The child tax credit on your W-4: Step 3 in 2026
Step 3 of the 2026 Form W-4 is where the child tax credit goes: $2,200 for each qualifying child under 17. On a $60,000 salary paid every two weeks, entering it for one child adds $84.62 to every check and shrinks next spring’s refund by about the same amount.
The check with Step 3 left blank
$60,000 a year, paid every two weeks, single, in Texas, so there is no state income tax line. Each check is $2,307.69 before tax. Federal income tax is $193.08, Social Security $143.08 and Medicare $33.46. The deposit is $1,938.07. Over the year this W-4 withholds $5,020.08 of federal income tax and gives no credit for a child at all.
Enter one child
The 2026 form says, for total income of $200,000 or less ($400,000 married filing jointly), multiply the number of qualifying children under 17 by $2,200. One child: enter $2,200. Federal income tax on each check falls from $193.08 to $108.46. Social Security and Medicare do not move, because the credit only reduces income tax. The deposit rises to $2,022.69, $84.62 more.
That figure is not a coincidence. Publication 15-T divides the Step 3 amount by the number of pay periods and subtracts it from each check’s income tax. $2,200 over 26 checks is $84.62. For the year, withholding falls from $5,020.08 to $2,819.96. The credit is still figured on the return; Step 3 lets the paycheck count it now instead of in April.
Two children, or an older dependent
Two children under 17 means entering $4,400. Federal tax falls to $23.85 a check and the deposit rises by $169.23. Other dependents, such as a child who is 17 or older or a relative you support, may qualify for the credit for other dependents. Step 3(b) uses $500 for each one, worth $19.23 a check here.
A family with a 10-year-old and a 17-year-old enters $2,200 plus $500, which is $2,700. That adds $103.85 to each check. The table below lists each entry. Your own numbers are in the paycheck calculator, which has a Step 3 field under the W-4 settings.
The refund shrinks by the same amount
This is not new money. It is the same credit, paid out across the year instead of in one refund. The form says it plainly: including these credits will increase your paycheck and reduce the amount of any refund you may receive when you file.
Some people prefer the refund as forced savings. Others would rather have the money in each check. Either is a choice. If you also have income no one withholds on, a bigger check can turn into a bill, so run the withholding checkup first.
Both parents work? Enter the child once
Form W-4 says to complete Steps 3 through 4(b) on only one W-4, and that withholding is most accurate on the W-4 for the highest-paying job. If two working spouses each enter $2,200 for the same child, each job’s withholding falls by $2,200.12 for the year: $4,400.24 of credit on the W-4s for a child worth $2,200 on the return. The household comes up about $2,200 short. Two earners usually also need Step 2; see W-4 with two jobs.
Who counts
For the child tax credit, the W-4 instructions say the child must be under 17 as of December 31, must be your dependent who generally lives with you for more than half the year, and must have the required Social Security number. You (and your spouse, if filing jointly) must also have the required Social Security number to claim certain credits. A child who does not qualify can still count as an other dependent at $500.
Revenue Procedure 2025-32 sets the 2026 maximum credit at $2,200 per child, with up to $1,700 of it refundable. Above $200,000 of total income ($400,000 joint) the Step 3 multipliers no longer apply as printed; use the IRS Tax Withholding Estimator instead. A single parent should also look at Step 1: head of household changes withholding too, as how to fill out a W-4 shows. This is not tax advice.
| Step 3 entry | Federal tax per check | Take-home per check | Federal tax for the year |
|---|---|---|---|
| Blank | $193.08 | $1,938.07 | $5,020.08 |
| $2,200: one child under 17 | $108.46 | $2,022.69 | $2,819.96 |
| $4,400: two children under 17 | $23.85 | $2,107.30 | $620.10 |
| $2,700: one child under 17 and one other dependent | $89.23 | $2,041.92 | $2,319.98 |
| $500: one other dependent | $173.85 | $1,957.30 | $4,520.10 |
Watch it worked through
- Child Tax Credit 2026 on Your W-4: +$85 a Paycheck (YouTube Short)
Paycheck Zip videos use the same calculator as this page. Figures in a video are from the day it was made; the page is kept current.
Sources
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Questions
How much is the child tax credit on the 2026 W-4?
$2,200 per qualifying child under 17, entered in Step 3(a). Other dependents are $500 each in Step 3(b).
How much does one child add to a paycheck?
On $60,000 paid every two weeks, $84.62 a check: $2,200 spread over 26 paychecks.
Should both parents claim the child on their W-4?
No. Complete Step 3 on only one W-4 in the household, ideally the highest-paying job.
Does Step 3 change Social Security or Medicare?
No. It only lowers federal income tax withholding.
Will my refund be smaller?
Usually by about the same amount. The form says including the credits will increase your paycheck and reduce any refund.