2020 tax return line 16 it the tax liability that can negated by the EV credit however the non refundable portion of the CTC must be used first ... the CTC is $2000 per child but $1400 is refundable. What you had withheld is immaterial for this credit calculation.
For instance ... if you had 1 child for the CTC ...
line 16 ... tax liability $12K - CTC of $600 = $11400 - EV credit $7500 = $3900 tax remaining
withholdings of $8000 + $1400 ACTC = $9400 in payments - $3900 remaining tax bill = $5500 refund
NOW for 2021 things are a bit different ... the CTC went up and the entire amount is refundable ... this is ONLY for 2021 unless congress changes their minds again.
Line 16 ... $12000 - EV credit $7500 = $4500 tax remaining
withholdings of $8000 + $3000 ACTC = $11000 in payments - $4500 remaining tax bill = $6500 refund
