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WalletPrep worksheet · Taxes

How much is the child tax credit?

Name ____________________ Date __________

Key ideas

  1. The child must be under 17. Age is checked on December 31. A child who turns 17 that year gets only the $500 credit for other dependents.
  2. Part of it is refundable. Up to $1,700 per child, worth 15% of earned income above $2,500, can be paid to you even with zero tax.
  3. It shrinks above $200,000 of income. Or $400,000 for married couples filing jointly. You lose $50 for each $1,000 of income over the line.

Vocabulary

Child tax credit
A federal credit of up to $2,200 per child under 17 for 2026, partly refundable.
Qualifying child
A child who passes the IRS tests for relationship, age, residency and support, so you can claim tax benefits for them.
Inflation
The rise in prices over time, which means each dollar buys a little less each year.
Adjusted gross income
Your total income for the year minus a short list of adjustments, like deductible IRA contributions and student loan interest. Many tax rules and programs use it.
Form W-4
The form you give your employer to set how much federal income tax is withheld from each paycheck.

Work it out

Luis and Ana are married, file jointly and have two kids, ages 3 and 9. They earn $70,000 in wages together and take the standard deduction.

  1. Wages
  2. Standard deduction
  3. Taxable income
  4. Child tax credit, 2 kids
  5. Used to cancel their tax
  6. Refunded as ACTC

Check yourself

  1. Your child turns 17 on December 20. Which credit can you claim for them this year?

    • A. The full child tax credit
    • B. Half the child tax credit
    • C. The credit for other dependents, up to $500
    • D. No credit at all

  2. You have one child, owe $0 in income tax and earned $8,500. How much refundable child tax credit can you get?

    • A. $900
    • B. $1,700
    • C. $2,200
    • D. $0

  3. Which form do you attach to claim the child tax credit?

    • A. Schedule A
    • B. Schedule EIC
    • C. Form W-4
    • D. Schedule 8812

Your turn

Check that each child under 17 has a Social Security number valid for work, and that yours is too. Then look at Step 3 of your W-4. If it doesn't list your children, give payroll a new W-4.

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Answer key

How much is the child tax credit?

Work it out

  1. Wages$70,000
  2. Standard deduction− $32,200
  3. Taxable income= $37,800
  4. Child tax credit, 2 kids$4,400
  5. Used to cancel their tax− $4,040
  6. Refunded as ACTC= $360
  1. Their tax is 10% of the first $24,800 ($2,480) plus 12% of the next $13,000 ($1,560), so $4,040.
  2. Two children give $2,200 × 2 = $4,400 of credit. The first $4,040 cancels their whole tax bill.
  3. The $360 left is under the $1,700 per child cap and under 15% × ($70,000 − $2,500) = $10,125, so all $360 comes back as a refund.

Check yourself

  1. C. The credit for other dependents, up to $500 The child must be under 17 on December 31. A 17-year-old dependent can still bring the credit for other dependents.
  2. A. $900 15% × ($8,500 − $2,500) = $900, which is less than the $1,700 cap, so the refundable credit is $900.
  3. D. Schedule 8812 Schedule 8812 figures the child tax credit, the additional child tax credit and the credit for other dependents.