The Child Tax Credit is worth $2,000 per qualifying child. The credit is first used to reduce your tax. If you have no tax liability, up to $1,700 ($1,600 in tax years 2022 and 2023) may be refunded to you as long as you have earned a minimum of $2,500 during the taxable year. The refundable amount is equal to 15% of your earned income over $2,500, up to $1,700 ($1,600 in tax years 2022 and 2023) and is referred to as the Additional Child Tax Credit.
To estimate how much of the refund you would receive, you can use the following equation:
(Your salary – 2,500) x .15
The credit eventually phases out for married taxpayers filing jointly with an income of $400,000 ($200,000 for all other taxpayers).
Tax year 2021 only
The Child Tax Credit was increased to $3,000 for children age 6 to 17 or $3,600 for children under age 6. The credit is fully refundable which means it will increase your refund or reduce your tax liability by this same amount.