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Child credit calculation

TurboTax is calculating child tax credit allowance per child as $500 per child, meanwhile IRS says it has to be $2000 per child. 

All kids are below the age of 17. All of them lived fully in the USA with me for the tax year, and all of them are permanent residents.

All kids have SSN.

When I input same info on TaxAct, it calculates correctly, $2000 per child.

What is the confusion here ?

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1 Reply
JohnB5677
Expert Alumni

Child credit calculation

You seem to have a handle on the credit. We can't see your return, so it would be hard to evaluate, but check your income level.

 To be a qualifying child for the 2023 tax year, your dependent generally must:

  • Be under age 17 at the end of the year
  • Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew)
  • Provide no more than half of their own financial support during the year
  • Have lived with you for more than half the year
  • Be properly claimed as your dependent on your tax return
  • Not file a joint return with their spouse for the tax year or file it only to claim a refund of withheld income tax or estimated tax paid
  • Have been a U.S. citizen, U.S. national or U.S. resident alien

You qualify for the full amount of the 2023 Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return).

Parents and guardians with higher incomes may be eligible to claim a partial credit.

Use our Interactive Tax Assistant to check if you qualify.

 

If I've misunderstood your question, and this does not completely answer it, please contact us again and provide some additional details.

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