Child Tax Credit &
EIC Calculator 2026
Estimate your Child Tax Credit (up to $2,200/child) and Earned Income Credit (up to $8,231) based on your income, filing status, and qualifying children.
How to use
Enter filing status and number of qualifying children (under 17)
Enter your AGI and earned income — most wage earners use the same amount
Add investment income if any (over $12,200 disqualifies EIC)
See your CTC breakdown (non-refundable + ACTC) and EIC side by side
CTC & EIC Calculator 2026
Child Tax Credit + Earned Income Credit estimate
Use your adjusted gross income (AGI) and earned income. For most wage earners they are the same or very close.
Wages, self-employment, tips, etc.
EIC disallowed if over $12,200
Leave blank to auto-estimate
Total estimated credits (CTC + EIC)
$6,295
CTC $4,000 + EIC $2,295 · Estimates only
How the Child Tax Credit works
The Child Tax Credit (CTC) is worth up to $2,200 per qualifying child under age 17 at the end of the tax year (raised from $2,000 by the One Big Beautiful Bill Act, P.L. 119-21). The child must be your son, daughter, stepchild, foster child, sibling, or descendant, and must have a valid Social Security number. The credit first reduces your federal income tax dollar for dollar (non-refundable).
Phase-out thresholds
Single / HOH
$200,000
Married filing jointly
$400,000
Reduced by $50 per $1,000 over the threshold.
Refundable portion — ACTC
The Additional Child Tax Credit (ACTC) is the lesser of: (1) 15% of earned income over $2,500, or (2) unused CTC — capped at $1,700 per child. Requires at least $2,500 earned income. Claiming ACTC delays your refund until mid-February.
How the Earned Income Credit works
The Earned Income Credit (EIC) is a refundable credit for workers with low to moderate income. The amount depends on your filing status, income, and number of qualifying children. Investment income must be $12,200 or less or EIC is completely disallowed.
Maximum EIC by children — 2026
Source: IRS Rev. Proc. 2025-32. Investment income limit: $12,200.
Who qualifies for the Child Tax Credit?
To claim the Child Tax Credit, the child must be:
- Under 17 at the end of the tax year
- Your qualifying dependent (son, daughter, stepchild, sibling, foster child, or their descendant)
- Have a valid Social Security number
- Live with you for more than half the year (with exceptions)
- Not provide more than half of their own support
No minimum income for the non-refundable portion. Need $2,500+ earned income to receive the refundable ACTC.
Who qualifies for the Earned Income Credit?
To claim the EIC, you must:
- Have earned income (wages, self-employment, tips)
- Have a valid Social Security number (and spouse if MFJ)
- Meet income limits for your filing status and number of children
- Have investment income of $12,200 or less in 2026
- Not file as married filing separately
EIC qualifying child rules can differ slightly from CTC child rules. Use the IRS EITC Assistant to verify exact eligibility.
How to claim the Child Tax Credit and EIC
You claim both credits on your federal tax return (Form 1040). The Child Tax Credit and Additional Child Tax Credit are reported on Schedule 8812 if applicable. The Earned Income Credit is reported on the EIC worksheet and on Form 1040. Most tax software calculates these automatically when you enter your income and dependents.
CTC / ACTC
Schedule 8812
Earned Income Credit
Form 1040, EIC Worksheet
Filing Deadline
April 15, 2027
What the One Big Beautiful Bill changed for 2026: $2,200 CTC, inflation indexing, and the $500 ODC
The One Big Beautiful Bill Act (P.L. 119-21), enacted in 2025, made significant permanent changes to the Child Tax Credit. Here's what changed and what stayed the same:
| Item | Before OBBBA (2024) | After OBBBA (2025+) |
|---|---|---|
| CTC per qualifying child | $2,000 | $2,200 (inflation-indexed from 2026) |
| ACTC refundable cap per child | $1,700 | $1,700 (unchanged) |
| Phase-out threshold (single/HOH) | $200,000 (expiring) | $200,000 (now permanent) |
| Phase-out threshold (MFJ) | $400,000 (expiring) | $400,000 (now permanent) |
| Earned income floor for ACTC | $2,500 (expiring) | $2,500 (now permanent) |
| Taxpayer SSN requirement | Not required | Taxpayer (or one spouse) must have SSN valid for employment |
| Credit for Other Dependents | $500 (expiring) | $500 (now permanent) |
Inflation indexing starting 2026
The $2,200 figure applies for tax year 2025 and 2026. From 2026 onward, the CTC maximum is indexed to inflation in increments of $100. The IRS will publish the annual amount in the fall Revenue Procedure (like Rev. Proc. 2025-32 for 2026). Watch for the 2027 figure in fall 2026.
The $500 Credit for Other Dependents (ODC)
Dependents who don't qualify for the $2,200 CTC — including children ages 17–18, full-time students ages 19–23, and elderly parents you support — may be eligible for the $500 non-refundable ODC. It uses the same $200K/$400K phase-out thresholds and is claimed on Schedule 8812 alongside the CTC.
