Is anybody else wondereing why the child tax credit repayment protection did not apply on these forms ?

[chiquitabolling]

Q H6. If I qualify for repayment protection, how much repayment relief will I qualify for? (added June 14, 2021)
 
A6. If you qualify for repayment protection, the amount of your tax liability from excess advance Child Tax Credit payments is reduced by up to the full repayment protection amount. The full repayment protection amount equals $2,000, multiplied by the following:

The number of qualifying children that the IRS took into account in determining the IRS’s initial estimate of your advance Child Tax Credit payments, minus
The number of qualifying children properly taken into account in determining the allowed Child Tax Credit amount on your 2021 tax return.
Example: You properly claimed three qualifying children on your 2020 tax return, but claim only one qualifying child on your 2021 tax return. You can receive up to $4,000 in repayment protection (that is, $2,000 for each excess qualifying child) if you qualify.

You will be able to apply the full repayment protection amount of $2,000 for each excess qualifying child if your modified adjusted gross income (AGI) is at or below the following amounts based on the filing status on your 2021 tax return:

$60,000 if you are married and filing a joint return or if filing as a qualifying widow or widower

[KrisD15]

For clarification, 

Are you liable for PAYING BACK any Advanced Payments?

There are taxpayers who will not be eligible for the Child Tax Credit on their 2021 tax return AND are required to return any Advance Payments they received. 

These Taxpayers, and only these Taxpayers, may be eligible for the "Repayment Protection". 

For any Taxpayer that IS eligible for the Child Tax Credit, the advanced payment amount is subtracted from the 2021 credit and whatever is left is added to that Taxpayer's return. 

[AmeliesUncle]

If you have further questions, it would help to know (1) how many children you are claiming as a dependent on your tax return, (2) how many children the Advance payment was made for, and (3) the amount of the Advance payment.

[mtneyes]

I am in the same situation. I claimed both of my daughters on my 2020 taxes, therefore received the advanced child tax credit for both of them but I don’t get to claim one of them on my 2021 taxes so it shows me owing just over $2k. I am just over the allowed $50,000 agi so I should still be able to qualify for some of the $2000 repayment protection. 
can anyone help with this scenario? 
I am not seeing anywhere in TurboTax that shows the repayment protection adjustment. 
thank you 

[AmeliesUncle]

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@mtneyes wrote:

I claimed both of my daughters on my 2020 taxes, therefore received the advanced child tax credit for both of them but I don’t get to claim one of them on my 2021 taxes 

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You had claimed two kids.  So did you receive $3000 in Advance payments?

If so, there is nothing to adjust.  A child is worth $3000 on your tax return, and you already received $3000.  So there is nothing to adjust.

[chiquitabolling]

I woud assume she is entitled to the other 1500 for the child she did claim, because the 1500 she recieved for the child she did not claim does not have to be payed back. She would not recieve the other 1500 for the child she did not claim.   Is this correct?

[chiquitabolling]

when I go the IRS website it states the qualifications. I fall under the qualifications. So I filed 3 children on my 2020 tax return. I recieved advancements for 3 children. I am suppose to recieve the other half for my 2 children on my 2021 return, which would be 3000 instead I'm recieving 1500, which means they are taking back the 1500 I recieved for the child I'm not claiming this year. How am I not paying it back? I am.

[chiquitabolling]

3 children advanced payment recieved for, 2 children filed on my 2021 taxes and 4500 recieved in advanced. its saying that I will be ony recieving 1500 for 2021 when I should recieve 3000, which means I'm paying back the 1500 overpayment that I should be protected from.

[DawnC]

If you are claiming two children, you child tax credit is $6000 (assuming they are ages 6-17).   You already received $4500, so the remaining credit of $1500 is what you are due.    You got the advance for all 3 children, but since you are only claiming 2, you are only due the $1500.   Whoever is claiming the 3rd child will be eligible for the full $3000 credit.   

You are not paying anything back.   You received $4500 of the $6000.   So, you are keeping the entire $4500 plus getting another $1500.

2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic H: Reconciling Your Advance Chil...

[KYJAX]

If you do qualify for the repayment protection. Where do you deduct that on your return? Or do i have to file a separate form 8812, after I e-file?

[xmasbaby0]

@KYJAX 

TurboTax calculates the Repayment Protection.  This determines if a person is required to repay the advance CTC.

What is Repayment Protection?

Repayment protection is an income-based program that reduces the amount of excess advance Child Tax Credit payments you have to repay.

Full repayment protection equals $2,000, multiplied by the following:

• The number of qualifying children that the IRS took into account when estimating your advance Child Tax Credit payments, minus
• The number of qualifying children you’re claiming on your 2021 tax return.

To be eligible for full repayment protection, your adjusted gross income (AGI) for the 2021 tax year must be at or below the following:

• $60,000 if you are married and filing a joint return or if filing as a qualifying widow or widower;
• $50,000 if you are filing as head of household; and
• $40,000 if you are a single filer or you are married and filing a separate return. 

 You won’t qualify for any repayment protection if your modified AGI is at or above the amounts listed below based on the filing status on your 2021 tax return.

• $120,000 if you are married and filing a joint return or if filing as a qualifying widow or widower;
• $100,000 if you are filing as head of household; and
• $80,000 if you are a single filer or are married and filing a separate return.

For information on the definition of modified AGI, see Topic C: Calculation of the 2021 Child Tax Credit. 

[Vanessa A]

TurboTax will automatically calculate the safe harbor amount on form 8812 and it will be included with your original return.  Form 8812 then flows to your 1040.  This calculation is done on part III of form 8812.  

[Aksus2012]

The issue is that it isn't calculating it. I'll try again but I highly doubt it will work as I've done multiple times. Unless there has been an update.

[xmasbaby0]

@Aksus2012

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.   Then it will calculate down to the refund you see on line 35a or the tax due on line 37.

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.

[Aksus2012]

Trust me I know. The actual issue is the repayment protection is for some reason not giving me my full 3600 (1800 each child) for my 2  children. It keeps taking away an extra 1500 out of that 3600 because I'm not claiming my nephew this year. I've read multiple documents from the IRS on schedule 8812 and the "Repayment Protection" is supposed to prevent this from happening. Something needs to be fixed.