A $2,200 child tax credit, for good

Parents buy kids' shoes a size up for a simple reason: feet only grow one way. A pair that fits in August pinches by Christmas, and car seats, jeans and grocery bills grow right along with the child.

Under the 2017 tax law, the child tax credit was headed the other way. It was set to shrink on January 1, 2026, from $2,000 per child to $1,000, and the income level where it starts to phase out for married parents would have dropped from $400,000 to $110,000, according to the Tax Foundation. That was the opposite of buying a size up.

President Trump's July 4, 2025, tax law turned that around. It raised the credit to $2,200 per child starting with 2025 returns, made it permanent and tied it to inflation, so it can grow with prices instead of quietly losing value. The first adjustment left it at $2,200 for 2026.

How the credit works

Parents can claim up to $2,200 for each child under 17. Up to $1,700 per child is refundable, which means a family that owes little or no income tax can still get that part back as long as it earned at least $2,500. The full credit goes to married couples earning up to $400,000 and other filers up to $200,000. You claim it on Schedule 8812 of your Form 1040.

Take a couple in Ohio with three kids under 17 and $130,000 of income. Under the old schedule, their credit would have topped out at $3,000, and because they earn more than $110,000, it would have started shrinking from there. Under the new law, they can claim $6,600.

Next to the $2,000 families got in 2024, $200 more per child is a modest raise. The bigger win is the cut that never came. Treasury reports that nearly 40 million families claimed the credit in the first filing season, and 65% of them earned under $100,000.

The Social Security number rule draws the sharpest criticism. Each child needs a Social Security number valid for work, issued before the return is due, and so does at least one parent on the return, so a citizen child can miss out if neither parent has one. That is a real cost for those families, and I still think the line is fair: a credit paid from the Treasury should be tied to the same number Americans use to work and pay into Social Security.

What to check next year

Before you file your 2026 return, check three things. Every child you claim needs a Social Security number valid for work, issued before the filing deadline. At least one parent on the return needs one too. And a child who turned 17 during 2026 no longer counts for this credit, though you may still qualify for the $500 credit for other dependents.

The old credit was set to shrink just as the kids kept growing. The new one is a size up, and it grows with prices from here.