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Deductions & credits
In order to get the refundable part of the child tax credit you have to have at least $2500 of income earned from working, but to get the full refundable amount you need a lot more income from working. Here is how it works:
The child tax credit is a credit of UP to $2000, but not everyone gets the full amount. First the credit is applied to any tax you owe. Then the "refundable" amount of up to $1600 ($1750 for 2024) is calculated. Look at box 1 of your W-2. Subtract $2500 from that. Then take that number and multiply by 15%. That is your refundable amount --or "additional child tax credit" amount. If you did not earn at least $2500 you cannot get any additional child tax credit at all.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
‎July 31, 2024
4:28 PM