Child born in 2021 - child tax credit and stimulus #3

[daktlng]

My 5th child was born on January 4th, 2021. My other 4 children turned 9, 7, 5, and 3 during 2021. TurboTax appears to have calculated the child tax credit for my 4 older children correctly, but not my 5th child. I received $6,600 total through the monthly payments from July through December. This is correct ($3000 + $3000 + $3600 + $3600  = $13,200, half of that is $6,600). That means I should receive the other half ($6,600) as part of this tax return. I should also receive the entire amount ($3,600) for my 5th child. That should total $10,200. But TurboTax is showing only $9,100 for the child tax credit. Why is that? How can I fix it?

Also, I never received the 3rd stimulus payment for my 5th child. I received the correct amount for myself, spouse, and 4 other children, but due to my 5th child being born in 2021, I did not receive that stimulus payment for him. I should receive that now as part of this return. I cannot find that anywhere on TurboTax. Where is that? How can I be certain I will receive that?

[JamesG1]

View the computation of the Child Tax Credit on line 12 of Federal Schedule 8812.  You are able to view the entire 2021 1040 Federal tax return at Tax Tools / Print Center.

If the software did not compute the correct credit amount, review the dependents at My Info.  Dependents need to be qualifying dependents to qualify for the Child Tax Credit.

Tests to be a Qualifying Child 

1. The child must be your son, daughter, stepchild, foster child, brother, sister, half- brother, half- sister, stepbrother, stepsister, or a descendant of any of them.
2. The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled.
3. The child must have lived with you for more than half of the year. 
4. The child must not have provided more than half of his or her own support for the year.
5. The child must not be filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid).

You enter the Advance Child Tax Credit payment amounts at the screen Tell us about any Advance Child Tax Credits.  Make sure that you enter the correct amount received.  Line 28 of the Federal 1040 reports the refundable amount after netting the advance payments from the Child Tax Credit amount.

See also this TurboTax Help.

The $1,400 Recovery Rebate Credit will be found on line 30 of the 2021 Federal 1040 tax return and should reflect the amount for the newborn child.  View the Recovery Rebate Credit Worksheet to see the calculation for the credit.

TurboTax will compare your stimulus payment amount to the computations within TurboTax.  The computations within TurboTax are based upon the information that you have entered into the tax software.  If you are due an additional amount, it will be issued as a Recovery Rebate Credit on line 30 of the 2021 1040 tax return.

In TurboTax Online, you are prompted to input the third stimulus check information under Review down the left hand side of the screen.  You can also access your stimulus check choices by following these steps: 

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Other Tax Situations.
• At the screen We're almost there… or the screen That's all we need…,  click on Let’s keep going.
• At the screen Let’s double-check the amount you received, answer the questions and click Continue.

The Recovery Rebate Credit Worksheet can be viewed in the 2021 Federal tax return at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.

[daktlng]

I have looked through the forms you mentioned. I found that line 5 on Schedule 8812 shows 15,700. I'm pretty certain it should be 16,800. It says it got that number from a Line 5 Worksheet. Where can I find that worksheet? 

Regarding the 3rd stimulus payment, I found that line 30 of the 1040 tax return is blank. I believe that should be 1,400. Where can I find the Recovery Rebate Credit Worksheet?

[VolvoGirl]

Be sure you said the new baby lived with you the WHOLE YEAR! Go back and check that.

If you had a child born in 2021- Add them under My Info. You need to answer 2 questions…..

Did your child live with you for the whole year? Answer YES even if they were born late in the year (even on Dec 31).

Then was at least half of child's expenses paid by CHILD? Usually is NO.

If you qualify the 1,400 Recovery rebate credit will be on line 30 and either increase a refund or reduce a tax due.  You also should get the Child Tax Credit 3,600 for them on line 28.

OR you have a high income and do not qualify for any more Recovery Rebate Credit.  

Do you get the Stimulus question page?

To get to the stimulus questions in TurboTax at any time, you can search for stimulus or recovery rebate credit then hit ENTER and there should be a Jump to link

If you are trying to trigger it,
Click on Other Tax Situations at top
Click on Let's get started
Answer some questions then Continue
Then click on Let's keep going
Next screen is for the Third Stimulus, if you qualify

[VolvoGirl]

Here is the  IRS 8812 instructions.   Line 5 worksheet is on page 4 to help you figure it out

https://www.irs.gov/pub/irs-pdf/i1040s8.pdf