Deductions & credits

Hello Dawn,

First, regarding the first and second stimulus payments, you should have been able to claim those payments as a Recovery Rebate Credit on your 2020 Federal return.   If your daughter qualifies as a dependent, you should have received $500 for the first stimulus payment and $600 for the second stimulus for your daughter.  Since you did not receive the two stimulus payments, I would recommend amending your 2020 return to receive both credits. 

Instructions to Amend using Turbotax Online:

1. Sign in to your Turbotax account

2. On the Tax Home Screen scroll down to your 2020 Return information. 

3. Under the 2020 return information, there should be an option to Amend/Change the Return.  Click that option and click Amend using Turbotax Online.  

4. Turbotax Online will ask why you are amending.  You can explain you are amending to add the Recovery Rebate Credit.  

5.  The Amend Screen will include your income, deductions, and credits.   You will want to scroll to the bottom of the screen and click "continue."  One of the next few screens should ask if you received the total stimulus payments you should have based on your income/dependents.  The Turbotax Online program calculates the amounts based on your income/dependents.  You will select "No", and enter the amounts you actually received.   If the amounts you entered are less than what you should have received, Turbotax Online will add the Recovery Rebate credit in the amount that you should have received.  

How to Amend using Turbotax Desktop: 

1.  Open the 2020 Turbotax Desktop Program.

2.  On the first Desktop Screen, you will select "Amend a Filed Return."

3.  You will want to amend the 2020 return that was filed.  

Second, regarding the child tax credit, I assume you are referencing the both the 2020 Child Tax Credit and the 2021 Advanced Child Tax Credit.  To determine why you did not receive the 2020 credit/Advance child tax credit, I would recommend checking a few entries on your 2020 return to make sure they are correct. 

First, you want to review the My Info Section on your 2020 return.  You can do this by scrolling to the bottom of the Turbotax Screen and clicking "Add a State" under your 2020 return information.  This will open up your original filed 2020 return.  You will want to Select Federal and My Info once the return loads.   You want to select "Edit" next to your dependent.  Progress through the dependent question screens.  You will come to the screen that asks to enter your daughters social security number.  This screen also has a question "Is your dependent's Social Security Number Valid for Employment?"  Make sure this box is not checked.  The Social Security Administration issues social security cards "NOT VALID FOR EMPLOYMENT" to individuals who are lawfully admitted to the United States without work authorization from DHS, but have a valid non-work reason for needing a Social Security number.  Checking this box would make your dependent ineligible for the Child Tax Credit.  If the box is checked, you do not want to change it in this screen.  Click Tax Home on the left menu and Click Amend/Change Return to uncheck the box.  

Second, I would verify that the other options in the Dependent screen are correct.  Be sure that the entry that the dependent lived with you all year/12 months is entered (if applicable), etc... Also, if you have filed an amended 2020 return that is still pending with the IRS this seems to cause a delay in the IRS issuing the advance child tax credit.  

If you received the child tax credit on your 2020 return (check your form 1040 Line 19 and Line 28), but not the 2021 Advance Child Tax Credit, I would recommend visiting the IRS Advance Child Tax Credit Portal at the link below.  You can check your eligibility and update information if needed.  According to the IRS, in "Late Summer" you should be able to use the portal to "Make changes to your dependents, marital status and income" and "Re-enroll if you previously unenrolled."

Link: https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021