New Delhi, April 25 -- If you have dependents under 17, you likely qualify for the Child Tax Credit (CTC). While the 2021 expansion under the American Rescue Plan was temporary, the OBBB (Our Better Budget Bill) has introduced permanent updates for the 2026 tax year and beyond.

A tax credit provides a dollar-for-dollar reduction of your tax liability. This differs from a deduction, which only lowers the amount of your income subject to tax. For example, if you owe $3,000 but have a $1,000 credit, your final bill drops to $2,000.

For the 2026 tax year, the maximum credit is $2,200 per child (up from $2,000 in 2025). The OBBB has implemented several key shifts:

Note on Income Limits: The Modified Adjusted Gross Income (MAGI) thresholds r...