Child Tax Credit Help

[NolanMassie]

I have 3 children and according to Children and other Dependents Tax Credit It is around $6,000 (2,000 per kid). Trying to understand why my refund would be so low at $1,625 if I get $2000 per kid. Were low income and make less than $70,000 a year so surprised the refund amount isn't more.  I don't get  how it's $4,375 less. 

[xmasbaby0]

The way the CTC is calculated confuses many people.  You do not "get" $2000 per child as a refund.   

The total per child is $2000.   First the $2000 is used to reduce your tax owed down to zero.  When (if) your tax owed is zero, the "rest" of the $2000 can be added to your refund as the Additional Child Tax Credit----up to a maximum of $1600 per child.  But....that Additional Child Tax Credit also depends on how much you earned by working.  

Take the amount you earned, subtract $2500, and multiply what is left by 15%.  That is your additional child tax credit ---- up to a maximum of $1600 per child.

Look at your 2023 Form 1040 to see the child-related credits you received

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

[SharonD007]

You may not be receiving the full Child Tax Credit (CTC) credit because of your income.  The maximum amount of the (CTC) is $2,000, and the maximum refundable additional Child Tax Credit is $1,600. To be eligible for the CTC, you must have at least $2,500 of income from working.  The credit is calculated based on the amount you earned above $2,500. Your modified adjust gross income has to be under $400,000 for Married Filing Jointly or Qualified Widower and $200,000 for all other filing statuses.  If you have children that are older than 16 at the end of 2023, they don't qualify you to get the CTC, but you may still be eligible to get the   $500 non-refundable credit for Other Dependents instead.

In addition to the requirements listed above, you child must meet the following eligibility requirements to qualify for the Child Tax Credit.

• Be under 17 by 12/31/2023
• Be related to you (child, stepchild, foster or adopted child, sibling, or descendant of any of them)
• Have a Social Security Number
• Lived with you for more than half of the year
• Didn't provide for more than half of their expenses
• Be a U.S. citizen, U.S. national, or U.S. resident alien.

For more information, refer to the TurboTax Help articles: 2023 and 2024 Child Tax Credit: Top 7 Requirements, What is the Child Tax Credit?, and What is the Additional Child Tax Credit?

[NolanMassie]

Thank you! All Children are under 5.  How do I determine "calculated based on the amount you earned above $2,500". For Instance Im around $68,000 filing jointly so that would be about $65,500 above the 2,500. 

On the form it shows $6,000 for all 3.

[JamesG1]

See IRS Schedule 8812 Credits for Qualifying Children and Other Dependents for the calculations.

View the form at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.

@NolanMassie 

[xmasbaby0]

@NolanMassie The additional child tax credit---the part that can be added to your refund---is on line 28 of your Form 1040.

Look at your 2023 Form 1040 to see the child-related credits you received

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28