Get your taxes done using TurboTax

That is normal for advance payments of tax credits; you claim the full credit on your return, but then must deduct the advance from the full credit. The old advance EITC worked the same way.

 

In your case, TurboTax apparently computed the $500 as including a full CTC without receiving the advance payment; once you entered your advance CTC that reduced your credit dollar-for-dollar.