The credit is computing correctly and you are able to view the changes in this two-step process. Your refund amount changed because you are:
- First, given full credit for the Child Tax Credit, then
- Second, the benefit of the credit was reduced by the amount of advance payments reported.
In the software, TurboTax computes that you qualify for the Child Tax Credit and gives you immediate credit for the total amount of the Child Tax Credit.
You are able to view the Child Tax Credit on line 28 of the Federal 1040 under Tax Tools / Tools / View Tax Summary / Preview my 1040.
Report the Advance Child Tax Credit payments received under Federal / Deductions & Credits / Your tax breaks / Advance payments, Child and Other Dependent Tax Credits at the screen Tell us about any Advance Child Tax Credit payments.
- In box 1 report the amount of the advance payments.
- In box 2 report the number of qualifying children listed on your IRS Letter 6419, not the number of qualifying children you are reporting on your 2021 Federal 1040 tax return.
TurboTax then reduces the Child Tax Credit by the amount of the advance payments and posts the final amount again on line 28 of the Federal 1040.
You may again view this under Tax Tools / Tools / View Tax Summary / Preview my 1040.
The computations on IRS form 8812 Credits for Qualifying Children and Other Dependents and your 2021 Federal 1040 tax return can be viewed at Tax Tools / Tools / View Tax Summary / Preview my 1040.
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