I have received a letter from the IRS that I owe an addition $1,000 due to an error in calculating the Child Tax Credit Amount. I have 3 dependent children aged 21,18, 15 in 2021. If I am reading the instructions correctly, that means I should get $2,000 (based on the worksheet below.) The IRS is stating that this should be $1,000. Are they right?
| Worksheet for Line 5 Schedule 8812 | Amount |
| 1. Multiply Schedule 8812, line 4b, by $3,600 | $ - |
| 2. Multiply Schedule 8812, line 4c, by $3,000 | $ 3,000 |
| 3. Add line 1 and line 2 | $ 3,000 |
| 4. Multiply Schedule 8812, line 4a, by $2,000 | $ 2,000 |
| 5. Subtract line 4 from line 3 | $ 1,000 |
| 6. Enter the amount shown below for your filing status • Married filing jointly — $12,500 • Qualifying widow(er) — $2,500 • Head of household — $4,375 • All other filing statuses — $6,250 | $ 12,500 |
| 7. Enter the smaller of line 5 or line 6 | $ 1,000 |
| 8. Enter the amount shown below for your filing status • Married filing jointly or Qualifying widow(er) — $150,000 • Head of household — $112,500 • All other filing statuses — $75,000 | $ 150,000 |
| 9. Subtract line 8 from Schedule 8812, line 3 • If zero or less, enter -0- • If more than zero and not a multiple of $1,000, enter the next multiple of $1,000 For example, if the result is $425, enter $1,000; if the result is $1,025, enter $2,000, etc. | $ 88,000 |
| 10. Multiply line 9 by 5% (0.05) | $ 4,400 |
| 11. Enter the smaller of line 7 or line 10 | $ 1,000 |
| 12. Subtract line 11 from line 3. Enter on Schedule 8812, line 5 | $ 2,000 |
