For the 2026 tax year, the Child Tax Credit (CTC) will see a significant increase, with the maximum credit rising to $2,200 per qualifying child, up from $2,000 in 2025. This change is part of the Our Better Budget Bill (OBBB), which aims to provide permanent updates to the CTC. The refundable portion of the credit will now be $1,700, though it is not fully refundable. Furthermore, both the total credit and its refundable portion will be adjusted annually for inflation, ensuring that the benefits keep pace with rising costs. The income thresholds for eligibility remain unchanged, with phase-outs starting at $200,000 for single filers and $400,000 for joint filers. To claim the CTC, taxpayers must meet specific criteria, including age, relationship, support, citizenship, residency, and income requirements. In addition to the CTC, families may also benefit from the Child and Dependent Care Tax Credit (CDCTC), which supports individuals who pay for care services for dependents while they work or seek employment.