Child Credit for Newborn

My son was born in December 2018 (last month). I was using TurboTax to file my tax yesterday and I was expecting I will get $2000 child credit for him. But TurboTax only put $500 instead of $2000 for the credit. Am I misunderstand the tax law or if the Software did not calculate right? 

BarbL
Employee Tax Expert

Deductions & credits

A child born anytime during the tax year will qualify you for the full $2,000 Child Tax Credit.  Double-check your entries for your son.  Be sure you entered his birthdate correctly AND indicated that he lived with you for 12 months.  That is the most common reason for not getting the full credit.  Even though he was born late in the year, he is treated as if he lived with you all year.

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Deductions & credits

Thank you so much! Haven't thought about that. When it asked me if I live with my child for 12 months, I instinctively put "NO"...He is only 1 month old! But I guess from a tax standpoint he lived with me for all year 2018...Thanks again for your help!

 

Chris

BarbL
Employee Tax Expert

Deductions & credits

You are very welcome, I'm happy to help!

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Deductions & credits

I have a similar question. TurboTax told me I received the $2,000 credit, when in reality I only received $1,000 to my refund amount. I figured this out by deleting my daughters info and watched the amount decrease by exactly $1K. She's almost 2 now and I checked the "months lived" also and its correct. My tax liability is still definitely high enough to be able to be reduced by the full $2,000. My income is well below the $400K threshold for married couples. The only thing I've come across so far is something about being self employed. I don't understand what that has to do with this credit. My wife has a VERY small business, very new, and it was actually negative this year. Im not sure why that would cause me to lose some of the CTT...

Deductions & credits

I am having the same problem for my children.  The software is not deducting the full $2k/child and I do not come close to meeting the $400K threshold.  I went back and double checked the info I entered for both children.  I'm thinking there is an error with the software?

Deductions & credits

I updated my software and it appears to be calculating correctly now.  

Deductions & credits

Just tell the system you stay with the child for the whole year and it will fix it. Mine works now.

Deductions & credits

Are you not using Turbo Tax Online? Thats what im using, so I would assume its up to date...

Deductions & credits

Nope, software. I updated and it works now.