I am not getting the full child tax credit that I am supposed to...is anyone else experiencing issues with turbo tax?

[lwright1]

@DaveF1006 

1127540

[DaveF1006]

Good news!!  I have reviewed your file and you received the full $8000 child tax credit for your four dependents.  It is broken up on your 1040 with $2000 reported on line 16 of your 1040 as a child tax credit and $6000 reported on line 28 as an additional child tax credit. 

Your full amount is there like it should be.

@lwright1 

[lwright1]

@DaveF1006 so why did the IRS send a letter stating there is an error on the form having to do with Child Tax Credit/Credit for Other Defendants and refund a significantly smaller amount? I am just trying to figure out if the 1040 really is correct and it is a problem with the IRS or if there is an error on the1040. I talked to the IRS for over an hour yesterday and the representative only said they made an adjustment. It looks like they are saying the problem lies in Line 28 - Additional child tax credit from Schedule 8812. As you said my 1040 has $6000 reported there and they have changed it to $2710.20. 

[DawnC]

They either adjusted your income, other tax credits, or one of your dependents did not qualify.  Here are the requirements for the Child Tax Credit.   What line items besides #28 changed?   Or what other information does the letter have - it should tell you what they adjusted.   

[lwright1]

@DawnC  - They listed the tax calculations on my 1040 verses their calculations and the adjusted gross income and taxable income both match. Then they listed payments and credits. Income tax withheld (25d) matches as does Estimated tax payments (26). The only difference is lines 27-30. My 1040 has 6000 listed on line 28 and 0 on Line 27,29,30 as @DaveF1006 already noted but their calculation is $2710.20. That is where the discrepancy in the amount refunded comes in. I am trying to understand why they changed it.

All four of my children should qualify as they are 5, 8, 8, and 10 years old.

[ShirlynW]

The rules for getting the child tax credit on a 2021 tax return and now on a 2022 return are very different.  For 2021 you could get $3600 for a child under 6 or $3000 for a child between 6 and 17 even if you had no income/did not work.   That is NOT the way it will work for your 2022 tax return.  The “old” rules are back.   The maximum amount of the child tax credit is now $2000 per child; the refundable “additional child tax credit” amount is $1500.   In order to get that credit, you have to have income from working.  The credit is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1500 per child.  If your child is older than 16 at the end of 2022, you do not get the CTC.  But you may still get the non-refundable $500 credit for other dependents instead.

@lwright1

[lwright1]

@ShirlynW I did see that 2021 and 2022 are different and read your same explanation on another post. However, my question is if Turbo Tax is calculating it correctly. Turbo Tax entered my 4 children all under 16 as $2000 child tax credit and $6000 Additional child tax credit from Schedule 8812. 

The IRS has changed that to $2000 child tax credit and $2710 Additional child tax credit. 

[MayaD]

Per IRS: For 2022, the initial amount of the CTC is $2,000 for each qualifying child. The credit amount begins to phase out where modified adjusted gross income exceeds $200,000 ($400,000 in case of a joint return). 

The amount of the CTC that can be claimed as a refundable credit is limited as it was in 2020 except that the maximum ACTC amount for each qualifying child increased to $1,500.

 A child must be under age 17 at the end of 2022 to be a qualifying child.

2022 Instructions for Schedule 8812 (2022)

[lwright1]

@DawnC  I explained in an earlier post that my (Turbo Tax) calculations for Adjusted gross income and taxable income match as well as Income Tax Withheld. The only difference is the Other Credits from lines 27-30 which was changed from $6000 to $2710.20. The letter states "We found an error on your 2022 Form 1040, which affects the following area of your return: Child Tax Credit/Credit for Other Dependents."

All 4 kids are under 16 and have been listed as my dependents for multiple years. 

[MonikaK1]

If your children were all under 17, your income was lower than the phaseout range, you met the other requirements for the credit, and the IRS letter doesn't identify any other adjustments besides Additional Child Tax Credit (lines 27-30), contact the IRS as soon as possible and request an explanation for the adjustment. Follow the instructions provided in the letter.

[Cloud8]

Hi @lwright1 ,

Did you have adoption credit beside of Child Tax Credit and Additional Child Tax Credit? If so, that might be IRS difference came from. 

You can try the reference here. 

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/additional-child-tax-credit-and-...

[emrichjj]

Yes, Turbo Tax for some reason had my dependents defaulted information such that the box was checked saying:

"Not valid for employment" is printing on XXX Social Security Card.

I never checked this box; my daughter's info was imported from last year and this box automatically became checked somehow....not happy; seems like a scam..