How the credit shows up in your money
The credit reduces your tax at filing — which means a bigger refund or smaller bill. Some families instead adjust their W-4 so less is withheld during the year and the money shows up in each paycheck.
Refundable vs. non-refundable
If the credit exceeds your tax bill, up to $1,700 per child can still come back as a refund (the Additional Child Tax Credit). The rest is lost — credits cannot take your tax below zero beyond that cap.
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Read the guideFAQ
How much is the Child Tax Credit in 2026?
$2,000 per qualifying child under 17, with up to $1,700 refundable. It phases out above $200,000 (single) or $400,000 (married filing jointly).
Does the Child Tax Credit affect my paycheck?
Not automatically — it lands at filing unless you adjust your W-4 to withhold less during the year.
Is there a South Dakota child tax credit too?
Several states add their own child credits on top of the federal one. Check your state's revenue department — this calculator covers the federal credit only.
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