CWALT90
New Member

Two Part Question

Hello,

 

We had a son last year in July, and we still haven't received our tax credit. We did file in 2020, but we weren't sure where to start about contacting the IRS.

 

We also spend 18K in child care services at a local daycare facility. What actions can we now take under the new regulations? We are currently depositing 5k a year into the dependent care FSA but heard there could be more we aren't utilizing and some additional credits that will be available at filing.

 

Best,

Nick-K-EA
Expert Alumni

Deductions & credits

If you filed your 2020 return, and have not received your refund yet, check the status in the "Where's my Refund?" tool. If you received your refund, but it did not include the amount for the missed stimulus payments, you will have to amend your return.

 

Regarding childcare expenses, depending upon the specifics of your tax situation, you may be eligible for the Child and Dependent Care Credit. The tax free funds from your FSA that were used to pay for childcare do not apply toward the credit.

Nick K, EA
CWALT90
New Member

Deductions & credits

Hey Nick,

 

The "Where's My Refund" asks for a specific amount based on your 2020 expected returns. I don't believe they are used for this type of credit.

Nick-K-EA
Expert Alumni

Deductions & credits

Right. You said one thing, I thought of a different one. You are talking about the Advance Child Tax Credit payments, not your credit for the year he was born? In that case, it depends upon when you filed your 2020 return. If it was recently, they may have figured the advance payments before your return was processed, and so you didn't make the list. You can check on that at the Advance Child Tax Credit Payments Portal. If your dependent is not listed there, you won't be able to add him now, but they are doing an update later in the summer to provide that ability. When they do, they'll recalculate the remaining payments and start sending them.

Nick K, EA
CWALT90
New Member

Deductions & credits

Hey Nick,

 

So I sent to the site and signed in with my RealiD login and it says that we aren't eligible even through we fall within the income threshold. Our son was born in July of 2020 and we filed with TurboTax in February, but under that filings he has been deemed an other dependent and not a child credit. What changes do we need to make to correct this?

 

Best,