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Child Tax Credit Calculator 2026

Calculate your Child Tax Credit ($2,000/child), income phase-outs, refundable ACTC portion, and how to allocate the credit after divorce.

Updated April 2026 IRC §24 · IRS Schedule 8812 Private — runs in your browser
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Combined household AGI
Child Tax Credit — Married Filing Jointly
$4,000
Full Credit ($2,000 × 2)$4,000
Phase-Out ReductionNone
Refundable (ACTC)$3,400
Phase-Out Starts at$400,000 AGI
MFJ phase-out begins at $400,000 AGI, reducing the credit by $50 per $1,000 over the threshold. The $2,000 credit is non-refundable; up to $1,700/child is refundable as ACTC.
Advanced Calculator

Phase-out visualization chart by income level, and married filing jointly vs single comparison side-by-side.

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Your Child Tax Credit (2026)
$4,000 credit
Full Credit$4,000
Phase-Out Reduction−$0
Refundable Portion$3,400
Phase-Out Threshold$400,000
Credit Phase-Out by Income
$350,000
$4,000
$370,000
$4,000
$390,000
$4,000
$410,000
$3,500
$430,000
$2,500
$450,000
$1,500
$470,000
$500
$490,000
$0
$510,000
$0
$530,000
$0
$550,000
$0
$570,000
$0
$590,000
$0
Professional Simulator

Full tax optimization (CTC + EITC + CDCC), divorce allocation via Form 8332, state credits integration, and 5-year multi-year projection.

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$
$
Total Child-Related Tax Credits
$5,200 total credits
$2,000/child
$4,000
Child Tax Credit
Earned income
$0
EITC
Care expenses
$1,200
CDCC
Federal Tax Before Credits$4,923
After All Credits$0
Effective Tax Rate0.0%
Credits Save$5,200

How the Child Tax Credit Calculator Works

The Child Tax Credit (CTC) provides up to $2,000 per qualifying child under age 17. Up to $1,700 of this credit is refundable as the Additional Child Tax Credit (ACTC), meaning you can receive it as a refund even if it exceeds your tax liability. The credit phases out at higher incomes and is subject to specific rules after divorce.

For 2024: the phase-out starts at $400,000 AGI for Married Filing Jointly and $200,000 for all other filers (Single, Head of Household, Married Filing Separately). The credit reduces by $50 for every $1,000 of income over the threshold.

After divorce, the custodial parent claims the credit by default. However, using IRS Form 8332, the custodial parent can release the claim to the non-custodial parent — a useful tool for tax optimization and divorce negotiations.

Child Tax Credit Formula

2024 Child Tax Credit: $2,000 per qualifying child under age 17 Refundable portion (ACTC): up to $1,700/child ACTC = Min($1,700 × children, Earned Income Over $2,500 × 15%) Phase-Out: MFJ threshold: $400,000 AGI Single/HOH/MFS: $200,000 AGI Reduction rate: $50 per $1,000 over threshold After Divorce: Custodial parent claims by default Form 8332 releases claim to non-custodial parent ACTC can only be claimed by the custodial parent (even if NCP claims the dependency exemption)

Important: even if the non-custodial parent claims the dependency exemption (via Form 8332), the custodial parent retains the right to claim the Earned Income Tax Credit and the refundable portion of the Child Tax Credit (ACTC). Only the non-refundable portion transfers with Form 8332.

Example Calculation

Example: Divorced couple, 2 children, negotiating claim allocation

Custodial parent AGI$65,000
Non-custodial parent AGI$120,000
Option A: CP claims both children$4,000 credit
Option B: Each claims one childCP: $2,000 + NCP: $2,000 = $4,000
Option C: NCP claims both (Form 8332)NCP: $4,000 (non-refundable)
CP refundable (ACTC) either way$1,700–$3,400

In this case, splitting the claims (one child each) maximizes total family tax benefit since both parents are below the phase-out threshold. The non-refundable credit is worth more to the higher-income NCP if their tax liability is high enough to absorb it.

Official Sources & Legal References

Frequently Asked Questions

By default, the custodial parent (the parent with whom the child lives for more nights during the year) claims the Child Tax Credit. However, the custodial parent can sign IRS Form 8332 to release the dependency exemption to the non-custodial parent, which also transfers the non-refundable portion of the Child Tax Credit. The custodial parent always retains the right to claim the Earned Income Tax Credit and the refundable Additional Child Tax Credit (ACTC), regardless of what Form 8332 says. Many divorce agreements specify which parent claims each child in which years.
For 2024, the Child Tax Credit begins to phase out when AGI exceeds $400,000 (Married Filing Jointly) or $200,000 (Single, Head of Household, Married Filing Separately). The credit reduces by $50 for every $1,000 of income above the threshold. For example, a MFJ couple with $410,000 AGI would lose $500 from the credit (10 thousands × $50). At $440,000 AGI with two children, the full $4,000 credit would be eliminated (40 thousands × $50 = $2,000 reduction × 2 = $4,000).
The Child Tax Credit (CTC) is $2,000 per qualifying child. The first portion — up to $400 per child for 2024 — is non-refundable, meaning it can only reduce your tax liability to zero. Up to $1,700 per child can be refunded as the Additional Child Tax Credit (ACTC) even if it exceeds your tax liability. To qualify for ACTC, you must have earned income of at least $2,500. The refundable amount equals 15% of your earned income above $2,500, capped at $1,700 per child. Low-income families with earned income often benefit most from the refundable ACTC.
Yes — and this is a common divorce arrangement. The custodial parent and non-custodial parent can alternate claiming the child in different tax years. For example, Parent 1 claims in odd years, Parent 2 claims in even years. This is typically formalized through alternating Form 8332 releases. Some couples split children if they have two or more — each parent claims one child. Alternating or splitting claims can optimize total family tax savings, especially if incomes differ significantly between parents.
In most states, child support calculations use gross income rather than after-tax income, so the Child Tax Credit doesn't directly reduce support obligations. However, the credit is valuable enough that allocation (which parent claims which child) is often negotiated as part of divorce settlement. Some attorneys argue the tax benefit should be factored into the overall financial picture. If both parents want the credit for the same child, only the custodial parent can claim it without Form 8332 — attempting to both claim the same child will trigger an IRS audit for the duplicate claim.

When to Consult a Tax Professional About the Child Tax Credit

The Child Tax Credit rules after divorce are nuanced. Consult a CPA or Enrolled Agent if: you and your ex disagree on who claimed the child (duplicate claims trigger IRS audits); you want to optimize the Form 8332 release arrangement over multiple years; you're considering Head of Household status and want to confirm eligibility; your income is near the phase-out threshold and timing of income recognition matters; or proposed CTC expansion legislation may affect your refundable amount. The ACTC refundability rules and interaction with EITC are particularly complex for lower-income custodial parents.

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Not legal or financial advice. This calculator provides estimates based on published guidelines and formulas. Family law varies by jurisdiction and individual circumstances. Always consult a qualified attorney or financial advisor before making decisions. Full disclaimer · Our methodology