If line 19 on your 2020 1040 had $500 then you probably told TurboTax that the child lived with you for 5 months instead of 12 months (or you answered another question incorrectly). The tax law says that a child born *anytime* in 2020 is deemed to have lived with you the whole year.
You should amend 2020 so that you get the proper credit. Unfortunately amended returns are taking 6 months of longer to process so it will be too late to qualify for the advance 2021 payments.
You should *wait* until your return has been processed and you receive your refund or conformation that any tax due has been paid. (If you file an amended return while you first return is being processed it can cause extended delays for both returns if two returns are in the system at the same time). In addition, if the IRS makes any change on your original return, you might end up having to amend the amendment – a sticky process that can take a year or more).
-- Then you can start the amend process.
It is suggested that it be mailed certified with return receipt (or other tracking service) to verify that the IRS receives it. That is the only proof of mailing that the IRS will accept.
-- Amended returns can be mailed or e-filed - allow 8-12 weeks - can take up to 16 weeks (4 months) for processing. (Because of the IRS huge backlog it will probably take 6-8 months to process).
See this TurboTax FAQ for help with amending:
https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed
You can check the status of your amended return here but allow 3 weeks after filing for it to show up:
https://www.irs.gov/filing/wheres-my-amended-return
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
