My Child Tax Credit is only showing $2000, but per the new COVID stimulus additions, I should be receiving up to $3600. Why is this not the case?

[AngBHarris]

I meet all the criteria for the full $3600 credit.  Is this an issue within Turbo Tax itself?

[Hal_Al]

The new (expanded) Child tax credit ($3000; $3600 for kids under 6) is effective for 2021. There is a provision for advanced monthly payments  being made in 2021. The payments will come from the IRS, similar to the stimulus payments. The details of how and when are yet to be worked out, but  starting in July has been mentioned.

Getting the expanded child tax credit has nothing to do with filing your 2020 tax return. Whether you already filed, file now or file later, the additional money will not be part of your 2020 tax refund.

[PattiF]

The Child Tax Credit from the American Rescue Plan is not connected with your tax return.

The plan is for eligible people to receive monthly installments of $250 or $300 a month to start in July.

[Rpard]

Per the IRS website:

Important changes to the Child Tax Credit helped many families get advance payments of the credit:

• Half the total credit amount was paid in advance monthly payments in 2021.
• You claim the other half when you file your 2021 income tax return.

I’m still trying to figure out why it’s not calculating correctly as well.

[xmasbaby0]

@Rpard The software and tax forms need to update for the CTC.  In January you are going to receive a letter 6419 from the IRS that shows the amount of advance CTC you received.   Enter that information carefully --- and watch line 28 of your Form 1040.   That is the line that shows your CTC for 2021.

[camoliver]

I received the letter and also qualify for the 3600, but Turbo Tax is still only showing 2000. Is there an additional form to complete or do you know if Turbo Tax plans to update their form with the correct CTC?

Thanks in advance for any help!

[xmasbaby0]

@camoliver 

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.

Q C2. Can my Child Tax Credit amount be reduced based on the amount of my 2021 income? (added June 1...

A2. Yes. The Child Tax Credit phases out in two different steps based on your modified adjusted gross income (AGI) in 2021.

The first phaseout can reduce the Child Tax Credit to $2,000 per child.

• That is, the first phaseout step can reduce only the $1,600 increase for qualifying children ages 5 and under, and the $1,000 increase for qualifying children ages 6 through 17, at the end of 2021.

The second phaseout can reduce the remaining Child Tax Credit below $2,000 per child.

For additional information on the amounts of modified AGI that reduce the 2021 Child Tax Credit, see Q C4 and Q C5, below.

Q C4. How does the first phaseout reduce the 2021 Child Tax Credit to $2,000 per child? (added June ...

A4. The Child Tax Credit begins to be reduced to $2,000 per child if your modified AGI in 2021 exceeds:

• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
• $112,500 if filing as head of household; or
• $75,000 if you are a single filer or are married and filing a separate return.

The first phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.