Ok ... the new child will be entered in the MY INFO section and you MUST read the screens carefully ... the newborn lived with you ALL year when asked.
Next ... once you have entered in qualifying children in the MY INFO section the program automatically gives you the max CTC allowed so the Refund-O-Meter will reflect that credit. Then much later in the interview process you are asked how much CTC you got in advance ... and that amount reduces the full credit which is why the Refund-O-Meter shows a reduction to the bottom line. So you did not lose a credit so much as the credit was adjusted for the amount you already got in advance. Please review the form 8812 later to see how this works before you file the return. This also happens with the advance stimulus payments as well ... the program gives you credit for all the people on the return and when you finally enter the amount you got in advance that amount reduces your refund naturally or increases your balance due. Is this the best way to handle this news ??? Would it be better to NOT add it to the refund in the beginning and get your hopes up for a massive refund just to dash the dream later ??? Of course it would but the programmers and the powers that be don't seem to agree ... maybe they will change the flow in the future but don't count on it. Just remember the Refund-O-Meter is only correct when you have put in the last piece of information and have successfully passed the Review Tab.
