Child Tax Credit vs Credit for Other Dependents

[Utkevin]

I have 2 children and they were categorized differently on my 2020 tax return. My 4-year-old got a check in the "child tax credit" column but my other child (born August 2020) got a check in the "credit for other dependents" column. Is this because the baby did not live with me for half the tax year 2020? Also, for the recent child tax credit payments that started this month, I only received payment for one child though based on our AGI we are eligible for payments for both children. Is this for the same reason? Will the credit for my newborn come in my 2021 return? Thank you!

[Sweideman81]

I had nearly the exact same question but mine was born 12/31. I see most others getting answered, hopefully ours will get answered soon. A tax guy told me I would have to amend my return but turbo tax says it's correct when I try. Good luck.

[R-SchuleCPA]

Congratulations on your newborn- Your child is eligible for full year tax benefits which can be claimed  by entering that he/she lived with you for the whole year.  To reclaim benefits,  I recommend amending your tax return for 2020 and therein claim full benefits for your newborn. An amendment will also serve to free up advance Child Tax Credits if applicable. (But the process will take time). As always a Turbo Tax expert is there to help as needed.

[conniem123 · Accepted solution]

Congratulations on your new little one and expanding your family!  Even though your child was born in August 2020, that is considered living with you the whole year, which is the child's whole year.

You will want to amend your 2020 tax return, and edit the information for the newest dependent.  As you go through the interview questions, you will come to the question of "how many months did dependent live with you".  You will answer the whole year.  This one change will move that little check mark from Credit for other dependents to Child tax credit. 

Since on your 2020 tax return, the Child tax credit box was not checked, that is the reason the IRS did not issue the advance Child Tax Credit payment for the newest dependent.

Amended returns may not be processed in time for the IRS to issue the advance payment for the 2021 Child Tax Credit for that dependent.  You may use the IRS tool to update your dependent information.  The IRS tool is available now for certain functions, but the IRS projects late summer to update dependent information.

https://www.irs.gov/credits-deductions/child-tax-credit-update-portal

[Utkevin]

When I try to amend my 2020 return, it only takes me to the following 2 prompts/screens:

1.  Let's make sure you're getting your max credit - If your 2019 earned income is higher than your 2020 earned income of $XXX, you could get more for the Additional Child Tax Credit

2.  Let's check for uncommon situations

So it does not allow me to modify the answer to "how many months did dependent live with you".

Any suggestions?

Thank you.

[conniem123 · Accepted solution]

In the amend screens for My Info, click Edit or the circle with three dots to the right of the dependent that needs to be updated.  This will take you through the interview questions.