Deductions & credits

There are income eligibility limits.  Do you meet those limits? The Child Tax Credit begins to be reduced to $2,000 per child if your modified AGI in 2021 exceeds: 

• $150,000 if married and filing a joint return or if filing as a qualifying widow/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.

TurboTax will compute the full amount of the Child Tax Credit if:

• You enter a dependent in your tax return, and
• The dependent qualifies as a qualifying child.

Tests to be a Qualifying Child 

1. The child must be your son, daughter, stepchild, foster child, brother, sister, half- brother, half- sister, stepbrother, stepsister, or a descendant of any of them.
2. The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled.  
3.  The child must have lived with you for more than half of the year. 
4. The child must not have provided more than half of his or her own support for the year.  
5. The child must not be filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid).

In January 2022, the IRS will send you Letter 6419 to provide the total amount of Advance Child Tax Credit payments that were disbursed to you during 2021.  You and your spouse will each receive your own letter with the total you each received.

The amount of Advance Child Tax Credit payments will be entered at the screen Tell us about any Advance Child Tax Credits.

TurboTax software will compare the credit, deduct the advance payments and post a Child Tax Credit on line 28 of the Federal 1040.

You may view the entry under Tax Tools / Tools / View Tax Summary / Preview my 1040.

See this TurboTax Help.