How much is the refund or liability after applying the Child Tax Credit for a married couple with two qualified children?

To determine the refund or liability after applying the Child Tax Credit for a married couple with two qualified children, it's essential to understand the specifics of the Child Tax Credit. For the 2023 tax year, the credit is generally $2,000 per qualifying child, which means a couple with two qualified children could potentially qualify for a credit totaling $4,000.

The outcome indicated as a $3,000 refund could imply that the couple had adequate withholding or tax payments that, along with the credit, result in a significant refund when total taxes owed are lower than the credit. For example, if their tax liability is around $1,000, the total Child Tax Credit of $4,000 would exceed their liability, allowing for a refund of the remaining amount (i.e., $4,000 - $1,000 = $3,000).

Thus, the correct explanation aligns with the ability of the Child Tax Credit to not only offset tax liability but also provide a potential refund based on withholding or credits. This understanding reinforces why the outcome is a $3,000 refund, as the excess Child Tax Credit can result in funds returned to them.