Deductions & credits

@ibrahimtorunergil 

Your story is what I would expect.  If your child was not eligible for an SSN, and you were only applying for an ITIN in 2022, then the most you would get is $500, regardless of what Turbotax tried to claim.  (The program may have a blind spot here.)   The IRS denied the $500 credit because they denied the ITIN.

 

@AmeliesUncle  and I have a different interpretation of the code.  It it my understanding that you can file an amended return, add your child, and claim the $500.  In this case, you would use the SSN, since it is already issued.  Again, Turbotax may try to claim $2000 for you, but the IRS would look at the issue date of the SSN and automatically reduce it to $500.  But I believe you should get the $500.

 

The other problem you will have is that the tax data file you currently have probably already claims the child, so turbotax won't see anything to amend.  You need to start by preparing new 2022 and 2023 returns that leave off this child.  Mark the returns as "filed" by printing a copy, so the program thinks you filed (but don't actually send it in).  Then save your work, close, reopen the return, click "Amend" to start amending, and add this child with their SSN.  That will prepare an amended return that you can mail to the IRS.  But remember that even if Turbotax tries to claim $2000 for the child, you should expect to get $500.