Child Tax Credit

[Paul Bea]

I have 2 children under 14 years old. My tax credit should be $4,000. It's only showing $550. What am I doing wrong?

[DianeW777]

It depends. If your tax liability is lower than the full $4,000, then you may be receiving a partial amount as a payment. The $2,000 per child for the child tax credit (CTC) can be refundable or reduce your tax depending on your situation.  In 2024, the tax credit will be refundable only up to $1,700, depending on your income. You must have earned income of at least $2,500 to be eligible for the refund. You will see an entry on Form 1040, line 19, and/or line 28, if you have a refundable portion.

• What is the Child Tax Credit?