Source: IRS.gov/ctc · One Big Beautiful Bill Act, P.L. 119-21 (2025) · Rev. Proc. 2025-32 · IRC §24
The ACTC refund formula: exactly what low-income families receive — and why mid-February matters
The Additional Child Tax Credit (ACTC) is the refundable part of the CTC. If your tax liability is less than your CTC, you can get up to $1,700 per child back as a cash refund. The formula is precise:
ACTC Refund = 15% × (Earned Income − $2,500), capped at $1,700 per child
Earned income = wages + tips + net self-employment income (not investment income, not unemployment)
ACTC examples — 2026
| Earned Income | Children | Calculation | ACTC Refund |
|---|---|---|---|
| $5,000 | 1 | 15% × ($5,000 − $2,500) = $375 | $375 |
| $10,000 | 2 | 15% × ($10,000 − $2,500) = $1,125 (cap is $3,400) | $1,125 |
| $15,000 | 1 | 15% × ($15,000 − $2,500) = $1,875 → capped at $1,700 | $1,700 (cap) |
| $20,000 | 3 | 15% × ($20,000 − $2,500) = $2,625 (cap is $5,100) | $2,625 |
| $30,000 | 2 | 15% × ($30,000 − $2,500) = $4,125 → capped at $3,400 | $3,400 (cap) |
The per-child cap is $1,700. Cap for 2 children = $3,400, for 3 = $5,100, etc.
The mid-February refund delay (PATH Act)
Under the Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot release refunds that include the ACTC or EIC before mid-February — even if you file on January 1. This delay applies to the entire refund, not just the ACTC portion. For 2026 returns (filed in early 2027), the IRS typically begins releasing these refunds around February 15, 2027. Check Where's My Refund on IRS.gov starting in mid-February.
Source: IRC §24(d) (ACTC formula) · PATH Act (P.L. 114-113) · Rev. Proc. 2025-32 · IRS.gov/ctc
The EIC investment income cliff and phase-out: where the most dollars are lost
Two EIC rules surprise the most filers. First, a single dollar of investment income above $12,200 wipes out the entire Earned Income Credit — there is no phase-out, it is a hard cliff. Second, the EIC phase-out is steep enough to create effective marginal tax rates exceeding 35% in some income ranges.
The investment income cliff ($12,200)
- Investment income includes taxable interest, ordinary dividends, capital gains (net), and passive income from rentals
- $12,200 or below: EIC calculated normally based on earned income
- $12,201 or above: EIC = $0, regardless of earned income or number of children
- A worker earning $45,000 wages with $12,500 in stock dividends loses up to $8,231 in EIC
Other hard disqualifiers
- Married Filing Separately: MFS filers are completely barred from EIC — no exceptions (IRC §32(d))
- No valid SSN: you, your spouse (if MFJ), and any qualifying child must each have an SSN issued before the return due date
- Qualifying child of another: if you can be claimed as a dependent by someone else and you have no qualifying child of your own, you cannot claim EIC
- Foreign income exclusion: claiming Form 2555 (Foreign Earned Income Exclusion) disqualifies you from EIC
EIC phase-out range — single filer, 2026
Credit is zero at the “completed phaseout” AGI level; partial credit applies in between
| Children | Max EIC | Phase-out begins | EIC = $0 at AGI |
|---|---|---|---|
| 0 | $664 | $10,860 | $19,540 |
| 1 | $4,427 | $23,890 | $51,593 |
| 2 | $7,316 | $23,890 | $58,629 |
| 3+ | $8,231 | $23,890 | $62,974 |
Source: IRS Rev. Proc. 2025-32, Section 3.06. MFJ thresholds are approximately $7,080 higher.
Source: IRC §32(i) (investment income limit) · IRC §32(d) (MFS bar) · IRS Rev. Proc. 2025-32 · IRS EITC Assistant (irs.gov)
The Child Tax Credit and Earned Income Credit totals above come from the income, filing status, and number of qualifying children you enter—not a third-party feed. We start with gross CTC before phase-out, reduce it when modified adjusted gross income (MAGI) is over the threshold, apply the non-refundable portion against estimated federal tax, then calculate any refundable Additional Child Tax Credit (ACTC). EIC is calculated separately using IRS phase-in and phase-out ranges. Below are the formulas, the order we follow, and a worked example you can check by hand.
