The new 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 $1,400 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 $1,400 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).
