Hello MinhT1.
Thank you for the reply. I reviewed those areas and already entered the advance child care tax credits correctly per letter. I also reviewed 8812 and looked at all lines and where it mentioned the $3000 credit. When you follow the calculations on form 1040 or 8812 you end up with $1500 refund as shown in the forms, which I assume is in addition to the advance child credits. We are MFJ and last year (2020 return) we owed a little less than $600 on Federal since we have our federal exemptions adjusted to where we won't have as big of refund. This year with slight income increases while still MFJ we owe a about $900. I was hoping the second half of the $1500 advance child credit would have offset that, but it's not and that's where I get confused. Could it be that the 2021 AGI for MFJ is now above the limit to get the second half of the $1500 advance child tax credit? We're still within the amounts to qualify for the full amounts.
I pulled this from the IRS website:
These advance payment amounts begin to be reduced if your modified AGI exceeds:
- $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
- $112,500 if filing as head of household; or
- $75,000 if you are a single filer or are married and filing a separate return.
