I paid $4,478 in taxes for federal, was given a $2000 child tax credit and my return is only $971. Thai doesn’t make sense

Forum|Forum|1 year ago
January 27, 2025
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Best answer by rjs

You're not supposed to get back all of the tax that you paid through withholding or estimated tax payments. You have to pay tax to the government to pay for government services.

From the figures you gave, it looks like the total tax you have to pay for 2024 is $5,507. The $2,000 child tax credit reduces that to $3,507. You paid $4,478 in advance, so you get a refund of $4,478 - $3,507, which is $971. The government keeps the $3,507.

xmasbaby0

Employee

The $2000 CTC is used first to pay towards your tax liability. Once your liability is at zero, the rest of the refundable portion can be added to your refund and will be shown on line 28 of your Form 1040.

Look at your 2024 Form 1040 to see the child-related credits you received

PREVIEW 1040

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/preview-turbotax-online-return-filing/L77WCkvnu_US_en_US?uid=m681fkhr

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

rjsAnswer

Employee

You're not supposed to get back all of the tax that you paid through withholding or estimated tax payments. You have to pay tax to the government to pay for government services.