Federal Child Tax Credit for 2026

For tax year 2026, the federal Child Tax Credit is $2,000 per qualifying child under age 17. Up to $1,700 of that is refundable through the Additional Child Tax Credit (ACTC), meaning you can get money back even if your tax liability is zero.

The credit starts phasing out at $200,000 of modified adjusted gross income for single filers and $400,000 for married filing jointly. It reduces by $50 for every $1,000 over the threshold. A married couple earning $440,000 would see their credit reduced by $2,000 per child — effectively zeroed out for one child.

To qualify, your child must have a Social Security number, live with you for more than half the year, and not provide more than half of their own support. You claim it on Schedule 8812.

New York’s Empire State Child Credit

New York State offers the Empire State Child Credit, which is the greater of $100 per qualifying child or 33% of the portion of the federal child tax credit attributable to your New York income. For most NYC families, this means an additional $100-$330 per child on your state return.

There’s also the Empire State Child Credit for noncustodial parents, worth up to $100 per child if you meet specific income and support requirements. Both credits are claimed on Form IT-213.

New York’s credit doesn’t have the same income phase-out as the federal credit. If you qualify for the federal CTC, you almost certainly qualify for the state credit too.

NYC-Specific Family Tax Benefits

Beyond the child tax credit itself, NYC families should know about these related benefits:

• Child and Dependent Care Credit: Federal credit of 20-35% of up to $3,000 in care expenses per child ($6,000 for two or more). New York State has its own version worth up to 110% of the federal credit for lower-income families.
• NYC School Tax Credit: A flat $125 for single filers or $63 for married filing separately. Not huge, but it’s automatic if you file a city return and your income is under $250,000.
• Earned Income Tax Credit (EITC): The federal EITC can be worth up to $7,830 for a family with three or more kids in 2026. New York State adds 30% of the federal amount, and NYC adds another 5%. A qualifying family could receive over $10,000 combined.
• NYC Enhanced Real Property Tax Credit: If your household income is under $200,000 and you rent or own in NYC, this credit can offset a portion of property taxes embedded in your rent.

Income Phase-Out Math for NYC Families

NYC household incomes tend to skew higher than the national median. Here’s what the CTC phase-out looks like in practice:

• Married, 2 kids, $350,000 AGI: Full $4,000 credit (under $400,000 threshold)
• Married, 2 kids, $430,000 AGI: Credit reduced by $1,500. You get $2,500 instead of $4,000.
• Single, 1 child, $220,000 AGI: Credit reduced by $1,000. You get $1,000 instead of $2,000.
• Single, 1 child, $240,000 AGI: Credit fully phased out.

If you’re near the phase-out range, contributing to a traditional 401(k) or IRA can lower your AGI enough to preserve part or all of the credit. A $23,000 401(k) contribution could save a borderline family the full $2,000 per child.

How to Claim the Credit

On your federal return, file Schedule 8812 (Credits for Qualifying Children and Other Dependents). The IRS will calculate whether you get the full credit or the refundable ACTC portion based on your earned income. For New York, file Form IT-213 with your state return. If you use tax software, both forms are generated automatically when you enter your dependents’ information.