2021 child tax credit

Forum|Forum|4 years ago
January 29, 2022
2 replies
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I read that for 2021 the government raised the child tax credit from $2000 to $3600, but Turbo Tax software is still showing $2000. Is the software correct?

xmasbaby0

Level 15

If your income was above the limit then the CTC amount is phased out for you.

Q C2. Can my Child Tax Credit amount be reduced based on the amount of my 2021 income? (added June 14, 2021)

A2. Yes. The Child Tax Credit phases out in two different steps based on your modified adjusted gross income (AGI) in 2021.

The first phaseout can reduce the Child Tax Credit to $2,000 per child.

That is, the first phaseout step can reduce only the $1,600 increase for qualifying children ages 5 and under, and the $1,000 increase for qualifying children ages 6 through 17, at the end of 2021.

The second phaseout can reduce the remaining Child Tax Credit below $2,000 per child.

For additional information on the amounts of modified AGI that reduce the 2021 Child Tax Credit, see Q C4 and Q C5, below.

Q C4. How does the first phaseout reduce the 2021 Child Tax Credit to $2,000 per child? (added June 14, 2021)

A4. The Child Tax Credit begins to be reduced to $2,000 per child if your modified AGI in 2021 exceeds:

$150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
$112,500 if filing as head of household; or
$75,000 if you are a single filer or are married and filing a separate return.

The first phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

jbilbrey1 Author

Level 2

I am not over the dollar amount (under $100,000) and should not be phased out, but it is not showing the $3600. The software is showing $2000. Is there a way to check software?