2021 Additional Child Tax Credit disallowed when Turbotax Said I was entitled to it

[egg1]

2021 Turbo tax program calculated a $6,000 Additional Child Care Tax Credit but IRS came back and disallowed $4,000 of it

[Anonymous_]

You will probably have to contact Support for this issue.

What is the TurboTax phone number? (intuit.com)

[egg1]

Thanks for the response.   Did you hear of anyone else experiencing this issue? 

[Anonymous_]

I have not, but then I am simply a volunteer on this board.

[xmasbaby0]

Did you receive the monthly advance child tax credit payments between July 2021 and December 2021?  Did you enter the amounts for that from letter(s) 6419 when you prepared your 2021 tax return?   If you did not enter the advance payments, the IRS caught that mistake and reduced your refund.   

TurboTax does not get any information from the IRS after you file your tax return, so no one at TT knows why your refund was less.

If you received monthly child tax credit payments of $250 or $300 per month between July and December of 2021, then you got letter 6419 from the IRS, and you were required to enter the amount of the advance payments.   Only the remaining amount of the CTC should have been on line 28 of your Form 1040.   And....if you filed a joint return then they sent those letters to both of you.  The amounts from each letter were supposed to be entered.

The IRS will send you a letter that explains why your refund was reduced or why you owe more.   Meanwhile it might help you to check your online IRS account.   If you filed a joint return check the accounts for each spouse.

https://www.irs.gov/payments/your-online-account

If you need to trace a payment that the IRS says has been issued to you, mail or fax a completed IRS Form 3911, Taxpayer Statement Regarding Refund.

[egg1]

Hi- No advanced payments were received on this

[egg1]

Only thing their letter said was " Found an error on your 2021 Form 1040, which effects the following area of your Return:  Refundable Child Tax Credit" and disallowed $4,225 of the $6,000 Turbotax calculated

[xmasbaby0]

@egg1 Only the IRS can explain why they reduced your refund.  You asked if any others have had this experience----a LOT of people made mistakes with the child tax credit and/or the recovery rebate credit ---those mistakes often resulted in reduced refunds or more tax owed.  The IRS caught and corrected mistakes that were on lines 28 (additional child tax credit) or line 30 (recovery rebate credit.)  

You should receive a letter from the IRS in several weeks that explains why they reduced the refund.

[xmasbaby0]

To call the IRS:IRS:  800-829-1040  hours 7 AM - 7 PM local time Mon-Fri

Listen to each menu before making the selection.

First choose your language. Press 1 for English.

Then do NOT choose the first choice re: "Refund", or it will send you to an automated phone line.

Instead, press 2 for "personal income tax".

Then press 1 for "form, tax history, or payment".  

Then press 3 "for all other questions."

Then press 2 "for all other questions."  It should then transfer you to an agent.

[egg1]

Thanks.   I think I need to contact Intuit Support since I think this may be a program error.

[xmasbaby0]

@egg1 and...wait----your post is confusing.... I just re-read it.   In one sentence you mention the child CARE credit and then you call it the child tax credit.  Which credit are you asking about?  Those are two different things.  The childcare credit is a credit you get if you paid someone to take care of your child so you could work.   Did they disallow some of the credit you entered for paying someone to babysit your children?

The additional child tax credit would have been on line 28 of your tax return.   You can check your online account to see if the IRS says they sent you advance child tax credit payments.   

[egg1]

Hi. It was the additional child care credit on line 28. No advanced payments were received on this.

Thanks

Sent from my iPhone

[DoninGA]

---

@egg1 wrote:

Only thing their letter said was " Found an error on your 2021 Form 1040, which effects the following area of your Return:  Refundable Child Tax Credit" and disallowed $4,225 of the $6,000 Turbotax calculated

---

What were the ages of your children in 2021?  So we can see what amount of CTC you were eligible to receive.

[egg1]

Ages are 5, 9, 12

[DoninGA]

---

@egg1 wrote:

Ages are 5, 9, 12

---

Then something else is going on.  Based on the ages of the children in 2021 your Child Tax Credit on Line 28 of the Form 1040 should have been $9,600, assuming that your adjusted gross income on the 2022 tax return was less than $400,000 if filing as Married Filing Jointly or less than $200,000 for all other filing status'.