If you have dependent minors, plan to adopt a child this year, or are typically eligible for the Earned Income Tax Credit, then you'll want to be aware of some changes that are on the horizon for common family tax benefits in 2026. The good news? Most people will benefit from these updates in the form of larger tax refunds or a lower overall tax burden. Still, anytime there's a change to tax laws that affect you, it's a good idea to be aware, so there are no surprises when it comes time to file your return.
Specifically, updates are being made to three commonly claimed family tax credits for the 2026 tax year: the Child Tax Credit, the Adoption Tax Credit, and the Earned Income Tax Credit. Here's what you need to know about each.
Child Tax Credit Updates
The Child Tax Credit is typically available to taxpayers who support dependent children under the age of 17. For the 2026 tax year, this credit is increasing from $2,000 to $2,200 per qualifying child. That's an additional $200 per child for those who qualify, which may quickly add up (especially for larger families).
On the other hand, it is worth noting that the increase has mostly been made to keep up with inflation and other rising costs of living; it is a far smaller increase in comparison to what was seen during the COVID-19 pandemic. It is also important for taxpayers to understand that part of the credit is nonrefundable, meaning that not all families will receive the full amount as a refund on their taxes.
Adoption Tax Credit Updates
In addition to an increase in the Child Tax Credit, the government is also increasing the maximum available Adoption Tax Credit for qualifying taxpayers who adopted a child (or children) during the 2026 tax year. The purpose of this credit is to help offset some of the expenses that can come along with adopting a child—which can easily range from $2,500 to $45,000.
More specifically, this credit will increase several hundred dollars from last year to a maximum amount of up to $17,670. This credit can be used to offset qualified adoption expenses that may include:
- Court costs and attorney fees
- Adoption-related travel expenses
- Adoption fees
Those planning to claim this credit for the 2026 tax year, however, should be aware that higher-income families may not be eligible for the total amount, as the credit is phased out based on income. Still, receiving some money back to offset the costs of adoption is a welcome opportunity for many families and may even make adoption a more viable option for some.
What About the Earned Income Tax Credit (EITC)?
Finally, the Earned Income Tax Credit also appears to be seeing a modest increase for the 2026 tax year. This tax credit is offered to low- and moderate-income workers—with credits being higher for those with children. For 2026, this credit is now worth up to $8,231 (an increase of nearly $200 from the 2025 amount) for those with three qualifying children.
On the other hand, 2026 is also seeing a less welcome change to the EITC. Beginning this year, taxpayers with investment income that exceeds $12,200 will no longer qualify—so this is something worth keeping in mind as you determine your own eligibility.
What These Changes Could Mean for You
In general, the changes to these family tax credits should be beneficial to most—with the exception of taxpayers with substantial investment income who may no longer be able to claim the Earned Income Tax Credit. With larger tax breaks, hardworking families may be able to keep more of their money when it comes time to file their tax returns.
While the increases to these tax credits aren't substantial, they may offer families a little more financial breathing room, so it's important to consider how these changes could affect you in the coming year. Ideally, you might end up with a larger tax refund, owe less on your taxes or both.
If you could use some help in determining how these changes will affect your 2026 tax return, please contact our Tax Services team.