Child dependent born in 2021 but not pulling into Child Tax Credit box

[Drew the Dad]

I have 2 children which I claimed in 2020. I had a 3rd child in late 2021. All of them are under 6. I received the advanced credit ($1800 each) for the first 2 but not for the child born in late 2021. I am now trying to get the full $3600 for the 3rd child on my 2021 taxes (plus the remaining amount for my other children).

I added the new child as a dependent in TurboTax, however, in the CTC section the credit is showing up as $7200. That would be correct for the first 2 children born prior to 2021 ($3600 x 2 = $7200), but that would not be correct for the additional child I had in 2021. The correct amount should be $10,800 ($3600 x 3 children).  Therefore, I believe the child born in 2021 which I added to my TurboTax account is not being accounted for to get my full CTC.

My question is whether TurboTax is still filing for my $3600 for the child I had in 2021 (and factoring that into my refund) even though it only says $7200 (2 kids) instead of $10,800 (3 kids) in the CTC section?

See screenshot:

[xmasbaby0]

Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number. If your child was born in 2021make sure you said he lived with you the whole year.  There is an oddly worded question that asks if the child paid over half their own support.  Say NO to that question.

Federal>Deductions and Credits>You and Your Family>Child Tax Credit

The IRS is sending out letter 6419 to you.  It will show the amount of advance child tax credit that you received during 2021.  Enter the information from that letter carefully.   The remaining amount of CTC that you can receive will show up on line 28 of your 2021 Form 1040.

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

NOTE:   The CTC is indeed a “credit” that can be applied toward any tax liability that you would otherwise have to pay as “tax due”  to the IRS.

[xmasbaby0]

And.....you should not be expecting to "get"  $10,800 as a refund.   You received $3600 already.    You "get" another $1800 for each of the older children and $3600 for the baby.   That means you get $7200 as part of your 2021 refund.

[Critter-3]

I can almost guarantee you messed up on this screen where it told you what to enter for the new born ...

[Drew the Dad]

Yup, that was a weird question about paying for themselves as a newborn... but I answered all those correctly. Still says $7200 in that CTC box which would only account for 2 of 3 children under 6 years old. Thanks though!

[Drew the Dad]

Gotcha, thanks!

So what you're saying is the $7200 in the box from the screenshot represents the credit amount I'm getting ($1800 + $1800 + $3600 (newborn)) and not the total that I was entitled to in 2021 which would be $10,800 ($3600 x 3). 

Right?

[Vanessa A]

Correct.  The amount you are seeing is the amount that you have not yet received, but that will be credited on your 2021 tax return.  The amount you already received is not included in this amount. 

[xmasbaby0]

Pay attention to line 28 of your Form 1040.   That line shows how much you can still get.   And remember that it is a credit that can be used to pay any tax liability that you still owe to reduct your "tax due."

[classics1018]

I had the same issue with my son born in 2021; didn't claim them on the advanced child tax credit.  MFJ.  We received 1800 out of the 3600 for our firstborn, and did not claim advanced for the one born in 2021.  Do not believe the TurboTax software is currently working these numbers properly as there is no $3600 credit being given for the newborn, born in 2021.

[classics1018]

nope, made all those selections properly and still shows no refund for my child born in 2021.

[classics1018]

for instance; if i run the scenario that i did not have a dependent in 2021 that was born, it still shows the same federal/state refund vs. when i do input the info...

[VolvoGirl]

So you should be getting the other half 1800 + the new 3600 = 5400?  What is on lines 19 and 28?  

[xmasbaby0]

@classics1018

Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number. If your child was born in 2021make sure you said he lived with you the whole year.  There is an oddly worded question that asks if the child paid over half their own support.  Say NO to that question.

[slimjimlim]

I'm in the same scenario with 2 kids claim CTC but not the 3 kid that was born in 2021.  You said to check line 28 in form 1040, mine is blank.  In theory 2 kids above 6 should get 3000 x2 minus 1,500 x2 + 3600 should equal 5100 but I'm receiving less than that. I triple check the dependent's information, no they didn't work, live with us the whole year.  Let me know what I'm doing wrong, thanks.

[xmasbaby0]

@slimjimlim   

Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number. If your child was born in 2021make sure you said he lived with you the whole year.  There is an oddly worded question that asks if the child paid over half their own support.  Say NO to that question.  Make sure you did not accidentally say the child's Social Security number is not valid for employment--that will mess you up.   

Try deleting the baby in My Info and then re-enter his information----go very slowly and carefully so you do not miss anything.

As for how much you should be getting.-----  If you received the advance payments   (2 x $1500)    for the older two kids who are 6 or older you get another $3000 for them (2 x $1500 per child) and you should get the full $3600 for the baby born in 2021---assuming you are not in the higher income range that causes the credit to phase out.   You should see the CTC on line 28 of your Form 1040.

Is your income too high----is the credit phasing out for you?

Q C2. Can my Child Tax Credit amount be reduced based on the amount of my 2021 income? (added June 1...

A2. Yes. The Child Tax Credit phases out in two different steps based on your modified adjusted gross income (AGI) in 2021.

The first phaseout can reduce the Child Tax Credit to $2,000 per child.

• That is, the first phaseout step can reduce only the $1,600 increase for qualifying children ages 5 and under, and the $1,000 increase for qualifying children ages 6 through 17, at the end of 2021.

The second phaseout can reduce the remaining Child Tax Credit below $2,000 per child.

For additional information on the amounts of modified AGI that reduce the 2021 Child Tax Credit, see Q C4 and Q C5, below.

Q C4. How does the first phaseout reduce the 2021 Child Tax Credit to $2,000 per child? (added June ...

A4. The Child Tax Credit begins to be reduced to $2,000 per child if your modified AGI in 2021 exceeds:

• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
• $112,500 if filing as head of household; or
• $75,000 if you are a single filer or are married and filing a separate return.

The first phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.