Hi, our married filing jointly income is around $135k for 2023. It was similar to this amount in 2022. We received the full $4k child tax credit for 2 young kids in 2022, but only got $1k for 2023, which was the additional credit. Why didn’t we get the $4k credit again? The only difference I can see is that we owe taxes this year because we didn’t withhold enough, but how does that affect the ctc? or actc?
You may not be receiving the full Child Tax Credit (CTC) credit because of your income. The maximum amount of the (CTC) is $2,000, and the maximum refundable additional Child Tax Credit is $1,600. To be eligible for the CTC, you must have at least $2,500 of income from working. The credit is calculated based on the amount you earned above $2,500. Your modified adjust gross income has to be under $400,000 for Married Filing Jointly or Qualified Widower and $200,000 for all other filing statuses. If you have children that are older than 16 at the end of 2023, they don't qualify you to get the CTC, but you may still be eligible to get the $500 non-refundable credit for Other Dependents instead.
In addition to the requirements listed above, you child must meet the following eligibility requirements to qualify for the Child Tax Credit.
For more information, refer to the TurboTax Help articles: 2023 and 2024 Child Tax Credit: Top 7 Requirements, What is the Child Tax Credit?, and What is the Additional Child Tax Credit?
The total per child is $2000. First the $2000 is used to reduce your tax owed down to zero. When (if) your tax owed is zero, the "rest" of the $2000 can be added to your refund as the Additional Child Tax Credit----up to a maximum of $1600 per child. But....that Additional Child Tax Credit also depends on how much you earned by working.
Take the amount you earned, subtract $2500, and multiply what is left by 15%. That is your additional child tax credit ---- up to a maximum of $1600 per child.
Look at your 2023 Form 1040 to see the child-related credits you received
PREVIEW 1040
https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing
Child Tax Credit line 19
Credit for Other Dependents line 19
Earned Income Credit line 27
Additional Child Tax Credit line 28