You need to understand the source(s) of your anticipated refund. Taxes are complicated. In the old days a refund literally meant a refund of tax withheld from your pay.
Today, for many people, "refund" means a government handout thru "refundable" credits. An even $4000 suggests that you are claiming two kids and expecting a $2000 child tax credit for each.
The money you hear about people getting for just filing a
tax return claiming kids requires them to
have some earned income (wages or self employment). Without earned income,
they are not eligible for the "refundable" Earned Income Credit or Additional
Child Tax Credit. Both credits are calculated on the amount of earned income you have. No
earned income means no "refund". A small amount of earned income
means a small refund. The child tax credit does not "kick in" unless
you have at least $2500 of earned income.
The actual child tax credit (CTC) is limited to your tax liability. The CTC is a non-refundable credit and can
only reduce your income tax to 0, It can not help you beyond eliminating your
tax liability. But, if you have more than $2500 of earned income, some or all of
it is usually given back to you thru the "Additional Child tax credit".
That is, part of the CTC may be on line 17 of form 1040 instead of line
12. The
ACTC is calculated on form 8812 and
is basically 15% of your earned income over $2500. The ACTC is a maximum
of $1400 per child (not $2000).
