I filed my 2022 tax returned and claimed Adoption Tax Credit as well as the Child Tax Credit. While inputting my information Turbo Tax said I qualified for ATC. I have 5 dependents, so my total Child Tax Credit is $10,000. MY overall tax liability is $10,776. Turbotax listed my CTC as $2,500 and used my adoption credit to zero out my tax liability. The remaining $7,500 of the CTC was allocated under ACTC so it can be refundable. IRS is now changing my CTC to $10,000 and limiting my adoption credit to the remaining portion of my tax liability of $776. IRS is saying Turbotax is wrong on how it allocated a portion of my CTC under ACTC so I could receive more back. Is this correct?
