Key Points
- The 2027 child tax credit is $2,300 per qualifying child, up $100 from 2026, and up to $1,800 of it is refundable.
- A family that owes no federal income tax needs $14,500 in earned income to get the full refundable amount for one child, or $26,500 for two.
- The age limit, Social Security number rules and $200,000/$400,000 phaseout thresholds stay the same.
The 2027 child tax credit rises to $2,300 per qualifying child, up $100 from 2026. The IRS announced the increase in its annual inflation adjustments for tax year 2027. The refundable portion also climbs $100, to $1,800 per child.
Both numbers rise along with the new 2027 tax brackets and standard deduction.
The new amounts apply to income earned in 2027 and show up on returns filed in early 2028. The return you file in spring 2027 still uses the 2026 figures of $2,200 per child and $1,700 refundable. Parents who want the larger credit reflected in their 2027 paychecks can update their Form W-4 withholding in January.
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Why It Matters
The 2027 increase is the first time the child tax credit has grown from inflation indexing alone. The One Big Beautiful Bill Act raised the credit to $2,200 per child and tied it to inflation. The IRS now refers to that law as the “Working Families Tax Cuts”.
For a family with two children under 17, the maximum credit grows to $4,600 from $4,400. Three children push the maximum to $6,900 from $6,600. We also ran four households through both years of rules.
A married couple earning $120,000 with two children would owe $336 less in 2027 with the bigger credit and standard deduction.
What Changes And What Stays The Same In 2027?
Only the credit amount and the refundable cap change for 2027. Every eligibility rule behind the 2025 child tax credit carries over, based on the IRS child tax credit rules and a Congressional Research Service report on how the credit works.
The table below compares both years.
| Item | 2026 | 2027 |
|---|---|---|
| Maximum Credit Per Child | $2,200 | $2,300+$100 |
| Refundable Portion Per Child | $1,700 | $1,800+$100 |
| Earnings For Full Refund, One Child | $13,834 | $14,500 |
| Earnings For Full Refund, Two Children | $25,167 | $26,500 |
| Earnings For Full Refund, Three Children | $36,500 | $38,500 |
| Phaseout Starts, Single Or Head Of Household | $200,000 | $200,000 |
| Phaseout Starts, Married Filing Jointly | $400,000 | $400,000 |
| Credit Gone, Single Filer With One Child | $244,000 | $246,000 |
| Credit Gone, Joint Filers With Two Children | $488,000 | $492,000 |
| Credit For Other Dependents | $500 | $500 |
- Age: The child must be under 17 at the end of the tax year.
- Identification: Each qualifying child needs a Social Security number valid for employment and issued before the return’s due date. The taxpayer needs one too, and on a joint return one spouse’s number is enough.
- Income phaseout: Above $200,000 of income, or $400,000 for married couples filing jointly, the credit shrinks by $50 for every $1,000.
- Refund formula: The refundable portion equals 15% of earned income above $2,500, up to the per-child cap.
- Other dependents: A dependent who doesn’t qualify, such as a 17-year-old high school senior or a college student, can still bring a $500 credit for other dependents.
The age cutoff hits families of high school juniors and seniors first. A child who turns 17 during 2027 drops from the $2,300 credit to the $500 credit for other dependents, a $1,800 difference on the 2028 return.
That loss often lands right as college costs start, so it belongs in the numbers you run through our 529 plan and college savings calculator.
How Much Income Do You Need For The Full $1,800 Refund?
For a family that owes nothing under the 2027 tax brackets, the full refundable amount takes $14,500 in earned income with one child. Two children require $26,500, and three require $38,500. Those figures come from our math on the 15% earnings formula, and each one sits above its 2026 equivalent.
Families with three or more children can also qualify through an alternative formula based on Social Security taxes paid.
The $100 increase doesn’t reach every family. A single parent of two earning $20,000 owes no federal income tax after the $24,925 head of household standard deduction. The formula caps that parent’s refund at $2,625 in both 2026 and 2027, so the higher cap adds nothing.
Refunds that include this credit also wait for the PATH Act hold, which our IRS tax refund calendar tracks each season.
Where Does The 2027 Credit Phase Out?
The 2027 credit starts shrinking above $200,000 of modified adjusted gross income, or $400,000 for joint filers. Unlike the federal tax brackets, those thresholds don’t adjust for inflation.
A bigger credit takes longer to phase out, so a single parent with one child now loses it at $246,000 instead of $244,000. For a married couple with two children, the cutoff moves to $492,000 from $488,000.
How This Connects
The credit increase is one of several family tax changes from the same 2025 law. Children born from 2025 through 2028 can get a $1,000 federal deposit in a Trump Account, and parents paying for daycare can pair the child tax credit with a dependent care FSA. Each benefit runs on its own rules, so a family with a newborn and a preschooler could use all three in 2027.
What’s Next
The new amounts will appear on Schedule 8812, the form used to claim the credit, when the IRS releases the 2027 version for the 2028 filing season. Parents should also check that their tax software supports the credit before choosing a free tier. Our TaxSlayer review found its Simply Free tier doesn’t include the child tax credit. The 2028 credit amount will arrive with next fall’s IRS inflation adjustments.
Editor: Colin Graves
The post 2027 Child Tax Credit Changes: $2,300 Per Child And $1,800 Refundable appeared first on The College Investor.
