The two credits side by side
| Federal child tax credit | Massachusetts child and family tax credit | |
|---|---|---|
| Amount | Up to $2,200 per qualifying child (also $2,200 for 2026) | $440 per eligible individual |
| Who counts | Qualifying child under 17 at year-end | Dependent child under 13; dependent 65 or older; disabled dependent or spouse |
| Refundable part | Up to $1,700 per child (additional child tax credit), with at least $2,500 of earned income | See the Form 1 instructions |
| Other dependents | $500 credit for other dependents | Included if 65 or older or disabled |
| Income limit | Full credit up to $200,000 of income ($400,000 joint), reduced above | No income limit on DOR's credit page |
| Number of dependents | Per qualifying child | No cap on the number |
| Married filing separately | See the IRS eligibility rules | Not eligible |
| Social Security numbers | Required for each child and for you or your spouse on a joint return | See the Form 1 instructions |
| Where claimed | Form 1040 and Schedule 8812 | Form 1, line 46 (Form 1-NR/PY, line 50) |
The federal credit after the 2025 law
The 2025 federal law raised the child tax credit to $2,200 per qualifying child and made it permanent, with the amount indexed for inflation; it remains $2,200 for 2026. The refundable portion, the additional child tax credit, is up to $1,700 per child for both years, and requires at least $2,500 of earned income.
To be a qualifying child, the child must be under 17 at the end of the year, be your relative, have lived with you for more than half the year, not have provided more than half of their own support, be claimed as your dependent, and be a U.S. citizen, national or resident alien. You, or your spouse on a joint return, and each child must have a Social Security number valid for employment, issued before the return's due date including extensions.
The Massachusetts credit is broader in one way and narrower in another
Massachusetts pays $440 for each eligible individual for tax year 2024 and later, up from $310 for 2023. The age line is lower than the federal one, 13 rather than 17, but the credit also reaches people the federal child credit does not: a dependent parent or other relative aged 65 or older, and a disabled dependent or a disabled spouse. There is no cap on how many eligible people you can count.
Married couples filing separately cannot claim it. Part-year residents and nonresidents claim it on Form 1-NR/PY, where the amount is prorated by the Massachusetts income ratio.
Illustrative example for 2025. A married couple in Taunton file jointly with $95,000 of income. Their children are 10 and 15, and the wife's mother, 78, lives with them as a dependent. Federally, both children are under 17, so the child tax credit is $4,400, and the mother may qualify for the $500 credit for other dependents. In Massachusetts, the 10-year-old and the 78-year-old are eligible but the 15-year-old is not, so the credit is 2 × $440 = $880.
Related family breaks worth checking
- Massachusetts dependent exemption of $1,000 for each dependent
- Massachusetts 529 plan contribution deduction, up to $1,000 per person or $2,000 joint
- Federal child and dependent care credit: for 2026, the maximum credit rate rises from 35% to 50% of qualifying expenses, with the expense limits still $3,000 for one child and $6,000 for two or more
- Trump accounts: a $1,000 federal pilot contribution for U.S.-citizen children with a Social Security number born from 2025 through 2028, elected on Form 4547
Common mistakes
The most frequent errors are age-related: claiming the Massachusetts credit for a 14-year-old because the federal credit applies, or missing the Massachusetts credit for an elderly parent because no federal child credit applies. Stale information is another: some guides still print $2,000 federally or $310 for Massachusetts, both of which are out of date.
Where we come in
We prepare the federal and Massachusetts returns together, so each dependent is tested against both sets of rules. Before we start, we give you a scope and a price in writing.
Figures on this page were checked against the IRS and Massachusetts sources listed alongside on 28 Sep 2026. They change — confirm the current amount before relying on one.
General information for owner-led businesses, not advice for your specific situation. Tax and accounting rules change, and how they apply depends on facts particular to your business. Talk to us — or to another qualified professional — before acting on anything here.
