Go to Form 2010 and see why it is calculating a penalty. Removing the CTC should have no effect on the underpayment penalty.
The Refundable Child Tax Credit appears on line 28 which is part of the "total other payments and refundable credits" on Line 32.
If you are getting the underpayment penalty it is something else that is causing the problem. A couple of spots to look at:
- How much is your total tax on Line 24?
- What is the total amount shown on Line 25d?
- What is the amount on Line 28?
- What is the amount on Line 32?
- What are your total payments on Line 33?
- What is there an amount on Line 34?
Next, do you have am amount in Line 35a or 37? If you have an amount in 35a, then there would be no penalty on your return. I then would ask you why do you think you are paying a penalty?
If there is an amount on Line 37, if there is a penalty it would be on Line 38.
Is it possible that you are disqualified from the child tax credit. What is your AGI for 2021. There are two phase outs of the Advanced Child Tax credit.
You are saying when you enter the information for the CTC then you get the penalty and that leaves me to believe that you have to pay back the CTC you received and are not entitled to the remaining half or the Refundable Child Tax Credit.
If you would like to get a token and send it through as a response or another question. We can look at the return and see if we can figure out what is going on. Keep in mind that diagnostic copies wipe out your personal information such as names, SSNs, addresses, etc. Only numbers tied into calculations and numbers inputted are shown. To get a token for us go to:
- Tax Tools
- Tools
- Share My File With an Agent.
- Send the token or number given to us.
