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New Member
posted Jul 22, 2024 10:31:41 PM

IRS refund was $3200 lower than turbo tax calculated.

IRS refund was $3200 lower than turbo tax calculated. There explanation is that Child tax credit was applied in wrong order of priority compared to other credits. Makes no sense to me because I just enter my data and let the software figure it out. l need to understand if there is a turbo tax issue or something else. 

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2 Replies
Level 15
Jul 22, 2024 10:48:32 PM

we can't see your return so don't know what credits other than the CTC was on it. 

Nonrefundable Credits: These are applied first. Nonrefundable credits can reduce your tax liability to zero but cannot result in a refund. Examples include the Child Tax Credit (CTC) and the Lifetime Learning Credit.
Refundable Credits: After nonrefundable credits are applied, refundable credits come next. These credits can reduce your tax liability below zero, resulting in a refund. Examples include the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC - partially refundable).
General Business Credits: These are typically applied after nonrefundable personal credits but before refundable credits. They include various credits for businesses, such as the Research and Development Credit.
The specific order can vary depending on the credits you qualify for and your individual tax situation.

Level 15
Jul 23, 2024 6:43:42 AM

We cannot see your return.   We do not know what other credits you have on your Form 1040 or how much income you had.

Look at your 2023 Form 1040 to see the child-related credits you received

 

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

 

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28