☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Jan 31, 2022 1:19:37 PM

Is anyone else having issue with the child tax credit and it actually making them owe money instead of giving a credit? It says I'm getting 1500 but then I end up owning

I have restarted my taxes from scratch 3 times and every time, after I add the child tax credit I end up owing it all back.  I'm still within the income limits and my breakdown says I'm getting 1500 in credit but every time I add the information, it says I owe 1500 extra.  Is this a glitch?

0 1 282
1 Replies
Expert Alumni
Jan 31, 2022 1:40:59 PM

When you enter your personal and dependent information TurboTax calculates your Child Tax Credit (CTC).  Initially, TurboTax calculates your return as if you received the entire amount of CTC you were eligible to receive and no credit is applied.  You will need to enter the amount of CTC  you received, this will allow TurboTax to calculate any additional CTC you are entitled to and TurboTax will apply that credit to your tax return.

 

To enter the CTC you have received follow these steps:

  1. With TurboTax open select Deductions  & Credits.
  2. On the section Your tax breaks select edit on the line Advance payments, Child and Other Dependent Tax Credits.
  3. Follow the prompts to the page Tell us about any advance Child Tax Credit payments.
  4. Enter the amount of advanced CTC you received.
  5. Follow the prompts to the page Let's recheck your advance Child Tax Credit payments.
  6. Verify that the amount is correct.
  7. Follow the prompts until you are back on the page Your tax breaks where you will see the CTC being applied to your tax return.