If you're a parent wondering whether recent tax changes will actually put more money in your pocket, you're asking the right question.
The Child Tax Credit remains at $2,200 per child for 2026, and under current law, this enhanced benefit is set to continue with annual inflation adjustments.
This matters because families have been caught in a cycle of uncertainty, never knowing if tax relief would disappear the following year. Now you can plan with confidence under the current tax framework when planning your family's financial future.
After helping countless clients navigate tax changes over the years, I've seen how these credits can make a real difference when claimed correctly.
Here's what most people overlook: it's not just about getting the money, it's about using it strategically.
Let's break down what's really going on, and what it means for you.
The Child Tax Credit remains at $2,200 per qualifying child for 2026, with up to $1,700 per child available as a refundable credit (known as the Additional Child Tax Credit).
Under current law, this amount is subject to annual inflation adjustments going forward.
The income phase-out limits remain unchanged: the credit begins to phase out at $200,000 for single filers and $400,000 for married couples filing jointly. The credit reduces by $50 for each $1,000 (or part thereof) over these thresholds.
The Earned Income Tax Credit for 2025 (filed in 2026) provides maximum credits of: $8,046 for families with three or more children, $7,152 for two children, and $4,328 for one child, subject to income limits.
Before recent legislation, families faced what tax professionals called a "tax cliff", credits would have been cut significantly when temporary provisions expired. Under current law, you can plan with greater confidence.
For a family with two children, this represents $400 annually compared to the previous $2,000 credit structure. Over time, with inflation adjustments built into current law, this could mean thousands in additional support.
The stable income thresholds help dual-income households and entrepreneurs with variable earnings who previously might have qualified some years but not others.
Here's what concerns me:
many eligible families still miss out on hundreds or thousands in refunds. Tax complexity creates decision fatigue, leading to incomplete filings or rushed submissions that leave money on the table.
Start with your 2025 filing.
Verify you claimed all family credits. The Child Tax Credit, Earned Income Tax Credit, and Child and Dependent Care Credit can stack up to significant refunds when properly claimed.
Plan before the refund arrives.
Decide how you'll split any refund between immediate needs, emergency savings, and longer-term goals like retirement or education accounts. This prevents the "windfall spending" trap where extra money just disappears.
Consider adjusting your withholding.
Large refunds mean you're giving the government an interest-free loan. You might prefer having more money in your paychecks throughout the year instead.
Track expenses year-round.
Keep records of childcare costs, education expenses, and medical bills. These support various credits and deductions that add up over time.
The real opportunity isn't just the $2,200 per child credit, it's using this reliable foundation under current law to build stronger financial habits.
Consider this approach: use half of any tax refund for immediate family needs, put 25% toward your emergency fund, and invest the remaining 25% in your retirement or your children's education accounts.
Small, consistent steps create lasting change.
When you know this support is built into current tax law, you can make strategic decisions with greater confidence about your family's financial planning.
The Child Tax Credit provisions under current law represent more than just extra money, they're a foundation you can build on with confidence.
Whether it's adjusting your withholding, planning how to use your refund, or simply staying organized with your records, consistent action creates lasting change.
If managing money feels overwhelming, especially with everything else on your plate as a parent, you're not alone.
Financial progress takes time, but having reliable support makes the journey much clearer.
Infocus has resources designed to make financial planning simpler and less stressful. You can download our free ADHD & Money eBook to discover why traditional budgets often fail and what actually works.
Your financial security matters, and you have more support available than you might realize.
This information reflects IRS data as of October 2025 and is for educational purposes only. Tax laws are subject to change; always verify current rules or consult a licensed tax professional before filing.