With recent changes to U.S. tax laws, many families are eligible for significant financial relief in 2026.

These benefits, known as the Child Tax Credit, help parents and guardians reduce their tax bills or even receive a cash refund.

Whether you usually file taxes or not, it is important to understand how these credits work so your family doesn't miss out on this support.
 

The Three Types of Credits

There are three different ways you might receive help based on your family situation:
 

• Child Tax Credit (CTC): This reduces the amount of tax you owe. If you owe the IRS money, this credit acts like a discount on that bill.
• Additional Child Tax Credit (ACTC): This is for families who owe very little or no taxes. Instead of just lowering a bill, this part is "refundable," meaning the government sends you the remaining balance as a refund check.
• Credit for Other Dependents (ODC): This is for taxpayers who support dependents who don’t qualify for the regular child credits (such as older children or elderly relatives).

 

How Much Money Can You Get?

For the 2026 tax year:
 

1. The Child Tax Credit is worth up to $2,200 for each qualifying child to help lower your tax bill.
2. The Additional Child Tax Credit can provide a refund of up to $1,700 per child for those who have little to no tax liability.

 

Who Qualifies?

To receive these credits for a child, the following rules generally apply:
 

• Age: The child must be under age 17 at the end of the year.
• Support: The child must not have provided more than half of their own financial support.
• Living Situation: The child must have lived with you for more than half of the year.
• Legal Status: You must claim the child as a dependent on your tax return.
• Citizenship: The child must be a U.S. citizen, U.S. national, or U.S. resident alien.

 

How to Claim Your Money

To get this credit, you must file a tax return. Even if you don't owe any money to the IRS, you must still file to receive the refund.
 

• The Forms: Use Form 1040 (the standard individual tax return) and attach Schedule 8812.
• The Timing: By law, the IRS cannot send out ACTC refunds before mid-February. This gives the government time to prevent fraud.
• Tracking: You can check the status of your money by using the "Where’s My Refund?" tool on the IRS website starting in mid-to-late February.

By keeping these requirements in mind and filing correctly, your family can take full advantage of these benefits to help cover the costs of raising children.

-

Subscribe to our Weekly Newsletter and get instant access to new articles straight to your inbox!