5811 or the IRS Interactive Tax Assistant.

Income limits: when does the credit shrink?

The Child Tax Credit is reduced for higher earners, and these limits do not rise with inflation. The $200,000 and $400,000 phase-out thresholds are fixed by law and not indexed.

The credit is reduced by $50 for every $1,000 (or fraction thereof) above the threshold. Because the thresholds stay fixed while the credit grows, the credit becomes slightly less generous in real terms for higher-income families over time.

How the refundable portion (ACTC) works?

Not every family owes enough tax to use the full credit. The Additional Child Tax Credit (ACTC) is the refundable part. For 2027, up to $1,800 per child can come back as a refund even if your income tax is zero.

The ACTC depends on earned income. Under current law, the earnings threshold for starting to receive the Child Tax Credit is $2,500. The refund is generally 15% of earned income above that amount, up to the limit. Families with three or more children may qualify for an alternative calculation, and the Schedule 8812 instructions explain it.

Worked examples for tax year 2027

These are my own illustrations using the official numbers. They ignore other credits and deductions, so treat them as estimates.

Example 1: Single parent, two children, income $210,000

• Maximum credit: 2 × $2,300 = $4,600
• Income over the $200,000 threshold: $10,000, which is 10 steps of $1,000
• Reduction: 10 × $50 = $500
• Credit after phase-out: $4,100

Example 2: Married couple, three children, income $415,000

• Maximum credit: 3 × $2,300 = $6,900
• Income over $400,000: $15,000, which is 15 steps
• Reduction: 15 × $50 = $750
• Credit after phase-out: $6,150

Example 3: Lower-income worker, one child, earned income $20,000, no income tax owed

• Earned income above $2,500: $17,500
• 15% of $17,500 = $2,625, which is above the cap
• Refundable credit: $1,800 (the maximum for 2027)

For earned income of $10,000, the calculation is 15% of $7,500, or $1,125.

When and how do you get the money?

There are no monthly payments. This is a tax credit, so you claim it on your tax return. You complete Schedule 8812 and attach it to Form 1040 or 1040-SR. For tax year 2027, that means filing in 2028. Refunds that include the ACTC have a legal delay in the early filing season, so check the IRS schedule once the 2028 filing season is announced rather than counting on a specific date.

If you want the benefit to show up in your paychecks during 2027, adjust your withholding with the IRS Tax Withholding Estimator and a new Form W-4.

What has not changed?

• Phase-out thresholds: $200,000 and $400,000, not indexed.
• Other dependents: The $500 credit for other dependents is unchanged by law.
• Age cutoff: under 17 at year-end.
• SSN rules: the work-authorized SSN requirement from the 2025 law remains in force.

Could the credit be expanded further?

Some proposals would bring back the larger credit from the 2021 pandemic-era expansion. That expansion paid $3,000 per child, with a $600 bonus for children under 6, and was fully refundable. Following the November elections, tax analysts are discussing what a new Congress might try. Nothing has been enacted. The 2027 figures in this article are current law. Any change would need new legislation, so check IRS.gov before making financial decisions that depend on a bigger credit.

Official sources and links

Child Tax Credit for 2027 – Frequently asked questions