Hello I had a question about my child credit I don’t think I got the right amount

[xmasbaby0]

CHILD TAX CREDIT

There was lots of hype in the news about the new $2000 Child Tax Credit when the tax law changed for 2018 and beyond.    Unfortunately, some people do not yet understand that it does not mean they will automatically receive $2000 per child just for filing a tax return.

Do not assume your refund will include $2000 per child for child tax credits.  It does not work that way.  The CTC is used first to reduce your tax liability to zero. After that, there is a refundable portion —up to $1400 — called the Additional Child Tax Credit that is calculated based on the amount of income you earned.  You do not necessarily get the maximum amount.  You get 15% of the amount of income earned above $2500--UP to the maximum amount possible.

If your child turned 17 in 2019, even on the last day of 2019, you do not get the child tax credit.  There are no exceptions to the rule.  You can still claim your child as a dependent.

Your child must have a Social Security number to get the CTC. 

If your child was born in 2019 you need to say the child lived with you for the WHOLE year.

If your child lived with you for less than half the year you cannot get CTC.

If you did not earn at least $2500 you cannot receive the child tax credit.  Beyond that amount the CTC you receive is affected by your tax liability and the amount you earned.  You might not get the full $2000 of CTC.

The child tax credit is reduced by $50 for every $1000 of AGI over these limits:

Married filing jointly                $400,000    (CTC disappears at $440,000)

Single, Head of Household, Married Filing Separately or qualifying widower               $200,000  (CTC disappears at $240,000)

Look at your 2019 tax return to see the credits you received:

Child tax credit line 12a

Additional Child Tax Credit line 17b   (schedule 8812)

Credit for Other Dependents line 12a

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit

https://ttlc.intuit.com/questions/3029430-why-is-my-child-tax-credit-smaller-this-year

https://ttlc.intuit.com/questions/4505689-why-am-i-getting-the-credit-for-other-dependents-instead-o...

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-cre...

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-f...

[gregavaughan]

We didn’t get the correct amount. Shorted $100 each month in 2021 and now the TurboTax software isn’t giving us credit for what we are owed  for the remaining amount and not correcting the error on our payments either….how do we fix this? I don’t want to pay $160+ talk talk to a tax advisor just to answer this question 

[xmasbaby0]

@gregavaughan When the program is fully updated for the child tax credit you will be able to enter the amount of CTC monthly payments you have received and then you will be able to reconcile the amount you should still receive on your 2021 tax return.   There are still a LOT of things that have to be updated in the 2021 software, so please be patient.   You will not be able to file your tax return until late January/early February so you have plenty of time.  And returns that are getting child tax credit will not receive refunds until the end of February/ early March at best due to the PATH act.