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Get your taxes done using TurboTax

If you are filing a joint return your standard deduction for 2020 is $24,800   ----- which means you only pay tax on the amount of income above that amount.   So you have very little taxable income.   And with two children under the age of 17 you are getting child-related credits---earned income credit and the child tax credit.   Did you also use the recovery rebate credit in Federal Review and make sure that you go the right amount for the stimulus checks for you, your spouse and the two children?

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BillM223
Employee Tax Expert

Get your taxes done using TurboTax

I think the answer is "refundable credits". Refundable credits are credits that pay you over and above whatever tax you owe.

 

For example, you can get upwards of $4,000 in Child Tax Credit and Additional Child Tax Credit ($2,800 max for the ACTC). These are on lines 19 and 28 respectively on your 1040.

 

Also, the Earned Income Tax Credit (EITC) can also give you a sizable refund, because are married and have 2 kids, but perhaps made only a modest amount of money - note, your 202 unemployment does not count as earned income which is required for this credit, but your 2019 income very likely was earned, yet not so much that eliminated your EITC credit. This is on line 27 on your 1040.

 

Also, you did not mention if you and your wife received any stimulus payments. Requesting these now will just add to your refund. Stimulus payments, called Recovery Rebate credit, can be found on line 30 on your 1040. 

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Get your taxes done using TurboTax

Thank you, that's an affirmative to your questions. 

My quandary and concerns have been alleviated.

Much appreciated!