Deductions & credits

Don't change anything on your W-4 ... this was an unusual tax year. 

 

Look at the form 8812 & the 1040 ... note that the  tax bill of $6632 on  line 24  is being paid with the withholdings on line 25d + the CTC on line 28  which gives you a refund of line 35a.   The form 1040 is one long math problem ... follow the calculations on the 1040 & 8812. If they did not give you the $6600 in advance your refund would be $6600 larger.  

 

When reviewing the 2020 vs 2021 return understand that last year the CTC was only $2000 per child ($8000 for 4 on the 2020 return)  which paid down your tax bill.   This year it is $3000 or $3600  but you got 1/2 in advance which means there was only $6600 on the 2021 return to pay off the taxes ... so naturally your refund will look about $1400 less than last year.