How do we get the proper tax credit for a child born this year and we did not get the advance tax credit.

[samkessler]

We received the advance payment for our children born before 2021.  Does turbotax automatically figure this into the child tax credit or is there something we need to do for the third child?

[xmasbaby0]

Do you mean you have a child who was born in 2021?

Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number. If your child was born in 2021make sure you said he lived with you the whole year.  There is an oddly worded question that asks if the child paid over half their own support.  Say NO to that question.

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.

[RaifH]

Yes, TurboTax will automatically calculate the missing Child Tax Credit for your newborn. If you are eligible for additional money from the third stimulus payment, TurboTax will add that as well. To add your child, please do the following:

1. Open or continue your return in TurboTax, if you aren't already in it.

2. Select My Info in the left navigation.

3. Select the Add a dependent button to add your child.

4. When we ask how many months your newborn lived with you, always answer The whole year, even if your baby was born on the last day of 2021.  

After adding your child, you can follow these steps to claim the Child Tax Credit: 

1. You should have received Letter 6419 from the IRS which states the amount of Advanced Child Tax Credit you have already received for your other children. If you do not have that letter, you can get the information from the IRS website. 

2. In your TurboTax return search for Child Tax Credit and Continue.

3. Answer the question on the Let's start with where you spent the most time in 2021 screen and Continue.

4. On the Tell us about any advance Child Tax Credit payments screen, answer Yes, enter the amount from your letter in the Tell us about any advance Child Tax Credit payments box, and Continue.

   1. If your spouse also received payments, be sure to enter that amount as well as a combined total for both of you.

5. Answer the questions on the following screens, confirm your amount on the Let's recheck your advance Child Tax Credit payments screen, and Continue.

Lastly, after entering the rest of your federal return, the TurboTax software will calculate if any additional stimulus is owed to you:

1. During the Federal Review, we’ll check if you meet eligibility requirements for the stimulus payment

2. If you meet the requirements, you'll see the Did you get a third stimulus? screen

3. Answer a few questions about any payments you've already received and then we'll let you know if the Recovery Rebate Credit applies