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The $2,000 that you are seeing for each child is a tax credit and not a refund amount.
A tax credit is a dollar-for-dollar reduction of the income tax you owe. For example, if you owe $1,000 in federal taxes but are eligible for a $1,000 tax credit, your net liability drops to zero. Some credits, such as the earned income credit, are refundable, which means that you still receive the full amount of the credit even if the credit exceeds your entire tax bill. Therefore, if you owe $400 in tax and claim a $1,000 earned income credit, you will receive a $600 refund.
The $2,000 that you are seeing for each child is a tax credit and not a refund amount.
A tax credit is a dollar-for-dollar reduction of the income tax you owe. For example, if you owe $1,000 in federal taxes but are eligible for a $1,000 tax credit, your net liability drops to zero. Some credits, such as the earned income credit, are refundable, which means that you still receive the full amount of the credit even if the credit exceeds your entire tax bill. Therefore, if you owe $400 in tax and claim a $1,000 earned income credit, you will receive a $600 refund.
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