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.

 

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