If youāve been seeing posts saying āeveryone gets $2,200 per childā ā pause. Thatās not the full story.
Hereās the real breakdown ā¬ļø
ā
The Child Tax Credit is worth up to $2,200 per qualifying child
Those two words matter: up to
Hereās how it actually works:
⢠The credit first goes toward any federal taxes owed
⢠If thereās little or no tax owed, you may still get part of it back
⢠The refundable portion is called the Additional Child Tax Credit (ACTC)
š” ACTC basics:
⢠Max refundable amount: $1,700 per child
⢠You must have at least $2,500 in earned income
⢠Earned income = W-2 or self-employed work
⢠The refund phases in gradually based on income
Thatās why:
ā Not everyone gets the same refund
ā Viral posts can be misleading
ā
Income + work history matter
This is exactly why we donāt rely on internet headlines ā we rely on facts and the IRS code.
š Pro tip: If youāre a tax pro, make sure youāre explaining this clearly to clients before expectations are set.
Clarity builds trust. Confusion creates problems.