Low income $5000 - Why is Additional Child Tax Credit only $412? Usually get more
I'm really confused about my tax return this year. I only earned about $5000 in 2024, and my tax return is showing I'm only getting $412 for the Additional Child Tax Credit and nothing for the regular Child Tax Credit. This has never happened before - usually get way more. Is this because of my low income?
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Paloma Clark
The Child Tax Credit is partially refundable based on your earned income. For 2024, you need to earn at least $2,500 to qualify, and the refundable portion is calculated as 15% of your earned income above $2,500. With $5000 income, your max refundable amount would be around $375-425. The regular Child Tax Credit requires tax liability to offset, which you likely don't have due to low income.
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Evelyn Kelly
omg thank you for explaining! that makes sense but it totally sucks 😭
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Heather Tyson
wait so if someone makes more they get more credit? thats backwards af 🤔
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Paloma Clark
Yeah its weird but thats how they designed it. Higher earners can claim more because they have more tax liability to offset.
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Raul Neal
Hey everyone! I actually had this exact same issue last year and was super confused. I found this tool called taxr.ai that analyzes your transcript and explains everything. It costs $1 but it breaks down exactly why you're getting what you're getting and if there's anything you can do about it. Here's the link: https://taxr.ai
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Jenna Sloan
Does it actually work? Seems to good to be true tbh
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Raul Neal
It literally saved my sanity! It showed me exactly why my credits were calculated that way and even suggested some things I could do differently next year
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Jenna Sloan
just tried it and WOW! wish i knew about this sooner fr fr 💯
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Christian Burns
in the same boat bestie 🚣♀️ made like 6k last year and got wayyyy less than usual
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Sasha Reese
did u claim any other credits? like earned income credit?
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Evelyn Kelly
ya i got some EIC but its still way lower than last year
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Muhammad Hobbs
the whole system is rigged against low income ppl fr fr 🤡
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Noland Curtis
facts. they stay making it complicated on purpose
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Diez Ellis
have you considered talking to a tax professional? they might be able to find other credits or deductions you qualify for
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Evelyn Kelly
cant afford that rn tbh 😅
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