Child Tax Credit - Incorrect Calc?

[rc3po]

Hi ... we received 6 payments in CY2021 totaling $1,000.  We have a 16 year old and a 20 year old.  Based on my readings, I was expecting to get another $1,000 on this year's tax return.  Unfortunately, when I enter the $1,000 that we received, instead of getting another $1,000, it deducts my refund by $1,000.  In looking at the following statement, it seems like that calc is off (based on our combined income, married filing jointly ... above $150k, but well below the $400k threshold):

You can take full advantage of the credit only if your modified adjusted gross income is:

• Single: under $75,000.

• Head of household: $112,500.

• Married filing jointly: $150,000.

The credit begins to phase out above those thresholds.

• First phaseout: Income exceeds the above thresholds but is below $400,000 (married filing jointly) or $200,000 (all other filing statuses). Your total credit per child can be reduced by $50 for each $1,000 (or a fraction thereof). This phaseout will not reduce your credit below $2,000 per child.

• Second phaseout: Income exceeds $400,000 (married filing jointly) or $200,000 (other filing statuses). The phaseout will continue docking $50 per each $1,000 and begin to reduce your credit per child below $2,000. You may be disqualified from the credit altogether.
  
  

Many thanks for any help that can be provided!

[VolvoGirl]

One reason is Turbo Tax started out giving you the full amount.  Then you enter what you already received so it subtracts it.  Check 1040 lines 19 and 28 and schedule 8812.

Before filing you can preview the 1040 or print the whole return
https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...

[RobertB4444]

You said that you received 6 payments totaling $1,000.  That seems a little off.  Have you received your letter 6419 from the IRS yet?  It should detail how much you received in advance child tax credit.

Your 20 year old did not provide you with any advance credit.  The credit is only for those under the age of 19.  

The child tax credit for your 16 year old is $3000 minus whatever advance credit you received.  It will also be reduced by $50 for every $1,000 over $150,000 that you earned, down to $2,000.  So if you made $190,000 then it would be reduced to a total of $2,000 minus your advance payment.  And, as I said before, 6 payments totaling $1,000 needs to be double checked.

[rc3po]

Thanks ... this is what I am showing:

line 19 --- $1500
line 28 --- $1,000

From 8812
line 5 --- $2000
line 7 --- $500
Line 8 --- $2500
Line 12 --- $2500
(B1) -- $1000
14a -- $500
14b -- $2,000
14c  -- $30,540
14d -- $500
14e -- $2,500
14f  -- $1,000
14g -- $1,500
14h -- $500
14i -- $1,000

[rc3po]

Many thanks ... we haven't received letter 6419 from the IRS.  I'm on hold with them now (online) to gain access to the IRS portal.

We made just over $200k.  I double checked Quicken and our payouts were July through Dec totaling $1,000.

What's odd, is that we were getting back around $1,500 before I ever touched this section of Turbotax.  Once I said I received the $1,000 in payments last year, it immediately subtracted $1,000 from our refund.

[VolvoGirl]

Maybe you missed my first post. .....Turbo Tax started out giving you the full amount.  Then you enter what you already received so it subtracts it.

[rc3po]

Thanks ... bummer if that's the case.  It's like going to the carnival and already having a prize in your hand as you enter the park ... but you don't know it.  🙂

It's hard for me to wrap my head around me getting the other $1,000 that I was expecting, hence I am seeing a $2k delta in my return.  I can normally guess my return within a couple hundred dollars.  I saw that I was at a $1,500 return ... then I go into the child tax credit section (enter that I did $1,000 last year), then my return goes down to $500 ... when I was expecting it to go up to $2,500.

I'll chew on it a bit, but thanks for your explanation.