AL does not tax the child tax credit. The law says: What types of Federal American Rescue Plan Act (ARPA) funds might qualify me for an increased federal income tax deduction?
- Federal child tax credit (including advanced payments received in 2021)
- The earned income tax credit
- Federal child and dependent care credits
If you did not claim any of the above credits on your federal return, then you are not eligible for the enhanced Alabama Federal Income Tax Credit.
@SteamTrain is correct that it will take time to update the software.
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