Child Tax Credit not calculating correctly

[JumpinJohnny31]

A little confused why Turbo Tax does not seem to all the the full Child Tax Credit. Understand that 2021 there was an update, that allows increase up to $3000 per child (ages 6 thru 17). Also understand that government sent out some Advance payments. You would/could receive only half of what you could obtain in the advance payment. So in my case with 2 qualifying children in the age bracket means potentially 2 x $3000. We received 6 checks that totaled $1000 for each child or 2 x $1000. I enter this correctly in Turbo Tax. we lived in the house entire year. When done with the section, TurboTax only gives me the $2000 credit (as entered above)...but seems we still should be getting the other half- the other 2 x$1000 ($2000) for a total of $4000 or (2 x $2000).

How do I get the full $4000??? There does not seem to be a way to get this other owed standard deduction.

[xmasbaby0]

What line of your tax return are you looking at?

The remaining amount of CTC that you can receive will show up on line 28 of your 2021 Form 1040.   Then it will calculate down to the refund you see on line 35a or the tax due on line 37.

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]

Or---is it this?

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.

[JumpinJohnny31]

Thank you for the reply. Even if it is this/that, which I did read before... the minimum amount per child should still be $2000, right?

So, just as the last few years, with 2 children, you should get 2x$2000 or $4000 in reduction/deduction. So, even if the 2021 update did not occur the worst case should still be , for my case $4000. Best case would be $6000 with the update. However due to AGI being higher than 150k but less that 200k I should still at the very minimum get $4000 total. Now, again, they provided $2000 total in Advance checks. So...that still leaves me to have $2000 additionally deduction(not considered as Advanced). Which I cannot seem to get entered anywhere. When you look at the summary of of deductions it still only shows $2000 (from the 2x$1000 checks). So, where is my other $2000??? IF, I had $4000 for last few years, I should still have $4000 total this time around as well. Thanks

[xmasbaby0]

@JumpinJohnny31 The second phaseout can reduce it to less than $2000 per child.

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.

https://www.irs.gov/credits-deductions/filing-season-2021-child-tax-credit-frequently-asked-question...

[davidk99]

That's my problem too. I understand company does not want people to steal info so you are limiting ability to see 1040 after you pay. But I have the same problem with the child credit. In one spot the app says I qualify for $3000 credit. $1500 I received and now I should get the rest. But Turbo shows only the tax refund and I do not want to pay for tax return if it's not accurate. And I cannot check line 28 ort line 35a because Turbo will not show it to me. And to pay the high rate just to find out if the app is making an error... well, I don't want that either.

[xmasbaby0]

@davidk99 You are mistaken.  You can see your 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.

[davidk99]

I wish I were mistaken. It clearly says in your instruction:

• Preview your entire return: Select Print Center and then Print, Save, or Preview This Year's Return (you may be asked to register or pay first).

It's not register OR pay. If you do not pay you do not see it. It will take you to the billing billing page

[DoninGA]

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@davidk99 wrote:

I wish I were mistaken. It clearly says in your instruction:

• Preview your entire return: Select Print Center and then Print, Save, or Preview This Year's Return (you may be asked to register or pay first).

It's not register OR pay. If you do not pay you do not see it. It will take you to the billing billing page

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That instruction is only if you want to view or print your Complete tax return which includes all forms, schedules.  If that is what you want to do then you will have to pay for the TurboTax account you are using if the 2021 tax return has not been filed.

You can also look at the Form 1040 only without paying by using the instructions -

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

[davidk99]

Mea culpa. I see now what you meant. But I still have the same underline problem. When I was putting tax together Turbo said I should get child tax credit $3000 but now it shows what I received during the last half of the year 2021 which was $1500 and there is nothing about getting $1500. Same problem like the OP. And I don't want to purchase this tax return till I clarify why such a discrepancy. And it is definitely not because of high income. My AGI is $60.5k

[davidk99]

I finally found it. Thanks. It did not give me the answer I am looking for. During the process of filling out the tax forms Turbo told me I am supposed to get $3000 child tax credit and last year total was $1500. I expected to get $1500 on this return just like the original poster. So what am I doing wrong when even this app said I am supposed to get it. And in the 1040 preview they don't have the form 8812 to see how that is calculated. I don't have high income. My AGI is $60.5K. So what am I doing wrong?

[Vanessa A]

If you look at line 28 on your return, you should see the other $1,500, which is the amount that is included in your refund calculation.

You can view your 1040 by clicking the following:

• Tax Tools
• Tools
• View Tax Summary
• Preview My 1040

[davidk99]

Yes. That's correct. But just like the OP I am looking for the other $1500. Even Turbo said I am entitled to $3000. So just curious. Where is the other $1500? 

[DoninGA]

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@davidk99 wrote:

Yes. That's correct. But just like the OP I am looking for the other $1500. Even Turbo said I am entitled to $3000. So just curious. Where is the other $1500? 

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You do not receive the $1,500 as a separate refund.  It is a refundable tax credit reported on the Form1040 Line 28.  The credit is included with your other tax payments.  The total of your taxes (Line 24) is subtracted from your total tax payments (Line 33) and any overpayment is your federal tax refund (Line 34)

[Vanessa A]

To clarify, how much are you getting on line 28?