Child Tax Credit not calculating correctly

Forum|Forum|4 years ago
February 13, 2022
2 replies
44 views

A little confused why Turbo Tax does not seem to all the the full Child Tax Credit. Understand that 2021 there was an update, that allows increase up to $3000 per child (ages 6 thru 17). Also understand that government sent out some Advance payments. You would/could receive only half of what you could obtain in the advance payment. So in my case with 2 qualifying children in the age bracket means potentially 2 x $3000. We received 6 checks that totaled $1000 for each child or 2 x $1000. I enter this correctly in Turbo Tax. we lived in the house entire year. When done with the section, TurboTax only gives me the $2000 credit (as entered above)...but seems we still should be getting the other half- the other 2 x$1000 ($2000) for a total of $4000 or (2 x $2000).

How do I get the full $4000??? There does not seem to be a way to get this other owed standard deduction.

xmasbaby0

Level 15

What line of your tax return are you looking at?

The remaining amount of CTC that you can receive will show up on line 28 of your 2021 Form 1040. Then it will calculate down to the refund you see on line 35a or the tax due on line 37.

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.

**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.**

xmasbaby0

Level 15

Or---is it this?

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.

JumpinJohnny31Author

Level 2

Thank you for the reply. Even if it is this/that, which I did read before... the minimum amount per child should still be $2000, right?

So, just as the last few years, with 2 children, you should get 2x$2000 or $4000 in reduction/deduction. So, even if the 2021 update did not occur the worst case should still be , for my case $4000. Best case would be $6000 with the update. However due to AGI being higher than 150k but less that 200k I should still at the very minimum get $4000 total. Now, again, they provided $2000 total in Advance checks. So...that still leaves me to have $2000 additionally deduction(not considered as Advanced). Which I cannot seem to get entered anywhere. When you look at the summary of of deductions it still only shows $2000 (from the 2x$1000 checks). So, where is my other $2000??? IF, I had $4000 for last few years, I should still have $4000 total this time around as well. Thanks

Wefixcomputers05

Level 2

I have the exact problem

I hope they are of it and working on it

DawnC

Level 15

If you income does not exceed the limits, your issue may be that the dependent children are not showing as dependents. Preview your tax return and ensure the Child Tax Credit box is checked on the dependent column 4. If they are not listed as dependents qualifying for the Child Tax Credit, review your dependent entries to ensure you answered everything correctly.

Then look on Line 28 to see your Child Tax Credit included in your refund amount. It will be your total child tax credit less what you already received in advance.

If you are still having an issue with your Child Tax Credit, you might want to start a new thread, as this one appears to be resolved. @Wefixcomputers05

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