Perhaps I am totally misunderstanding the handling of the 2021 child tax credit. We have two children, both under age 6 and received the advance payments in 2021 (July-December) for a total of $3600. When entering all our data into TurboTax Deluxe (desktop version), once we entered the $1800/child advance credit, our refund dropped by $3600. Our AGI is about $7000 more than 2020 but is still well under the $150,000 phase out level for the credit. Is this some calculation error in TurboTax or am I totally misunderstanding the credit? In looking at the 1040 form in TT, the remaining $3600 credit is showing but I'm struggling to understand why our tax liability appears to have gone up $3600 due to the advance payments in 2021.
