You're not getting the Child Tax Credit. $500 is the "Other dependent credit" for dependents who do not qualify for the CTC, usually because they are too old (18 for 2021, 17 in earlier years).
There are 4 possible reasons; you aren’t getting the Child Tax credit (CTC).
- You’ve entered something wrong. In the personal Info section, for the dependent, you must select answers that indicate that he/she is your dependent child. If the child was born during the year, say he/she lived with you all year (note: TurboTax changed how this section is done two years ago, you may need to go thru the interview again or even delete your dependent and start over). If the child was with you for 6 months and 1 day, you need to mark that the child was with you 7 months. The CTC is not an automatic $2000, per child. It is income dependent. If you haven't entered your income yet, the CTC will not show.
- Your child may be too old (over 17). You can still claim your child, as a dependent. What you can't claim is the Child tax credit. This comes as a big surprise to many parents the year their child turns 18. A child over age 17 no longer qualifies for the Child Tax credit (CTC). Although a child can still be a student dependent through age 23, and a qualifying child for EIC, the Child Tax Credit expires the year they turn 18 and you no longer get the $3000 CTC. Instead you will get the non-refundable (up to) $500 Other Dependent Credit.
- Your income is too high. The Child Tax Credit (CTC) is phased out at higher incomes
- You are the custodial parent and the non-custodial parent is claiming the dependent this year. The CTC goes with the dependency, even though the custodial parent still gets the Earned Income Credit, Dependent care credit and Head of Household.
To get a 'second opinion' on-line direct from IRS, try https://www.irs.gov/uac/is-my-child-a-qualifying-child-for-the-child-tax-credit
