somewhere on form 1040 or schedule 8812 the payment protection should be reflected to illustrate this event taking place. line 19 is for nonrefundable dependent credit such as supporting a person over 18 which is $500 in my case. This is then subtracted from the tax owed to formulate my total tax. I would think that repayment protection should be classified as a nonrefundable credit since it can directly affect both my nonrefundable and refundable credit but that is probably wishful thinking blended with my limited knowledge on the IRS definitions of what classifies as refundable and nonrefundable--- and where this is protection and never clearly stated as a credit of any type it escapes either "fundable" classification even though it can ironically affect both. ( a one way valve)
I do qualify for repayment protection based on the qualifiers given, however the credit is being shifted from one previously qualifying child to another currently qualifying child and the aggregate qualifying children count has decreased by 1 child. Therefore, the IRS is saying on schedule 8812 that they are using line 5 to filter out context and basically saying " well, this credit is now for the qualifying kid, not the unqualified kid so now we dont have to credit you for the qualified kid on your return moving forward." resembles a bait and switch in my opinion and should be exactly what payment protection is established for.
At any rate my question is still open but if i had to close this ticket today, i think the image you pasted provides a close explanation to my situation (paragraph 3 "You may have received etc"). It is saying that the IRS thinks all of my child tax credit has already been paid monetarily without regarding the context and is taking from my credit instead of my tax owed so they can get away with it without granting me payment protection?
