Hi,
I have two small kids under the age of 7. They have H4 visa and ITIN numbers. We are residents, living 3+ years in the USA. I'm an H1B Visa holder with SSN. My wife also has ITIN number and H4 Visa, she does not work.
Every year we had child credit during the tax return (using turbo tax). We had 500$ for each child. This year Turbo Tax does not include credit anymore. We are filling jointly and the salary is under 130k.
I don't understand what happened - my salary was increased only by 20k compared to last year. We have no other changes. It's a simple tax return with Standard Deduction (No additional Income or additional credits etc) .
This is a summary (I rounded numbers for privacy/safety):
Your Tax Breakdown 2021
Total Income $121,000
Deductions - $25,000
Taxable Income = $96,000
Blended Tax Rate x 13%
Tax Liability
This is how much you were supposed to pay in taxes.
= $12,000
Your Tax Payments and Credits 2021
Taxes Paid $12,000
Credits + $1,000
Total Taxes Paid = $13,000
Refund (or Tax Due)
This is calculated by taking your total taxes paid and subtracting your tax liability.
~$900
I don't understand why Credits + $1,000 is written in the calculation?
INFO about 500$ Credit is here. Looks we should be still eligible:
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It appears you are getting the Other Dependent Credit which is $500. The + $1,000 is being added to the amount you had withheld from your pay or estimated payments you made to come up with your total payments and credits.
The $1,000 is your Other Dependent Credit for your 2 kids.
Your kids would not be eligible for the Child Tax Credit since they do not have a social security number that is valid for employment.
Yes, I agree, I'm only eligible 500$ dependent credit but why it's not included in the final federal return amount? Last year I had 2x500$ for kids. This year, it's not included.
Your dependent credit should be listed on line 28 of form 1040. If it is on line 28, then it is included in your refund.
You can preview your form 1040 by following these steps:
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