turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Ask the Experts All About the W-4! >> Event happening TOMORROW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

As soon as I add advance Child Tax Credit amount, my tax due amount jumps by a few thousand. I thought these credits were not taxable and should not count towards income?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

As soon as I add advance Child Tax Credit amount, my tax due amount jumps by a few thousand. I thought these credits were not taxable and should not count towards income?

No they are not taxable but Turbo Tax started out giving you the full amount as a credit.  Then you entered what you already got so it subtracted it off.

As soon as I add advance Child Tax Credit amount, my tax due amount jumps by a few thousand. I thought these credits were not taxable and should not count towards income?

First let me point out that the Refund-O-Meter is only correct once all your income and expenses have been entered and the program is fully operational. With each entry of income or expenses the meter will continue to vary as the program recalculates the return with each step you take.  If this annoys you then turn off the meter until the end.   

 

 

Next ... the program interview flow is  poorly designed  and it  will give you a false refund total early in the interview.   The program gives you 100% of the CTC and the third stimulus credit once you have completed the MY INFO tab early in the interview  and  then much   later in the deductions & Credits tab  you are asked how much of these credits you got in advance and then the credits are adjusted for the advance payments which will show as a reduced refund amount or an increase in the balance due.  

 

Same thing for the EIC … the program gives you the credit in the refund posted BEFORE  you get to the EIC portion of the interview.  At that point it asks you a couple of questions that could possibly REMOVE the credit already reflected in the refund posted  which is also a point of confusion for many. 

 

One day the programmers may  get this changed to more timely reflect the section you are working on as you work on it and not way in advance.  Users are not happy when they see the refund being reduced without a good explanation especially when the program says you can get $X as a credit and they see the refund either being reduced or not increased.

 

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question