Summary: For 2026 the Child Tax Credit is full at modified AGI of $200,000 or less ($400,000 or less for married filing jointly) and shrinks by $50 for every $1,000, or fraction of $1,000, above the threshold. For one child the credit reaches zero near $244,000 ($444,000 joint); each extra child adds about $44,000 of headroom. Head of household uses the $200,000 threshold. Pre-tax contributions that lower AGI can preserve more of the credit.
Most families never think about the Child Tax Credit income limits, because the thresholds are high enough to cover the vast majority of earners. The full credit survives until $200,000 of income for most filers and $400,000 for married couples filing jointly. But if you earn near those lines, the phaseout math decides exactly how much you keep. Here is how it works, with numbers.
The credit begins to shrink once your modified adjusted gross income (MAGI) crosses a threshold that depends on filing status:
These thresholds have not been indexed for inflation since 2018, which means inflation slowly pushes more families into the phaseout band. MAGI, for this credit, is AGI on Line 11 of Form 1040 plus a few add-backs that affect very few families, mostly foreign earned income and certain territory income. For most readers, MAGI equals AGI.
For every $1,000, or any fraction of $1,000, that your MAGI exceeds the threshold, the credit is reduced by $50. The fraction rule matters: $1 over a $1,000 boundary still costs you the full $50, because the IRS rounds each slice of overage up. The formula is:
Reduction = $50 x ceil((MAGI - threshold) / $1,000)
At $210,500 for a single filer, the overage is $10,500, which rounds up to 11 slices, for a reduction of $550. The reduction applies to the combined credit, including the $500 other-dependent credit, which has the same thresholds and rate.
A $2,200 child credit survives 44 slices of $50 ($2,200 / $50 = 44), covering $44,000 of income above the threshold. That puts the zero point for one child at about $244,000 for most filers and $444,000 for joint filers. Each additional child adds another $44,000 of headroom:
Families near the zero point should still file Schedule 8812 if they have qualifying children, because even a small remaining credit reduces tax owed.
Example 1: head of household, 2 children, $215,000 MAGI. The threshold is $200,000, so the overage is $15,000, or 15 slices. Reduction: 15 x $50 = $750. Gross credit: 2 x $2,200 = $4,400. Final: $3,650.
Example 2: married filing jointly, 3 children, $430,000 MAGI. The joint threshold is $400,000, so the overage is $30,000, or 30 slices. Reduction: 30 x $50 = $1,500. Gross credit: 3 x $2,200 = $6,600. Final: $5,100.
Example 3: single, 1 child, $260,000 MAGI. Overage $60,000, or 60 slices. Reduction: 60 x $50 = $3,000, which exceeds the $2,200 credit. Final: $0. This family is past the $244,000 zero point.
Because the phaseout keys off AGI, anything that legitimately lowers AGI preserves credit. The standard levers are pre-tax 401(k) or 403(b) contributions, HSA contributions, and for the self-employed, deductible business expenses and retirement plan contributions. A family with $205,000 of wages and $6,000 of pre-tax 401(k) contributions has AGI of $199,000 and keeps the full credit. Timing income matters too: a year-end bonus that lands in January instead of December can keep you under the line.
One caution: the fraction rule makes small overshoots expensive. Income of $200,100 costs $50 of credit, the same as $201,000 would. If you are close, precision counts.
You get the full credit if modified adjusted gross income is $200,000 or less for single, head of household, or married filing separately filers, or $400,000 or less for married filing jointly. Above those levels the credit shrinks at $50 for every $1,000 of income, and eventually reaches zero.
For one qualifying child it reaches zero at about $244,000 of income ($444,000 joint), because the $2,200 credit shrinks $50 at a time across $44,000 of income. Each additional child adds roughly $44,000 of headroom. The thresholds are not indexed for inflation.
The phaseout is based on modified adjusted gross income, which for most families is the same as AGI on Line 11 of Form 1040. Contributions to a traditional 401(k), HSA, or similar pre-tax accounts lower AGI and can preserve more of the credit.
Head of household uses the $200,000 threshold, the same as single filers. Only married filing jointly uses the $400,000 threshold.
← Back to the Child Tax Credit calculator
Figures: 2026 (IRS Child Tax Credit rules). Source: Internal Revenue Service (irs.gov). This guide is for planning only and is not tax advice. Verify with Schedule 8812 instructions or a tax professional.