topic 2020 Increased Child Tax Credit in Deductions & credits

2020 Increased Child Tax Credit

JJB1468 — Wed, 17 Mar 2021 15:26:18 GMT

I started my return on TurboTax before the stimulus bill was signed increasing the child tax credit from $2000 to $3000. I have not filed yet. I opened up TubrboTax today and update installed. But when I looked at my return (still in progress), the credit is still only $2000. How do I get it to $3000? My income is low enough where I qualify for the increase.

Re: 2020 Increased Child Tax Credit

xmasbaby0 — Wed, 17 Mar 2021 15:36:09 GMT

That CTC increase is not for 2020; it is for 2021. Your 2020 return does not have to be amended for it. More information will be available soon; the details of how it will be implemented have not yet been clarified fully. There may be monthly payments going out beginning in July 2021, with some of the CTC still left as a refundable credit on your 2021 tax return next year.

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/01/1393859#U1393859

Re: 2020 Increased Child Tax Credit

DianeW777 — Wed, 17 Mar 2021 15:40:58 GMT

This will not take place on the 2020 tax return at this time, and maybe not at all. You should file your tax return as is with the original child tax credit (CTC), then the IRS will make the necessary payments separately for the third round of stimulus.

You could wait, however at this time I would advise you file your tax return and then wait for the IRS to release the funds. This way they will have the current information on how much you will be entitled to in full when they do the reconciliations. They are only paying an advance of part of the third stimulus right now.

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