Before I can say that TurboTax may be wrong, I need to ask some questions. There is a phase-out for the Advanced/Refunded Child Tax Credit. Is your income higher than last year?
The Child Tax Credit phases out in two different steps based on your modified adjusted gross income (AGI) in 2021.
The first phaseout can reduce the Child Tax Credit to $2,000 per child.
- That is, the first phaseout step can reduce only the $1,600 increase for qualifying children ages 5 and under, and the $1,000 increase for qualifying children ages 6 through 17, at the end of 2021.
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 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.
The first phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.
The second phaseout can reduce the remaining Child Tax Credit below $2,000 per child.
The Child Tax Credit won’t begin to be reduced below $2,000 per child until your modified AGI in 2021 exceeds:
- $400,000 if married and filing a joint return; or
- $200,000 for all other filing statuses.
The second phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.
Child Tax Credit
2021 Child Tax Credit and Advanced Child Tax Credit
Do you fall within the first phase-out? That may be why your 8812 is showing the $4,000 rather than the $6,000.
When you override an entry it may have problems getting your return to pass the Review process. Normally when there are overrides you cannot e-file your return.
After you review this information and still feel that the child tax credit is calculating incorrectly, then you could send us a token number and someone could take a look at your return. To get us a token number go to:
- Tax Tools
- Tools
- Share my file with Agent
- When you click on the Share my file with Agent it will give you a token number.
- Respond to this post with the token number and someone will take a look at your return.
