Get your taxes done using TurboTax

Yes, it may seem unfair, but what I think you are not understanding is that this is ALL about the Child Tax Credit for Tax Year 2021. 

The credit is figured first FOR Tax Year 2021, then the advance payments you received are subtracted. The result is what you get. 

For SOME Taxpayers, the result is that they get no credit AND they have to pay the advance credits back. 

For these Taxpayers, and only these Taxpayers does the "Re-payment Protection" possibly apply. 

This is how the tax law was written. TurboTax only follows the law. 

According to the IRS:

"The amount of advance Child Tax Credit payments that you received during 2021 is based on the IRS’s estimate of the Child Tax Credit amount that you properly would be allowed for the 2021 tax year. The law requires this estimate to be based on these primary sources of information:

1. Your 2020 tax year return or, if that return is not available, your 2019 tax year return (including a 2019 tax return filed through the Non-Filer Tool for Economic Impact Payments on IRS.gov, or a 2020 tax return filed through the Child Tax Credit Non-filer Sign-up Tool); and
2. Any updated information you provided to the IRS in 2021, including information provided through the Child Tax Credit Update Portal (CTC UP).

Family and life situations can be fluid throughout a given year. Here are examples of changes that could have resulted in excess advance Child Tax Credit payments.

• A qualifying child who resided with you may have changed homes during 2021 and resided more than half of the 2021 tax year with a different individual.
• Your income increased in 2021.
• Your filing status changed for 2021.
• Your main home was outside of the United States for more than half of 2021.

As a result of these types of  family and life changes, you may have received a total amount of advance Child Tax Credit payments that exceeds the amount of Child Tax Credit that you  are allowed on your 2021 tax return."

IRS LINK on Child Tax Credit