Child Tax Credit - Is there a income limit?

[Clockler1]

We have 2 kids, Married Filed Jointly.  Our AGI is ~192,000.  We received $2100 in advanced Child Tax Credit (CTC) in 2021.  Our kids are 15 and 13.  We expected our CTC to be $6000 (with the new rule), minus the            $2100 we already received.  We were still hoping to apply the remaining $3900 towards our federal income tax owed.  However, Turbo Tax is only applying $1900 remaining tax credit (noted on 1040 line 28).

Is there an income limit?  For some reason I thought it was $ 400K.

[MinhT1 · Accepted solution]

1. The new Child Tax credit phases out with income in two different steps:

• The first phaseout can reduce the CTC to $2,000 per child
• The second phaseout can reduce the remaining CTC below $2,000 per child

2. The first phaseout of CTC is reduced by $50 for each $1,000 (or fraction thereof) by which your MAGI exceeds the following income thresholds

• $150,000 if MFJ or if filing as a qualifying widow/widower

• $112,500 if filing HOH

• $75,000 if single or MFS

3. The second phaseout of CTC is reduced by $50 for each $1,000 (or fraction thereof) by which your MAGI exceeds the following income thresholds

• $400,000 if MFJ

• $200,000 all other filing statuses

With your MAGI at $192k, you are affected by the first phase out and your child tax credit is reduced to $2,000 per child under 18 for a total of $4,000 for 2 children. As you have received $2,100 in advance child tax credit payments, your balance is $1,900.

[Critter-3]

There are 2 income limits ... one for the first $2000 of the credit and another for the rest of the credit per child. 

Save a PDF of the return with all the worksheets to see how your form 8812 is being calculated.