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lillulu323
Level 2

Child tax credit question

Hello!

I had a baby in august 2020. My husband and I self prepared our taxes for this past year and we were not eligible for the child tax credit as the baby technically had not lived with us for more than half of 2020. We did receive $500 for the “other dependent credit” but now I’m not sure if that is correct. I was hoping/assuming we would receive the recent monthly child tax credit July 15 but we did not. Did we do something wrong when we filed for 2020? Will we receive the credit when we file for 2021? I am so confused, any help will be appreciated! 

3 Replies
Nick-K-EA
Employee Tax Expert

Child tax credit question

For tax purposes, a child that is born during the year is considered to have lived with you for the entire year, so long as he lived with you from birth through the end of the year. You actually should amend your 2020 return to get the additional credit to which you are entitled.

 

The bad news is, that's not going to happen in time to fix anything that is preventing you from receiving the monthly advance payments. But you will definitely get the credit on your 2021 return.

Nick K, EA
EMoney83
Level 1

Child tax credit question

Our family had a similar issue, with our child born in December of 2020.  We marked “1month” as the time the child had been living with us in 2020, and so only received the $500 tax credit, and did not receive the $300 monthly credit in July.   However, we have recently been informed that we should have selected “12 months” for any child born in 2020.  So we submitted an amendment to our 2020 taxes, making this change, and now will be receiving an additional refund.  

Hopefully the above helps for your situation,  but I also have an additional question.  Since we amended our 2020 tax return to include our dependent child born in 2020, will we automatically start receiving the $300 monthly credit going forward, and for the credit that we should have received in July?  Or do we need to take additional action with the IRS to communicate this update to receive the monthly credit?  Or,  will the monthly payments instead be given in a lump sum refund when we file our 2021 taxes?

 

thanks for any help.  

lillulu323
Level 2

Child tax credit question

Thank you Nick. I’m trying to amend using the app but having difficulty. How do I actually change from the ‘other dependent tax credit’ to the child tax credit and put how long my child lived with me? (12 months as you said) I’m not even worried about getting the advance payments, just want to be sure I’m set when I file for 2021.

thanks again !

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