Why doesn't federal refund show the other half of Child Tax Credit I haven't received yet?

[aowens2]

I already received the advanced payments from July - Dec but am owed 1,800 more. My federal refund doesn't seem to show that even though I already entered my advanced payments received.

[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.

And…..Ignore that “refund monitor.”  The software STARTS OFF by giving you the full amount of CTC.   When you enter the amounts from your letter, the software reconciles the amount you received with the amount you can still get IF you are eligible to get the other half.     You are NOT losing any of the credit; you are not being taxed on the credit.  Don’t get confused by the reconciled amount.   You got some of it already—-now you get the rest.

 If you received the advance payment and are NOT eligible to get the other half, then it will not show up on line 28.  (Such as in some cases where the wrong parent got the advance payments, etc.)

That “refund monitor” should not be taken seriously until every last morsel of your data has been entered.

[DoninGA]

If you are eligible the Child Tax Credit will be entered on your federal tax return Form 1040 Line 28 and is included in the federal tax refund.

You can view your Form 1040 at any time using the online editions. 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.

[JamesG1]

If you can view the entire 2021 1040 Federal tax return at Tax Tools / Print Center, you will see:

• Line 12 of Federal Schedule 8812 which computes the total Child Tax Credit, and
• Line 28 of the Federal 1040 which reports the refundable amount. 

See also this TurboTax Help.

[drdamian17]

Thanks for the help on checking my 1040, but I'm still seeing only half of the amount I should receive on line 28. Any further help? Is this a TurboTax problem?

[MarilynG1]

No, this is not a known TurboTax problem. 

Since we can't see your tax return in this forum, click this link for more info and a calculator for the Child Tax Credit.

Check your Form 8812 for the calculations of your Child Tax Credit that appears on Line 28 of Form 1040.

If you are using TurboTax Online, you will need to pay for your return to view Form 8812.  

Be sure you indicated that you lived over 6 months in the US and that your dependent info is correct.

Be sure the amount of Advance CTC you is entered is correct, per your IRS letter 6419.

The amount of your refund could be limited by your income.  There is a video at the beginning of the Child Tax Credit section explaining this.

[Edited 1/24/2022 5:57 pm]

[aj551]

If it is correctly calculating the CTC (and it's lame to charge for one to confirm), then it's very poor and misleading UI (see Deductions & Credits > Advance payments, Child and Other Dependent Tax Credits). If you enter the AdvCTC from 6419 into TurboTax, then it should display both CTC amounts for 2021: (1) AdvCTC, and (2) the rest of the credit you're owed. As is, TurboTax online only shows in the UI what you entered from 6419. And if you've filed previously with TT, then the 2021 CTC likely shows a lower amount than 2020 when in most cases, your CTC should be more (unless your AGI is significantly higher or # of dependents less/different).

[xmasbaby0]

@aj551

The "refund monitor" starts off by giving your all of the stimulus money and all of the child tax credit because the software does not know yet that you received stimulus money or that you received some advance child tax credit payments.    That gets reconciled later.

That "refund monitor" changes as you enter information.      That is normal.   And you cannot take it seriously until you enter ALL of your information---even though it is so tempting to believe that the highest amount is the "right" refund.

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.

[aj551]

None of this changes the fact that the user interface (and I'm referring mostly to the Deductions & Credits summary page, not the bait-and-switch "refund monitor") is misleading and as such, is making folks question the veracity of your product. In fact, the title of that line item on the Deductions & Credits page is, "Advance payments, Child and Other Dependent Tax Credits"... hard to read that and not assume the # displayed should include the entire CTC.

And the only way to confirm the veracity of your product is to pay for a potentially defective return or do the 1040 and Schedule 8812 manually (which ostensibly defeats the purpose of using Turbo Tax). 

[angelique-jones-]

I agree. Turbo tax seems to be miscalculating the amount owed from the Advanced CTC. My income went down in 2021 and it says that I owe money after putting in the payments received from the CTC in 2021. That doesn't make any sense. 

Why does it say I owe money after putting in that information when the AGI is well under 100k in 2021? The limit for the CTC is over 150k

[JamesG1]

@angelique-jones-

The Child Tax Credit reported on line 28 of the Federal 1040 tax return is computed in two steps: 

• First, you are given full credit for the Child Tax Credit based upon your 2021 income and the dependent information entered into your tax return, then
• Second, the benefit of the credit is reduced by the amount of any advance payments reported under Federal / Deductions & Credits / Your tax breaks / Advance payments, Child and Other Dependent Tax Credits at the screen Tell us about any Advance Child Tax Credit payments.

You are able to view the Child Tax Credit on line 28 of the Federal 1040 under Tax Tools / Tools / View Tax Summary / Preview my 1040 after each step.

Enter the information to generate the Child Tax Credit, then review line 28 of the Federal 1040 to see whether you have been given credit for the proper amount.

Then report the Advance Child Tax Credit payments received and reported on your IRS Letter 6419.

Review line 28 of the Federal 1040 to see whether you have been given credit for the proper amount.

This way you will be able to tell which step (if either) is incorrectly being reported on line 28 of the Federal 1040.

[Critter-3]

To everyone on this thread  ... stop looking at the summary comparison & the refund meter and review the actual tax return.  Compare the 2020 against the 2021 return and not the difference the placement of the CTC is this year in the flow.  On the 2020 return the CTC is first used as a non refundable credit to pay down your tax bill and any unused is reported in the payments section and added to your refund.   But this year all of the CTC is reported in the payment section but it still must be used to pay off the tax bill before anything can be refunded.

@angelique-jones- 

Ok ... let me see if I can shed some light on this situation that many folks will find themselves in this year ... that advance was probably not the best thing to happen.  Here is an example for just one child ... 

Last year the credit was $2000 of which only $1400 could be refunded after taxes were paid down.

This year the credit is $3000 (or $3600) of which you got 1/2 up front  leaving just $1500 (or $1800) for the credit on the return to pay down your tax bill.

So last year the credit on the return was $2000 and this year it is only $1500(or $1800) ... you are short $500 (or $200) on the return.   You are thinking the credit went up so my refund should be more but remember you got some in advance.  Review the 2020 & 2021 returns side by side to see this in action.  

You need to look at the entries from line 24 to 31 on your tax return form 1040. Then compare them to the same lines on last year's tax return. On these lines you will see your Total Tax (line 24) and the deductions from that tax (lines 25 to 32.) That is where you will find the difference between this year and last year, and that may explain why you owe taxes this year or have a lessor refund than expected. 

[mylesallen02]

The comparison to last year made it click for me, thank you : )

[Ammu]

Hi,

I received my federal returns(34a) for 2021,but amount as mentioned line 28 in 1040 and line 12 in schedule 8812 not yet received.Does these refund(CTC&Rebate) schedule later and send separately or am i missing any i my filing?

Thanks

[xmasbaby0]

No the child tax credit is not a separate payment.   The amount on line 28 of your Form 1040 calculated down to the refund you saw on line 35a.   And the amount on line 30 for the recovery rebate also calculated down.   Did you get the amount on line 35a?