How come i was taxed after i entered my advance child care tax credit

[xmasbaby0]

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.

And…..Ignore that “refund monitor.”  The software STARTS OFF by giving you the full amount of CTC.   When you enter the amounts from your letter, the software reconciles the amount you received with the amount you can still get IF you are eligible to get the other half.     You are NOT losing any of the credit; you are not being taxed on the credit.  Don’t get confused by the reconciled amount.   You got some of it already—-now you get the rest.

 If you received the advance payment and are NOT eligible to get the other half, then it will not show up on line 28.  (Such as in some cases where the wrong parent got the advance payments, etc.)

That “refund monitor” should not be taken seriously until every last morsel of your data has been entered.

[DoninGA]

Total eligible child tax credits less the advance child credits equals the total child tax credits entered on your tax return Line 28.

Look at you tax return if you have taxes owed.  If Line 24 total Tax Liability is greater than Line 33 total tax payments and credits you will have taxes owed on Line 37

You can view your Form 1040 at any time using the online editions. 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.

[Bsch4477]

Do you mean your advanced child tax credit?  When you enter that prepayment it is deducted from your calculated total 2021 child tax credit. 

[JamesG1]

Your refund changed because you are:

• First, given full credit for the Child Tax Credit, then
• Second, the benefit of the credit was reduced by the amount of advance payments reported.

In the software , TurboTax computes that you qualify for the Child Tax Credit and gives you immediate credit for the total amount of the Child Tax Credit. 

You are able to view the Child Tax Credit on line 28 of the Federal 1040 under Tax Tools / Tools / View Tax Summary / Preview my 1040.

Report the Advance Child Tax Credit payments received under Federal / Deductions & Credits / Your tax breaks / Advance payments, Child and Other Dependent Tax Credits at the screen Tell us about any Advance Child Tax Credit payments.

• In box 1 report the amount of the advance payments. 
• In box 2 report the number of qualifying children listed on your IRS Letter 6419, not the number of qualifying children you are reporting on your 2021 Federal 1040 tax return.

TurboTax then reduces the Child Tax Credit by the amount of the advance payments and posts the final amount again on line 28 of the Federal 1040.

You may again view this under Tax Tools / Tools / View Tax Summary / Preview my 1040.