Amanda has two dependent children, ages 10 and 12. She earned $30,000 from her job, and her income tax before credits is $1,200. How much of her child credit is refundable?

Question

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The refundable portion of the Child Tax Credit is known as the Additional Child Tax Credit (ACTC). For 2023, up to $1,400 per qualifying child can be refundable. Amanda has two children, so the maximum refundable amount is $2,800. However, since her tax before credits is $1,200, only $1,200 can be used to offset her tax liability, and the remaining $1,400 is refundable.

Amanda Has Two Dependent Children, Ages 10 and 12