The advance child tax credit shouldn't count as income, correct? When I put in an amount, my federal return drops way down.

[xmasbaby0]

Federal>Deductions and Credits>You and Your Family>Child Tax Credit

The IRS is sending out letter 6419 to you.  It will show the amount of advance child tax credit that you received during 2021.  Enter the information from that letter carefully.   The remaining amount of CTC that you can receive will show up on line 28 of your 2021 Form 1040.

PREVIEW 1040

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

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

NOTE:   The CTC is indeed a “credit” that can be applied toward any tax liability that you would otherwise have to pay as “tax due”  to the IRS.

[JulieS]

No, the Child Tax Credit does not count as income.

The amount you received as an Advance Child Tax Credit during 2021 reduces the amount of Child Tax Credit you receive with your tax refund. 

In other words, if you are entitled to $3600 in Child Tax Credit and you received $1800 during 2021, you receive the remaining $1800 when you file your return. 

[VolvoGirl]

Right it is not income and not taxed.  But Turbo Tax started out giving you the full amount.  Then you enter what you already received so it subtracts it.  Check 1040 lines 19 and 28 and schedule 8812.

Before filing,  You can preview the 1040 or print the whole return

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