Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Feb 12, 2025 2:26:21 PM

Why am I getting the full Child Tax credit of $2,000 as a refund?

I thought that this only reduced my taxes due?

0 9 954
1 Best answer
Expert Alumni
Feb 13, 2025 9:04:18 AM

You can qualify for the full CTC credit even if you are receiving a refund.

 Your tax liability is the amount on line 18.  It is the total amount of taxes you are responsible for without consideration of what you have already paid in.  The child tax credit can reduce your tax liability to $0. And if your withholdings and payments exceeded your tax liability, the difference is your tax refund.

9 Replies
Expert Alumni
Feb 12, 2025 2:42:30 PM

The Child Tax Credit can just reduce your tax, but the Additional Child Tax Credit is refundable up to 85%. You must have something else included in your refund.

 

You can check your tax summary to see what it is coming from:

 

  1. Log in to your tax return at TurboTax.com.
  2. Click on Tax Tools on the left side of the screen (you may need to click on Continue in the center first).
  3. Click on Tools.
  4. In the box that pops up in the center, click on View Tax Summary

Level 2
Feb 12, 2025 2:55:38 PM

It says total credits: $2,000.  I don't have any other credits.  I'm concerned that is an error in TurboTax that I can't fix. 

Expert Alumni
Feb 12, 2025 3:07:19 PM

Does it say you getting a refund of the child tax credit or does it say you are just getting the full $2,000 child tax credit?  If you had taxes withheld of $2,000 or more, the child tax credit would lower your tax liability by $2,000 and give you a refund of the money you paid in. 

 

Look at lines 19, 25 and 28 of your 1040 form.  If line 19 says $2,000 and line 25 says more than $2,000, then this is just a refund of the money you paid in because the child tax credit reduced what you owed and made it so you paid in more than you had to so you are getting that overpayment back. 

Level 2
Feb 12, 2025 3:42:28 PM

I’m getting a refund of $2500…that’s what I’m saying, it doesn’t make sense. I should only be getting $1700 towards my refund. This is the additional tax credit not the standard one. 

Expert Alumni
Feb 12, 2025 4:01:52 PM

The Additional Child Tax Credit is computed on page 2 of Schedule 8812, line 27.  Review the form to see how the credit is calculated.

 

You are able to print or view the full tax return prior to filing after you have paid for the software.

 

@jake64 

Level 2
Feb 12, 2025 4:53:24 PM

Ok thanks. I’ll check that out tomorrow and let you know either way. 

Level 2
Feb 13, 2025 7:35:25 AM

So on Schedule 8812, line 27 it was blank.  Line 14 was $2000 so this looks like the standard child tax credit.  This lowered my taxes due from $7500 to $5500 resulting in a tax refund of $2500.  I was under the impression that if I am getting a refund that I can't use that full $2000 but maybe I am just mistaken at how I am interpreting how to apply the child tax credit?  Can you try to explain?  Thanks

Expert Alumni
Feb 13, 2025 9:04:18 AM

You can qualify for the full CTC credit even if you are receiving a refund.

 Your tax liability is the amount on line 18.  It is the total amount of taxes you are responsible for without consideration of what you have already paid in.  The child tax credit can reduce your tax liability to $0. And if your withholdings and payments exceeded your tax liability, the difference is your tax refund.

Level 2
Feb 13, 2025 9:09:53 AM

Wow, thank you!  I finally understand how this credit works.  The way the rule reads (to me at least) is that I can't use it towards my refund...in other words since I am getting a $2500 refund I thought that meant I should only get $500 since $2000 of that is being increased by the CTC.  Apparently I am wrong and that is a good thing in my case!