Having Problems with Child Tax Credit

[MissVibe]

Thanks for the customer support info. Yeah I have no idea what's going on, I have $500 return coming to me if I don't add my kids, then I add my children and it shows I have to pay $2,500. As if I owe back the 3,000 they sent me last year. Very confusing.

[xmasbaby0]

We have not heard from anyone else with a similar problem.   I suspect you have entered something incorrectly.   Try deleting the kids from My Info and re-entering them.

[matt1richards]

I thought that I was having the exact same issue. Mathematically, I felt that it should show the full amount such as the $6,000 example cited above, with a $3,000 subtracted due to the early payments. Instead it's only showing the $3,000 as if that's all you qualify for so when you plug in what you already received it appears to cancel each other out. But then I tested it by indicating that I hadn't received any early payments  - and then the 1040 shows the full amount. So now I know that TurboTax is calculating correctly. Just a bit disappointing to see.

[morangegurl]

I am having the same issue. I understand it's a credit and I already receive half of it, but I feel like it's being calculated incorrectly. The first half, that I already received, should be on line 19 as a nonrefundable credit, meaning it should reduce my tax liability and the second half which I am due should be on line 28/32 as refundable credit that I should get the balance of after my tax liability is taken care of. This is not what is happening and I don't know how to fix it.

[VolvoGirl]

No the amount you already got should not show up on your 2021 return at all.  You already got that.  Only the missing amount you didn't get should be on line 28.  

Turbo Tax starts out giving you the full amount. So you might see a high refund. Then you enter what you already received so it subtracts it out. Check 1040 lines 19 and 28 and schedule 8812.

How to enter the Child Advance payments you got
https://ttlc.intuit.com/community/family-tax-credits-and-deductions/help/how-do-i-enter-my-advance-c...

[maschine]

Unfortunately, I think Turbotax is correct.  It starts with your maximum credit, then subtracts how much you got paid in advance.  That "stimulus" was really more like a loan - it wasn't free money.

If you look at the forms, how it works is this basically replaces the old child tax credit.  Worse, it subtracts after your tax liabilities - not before.  So if you're like me, you end up paying a penalty for not "paying" enough taxes (because they mailed me checks during the year, instead of deducting it from my liabilities).

So if you were expecting $6000 in credits, and you received $3000 last year, you only have a $3000 credit left this year instead of the $4000 credit you're used to (assuming 2 kids).   You're not getting the old credit + the "stimulus" added on top. That's kind of what it sounded like, but that's not reality.

Hopefully you're not stuck paying interest/penalties like me.  It's stupid because I literally would have been better off throwing those checks in the garbage instead of cashing them.  Worse, I didn't even spend them..   I just left them in the bank.  Now I have more forms to fill out, and I have to pay *more* than I would have otherwise.

[maschine]

morangegurl, That's what I thought too.  Unfortunately, no.  If you look at Schedule 8812, where the child tax credit is calculated - you don't get to put anything on line 19 in most cases.  That is why I have to pay a penalty as well, because the calculated total tax owed is now $4000 more than it would have been otherwise.

[xmasbaby0]

@maschine No, the stimulus was not a loan.   You are not repaying it or being taxed on it.   You are simply misinterpreting the way the calculations are done.  And---it is admittedly confusing to users.

The "refund monitor" starts off by giving your all of the stimulus money and all of the child tax credit because the software does not know yet that you received stimulus money or that you received some advance child tax credit payments.    That gets reconciled later.

That "refund monitor" changes as you enter information.      That is normal.   And you cannot take it seriously until you enter ALL of your information---even though it is so tempting to believe that the highest amount is the "right" refund.

[Gabriel_a95]

I had the same issue. Mine got deducted and i was under the impression we were supposed to receive the other half. I got so fed up and just gave up and filed it anyway. 

[mevaladez]

Mine is having issues calculating the correct amount as well. I should be receiving $4800 but isn't calculating that part. I have been online with a turbo tax representative for over 2 hours. She can't seem to figure it out. Asked me if I entered the Advanced child credit. I said yes that is why it went down by $4800 but shows I have less than $2000 for a refund which isn't any of the credit for the remaining $4800. I think there is something wrong in the way turbo tax calculation is set up.

[Gabriel_a95]

Turbo tax needs to get it together. Do you guys think the IRS will catch this error? I’m hoping they do because I filed mine even though the half amount I was supposed to receive got deducted. I also file taxes for my family so I want to prevent this on their taxes as well. So stressful! 

[pse224]

Yeah im having the same issues i think Turbo Tax needs to re look at the calculations. Before people submit them and have to amend there taxes to claim the other half. 

[xmasbaby0]

@pse224 @mtkendirli @Gabriel_a95 @mevaladez 

Look at line 28 of your Form 1040.   That is where you will see the "other half" of the child tax credit that you seem to think you are not getting.  The software puts it on line 28 and adds it to your refund.   

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.

The "refund monitor" starts off by giving your all of the stimulus money and all of the child tax credit because the software does not know yet that you received stimulus money or that you received some advance child tax credit payments.    That gets reconciled later.

That "refund monitor" changes as you enter information.      That is normal.   And you cannot take it seriously until you enter ALL of your information---even though it is so tempting to believe that the highest amount is the "right" refund.

Federal>Deductions and Credits>You and Your Family>Child Tax Credit

The IRS is sending out letter 6419 to you.  It will show the amount of advance child tax credit that you received during 2021.  Enter the information from that letter carefully.   

The remaining amount of CTC that you can receive will show up on line 28 of your 2021 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.

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.

[Tye99]

I am having the same issue. I tried it with turbid tax and H&R Block. The same thing happens 

[DoninGA]

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@Tye99 wrote:

I am having the same issue. I tried it with turbid tax and H&R Block. The same thing happens 

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What amount is entered on your federal tax return, Form 1040 Line 28?