Formulas
| Line | Formula |
|---|---|
| Gross Child Tax Credit | Number of qualifying children × $2,000 per child |
| CTC phase-out reduction | $50 × (each $1,000 or fraction of MAGI over threshold); capped at gross CTC |
| CTC after phase-out | Gross CTC − phase-out reduction (minimum $0) |
| Non-refundable CTC used | Lesser of (CTC after phase-out, federal tax before credits) |
| Additional Child Tax Credit (raw) | 15% × (earned income − $2,500), capped at $1,700 per child |
| Refundable ACTC paid | Lesser of (raw ACTC, unused CTC after tax is reduced to zero) |
| Total CTC benefit | Non-refundable CTC used + refundable ACTC |
| Federal tax before credits (estimate) | Taxable income = MAGI − standard deduction; tax from 2026 federal brackets |
| Earned Income Credit — plateau | Maximum EIC when AGI is at or below phase-out start |
| Earned Income Credit — phase-out | Max EIC × (phase-out end − AGI) ÷ (phase-out end − phase-out start) |
| Earned Income Credit — disqualifiers | $0 if investment income > $12,200 or AGI ≥ phase-out end |
| Combined credits | Total CTC + EIC (shown separately; not netted against each other here) |
Order of operations
Count qualifying children
Gross CTC = children × $2,000
We use the number of qualifying children you enter. A qualifying child for CTC is generally under age 17 at year-end with a valid SSN—we do not verify relationship or residency rules on this page.
Apply CTC income phase-out
Reduction = $50 × ceiling(MAGI over threshold ÷ $1,000)
Phase-out begins at $200,000 MAGI for single, head of household, and married filing separately, or $400,000 for married filing jointly. Each $1,000 (or fraction) over the threshold reduces CTC by $50 until the credit reaches zero.
Estimate federal tax before credits
Tax = brackets(MAGI − standard deduction)
Unless you enter your own tax-before-credits figure, we estimate federal income tax using the standard deduction and 2026 federal brackets for your filing status. Itemized deductions, other credits, and AMT are not included.
Apply non-refundable CTC
Non-refundable = Lesser of (CTC after phase-out, tax before credits)
The Child Tax Credit first reduces your federal income tax dollar for dollar. Any CTC that exceeds your tax liability becomes "unused" and may flow to the refundable ACTC step.
Calculate refundable ACTC
ACTC = Lesser of (15% × (earned income − $2,500), $1,700 × children, unused CTC)
You need more than $2,500 in earned income for any refundable portion. The refundable amount is 15% of earned income above $2,500, capped at $1,700 per child, and cannot exceed the unused CTC after your tax is reduced to zero.
Calculate Earned Income Credit
EIC from AGI, filing status, children, and investment income
EIC is fully refundable and uses its own income limits. If investment income exceeds $12,200, EIC is zero. Between the phase-out start and end, the credit decreases linearly. EIC qualifying-child rules can differ slightly from CTC rules.
Show combined estimate
Total credits = CTC (non-refundable + refundable) + EIC
CTC and EIC are calculated independently and added for display. On an actual return, other rules and ordering may apply; this is an estimate for planning.
Worked example
$45,000 AGI, $45,000 earned income, 2 qualifying children, Married filing jointly, 2026
Federal tax before credits ≈ $1,280 (standard deduction + 2026 brackets on $45,000 MAGI).
Gross CTC $4,000 − $0 phase-out = $4,000. Non-refundable $1,280 applied to $1,280 tax; refundable ACTC $2,720.
EIC $4,401 — AGI is in the phase-out range for 2 children (MFJ phase-out starts at $31,160).
Total estimated credits: $4,000 CTC + $4,401 EIC = $8,401.
| Line item | Amount |
|---|---|
| Modified AGI (MAGI) | $45,000 |
| Earned income | $45,000 |
| Qualifying children | 2 |
| Gross Child Tax Credit | $4,000 |
| CTC phase-out reduction | $0 |
| CTC after phase-out | $4,000 |
| Federal tax before credits (estimate) | $1,280 |
| Non-refundable CTC applied | $1,280 |
| Refundable ACTC | $2,720 |
| Total Child Tax Credit | $4,000 |
| Earned Income Credit | $4,401 |
| Combined credits | $8,401 |
MAGI is $10,000 over the $200,000 threshold → 10 × $50 = $500 reduction. CTC after phase-out: $3,500.
2026 rates and limits we use
| Parameter | What we use |
|---|---|
| CTC per qualifying child | $2,000 |
| ACTC maximum per child | $1,700 |
| CTC phase-out threshold — single / HOH / MFS | $200,000 |
| CTC phase-out threshold — married filing jointly | $400,000 |
| CTC phase-out rate | $50 per $1,000 over threshold |
| ACTC earned income floor | $2,500 |
| EIC maximum — 0 / 1 / 2 / 3+ children (2026) | $664 · $4,427 · $7,316 · $8,231 |
| EIC investment income limit (2026) | $12,200 |
| Standard deduction — single (2026) | $16,100 |
| Standard deduction — married filing jointly (2026) | $32,200 |
What we do not model on this page
We do not verify qualifying-child relationship, residency, or SSN rules; the $500 Credit for Other Dependents; itemized deductions; other credits (education, adoption, etc.); alternative minimum tax; state taxes; or married filing separately EIC disqualification (IRC §32(d))—though MFS filers still see an EIC estimate here. Tax before credits uses the standard deduction only unless you enter your own figure. Legislative changes such as the OBBBA $2,200 inflation-indexed CTC may differ from the $2,000-per-child amount used in this calculator until updated.