ACTC vs CTC

[rmatherne88]

This year the CTC has changed and is fully refundable. How will this effect the ACTC? My account shows my CTC as "additional child tax credit" but im being told that this year the CTC wont switch over to ACTC for most people. I am wondering this because it changes if my return will be held up in the path act law or not.

[xmasbaby0]

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.)

Yes----if you are getting the child tax credit you will wait because of the PATH act.

[rmatherne88]

That is where the confusion lies, because on form 8812 it isnt ACTC and the regular CTC is not supposed to be held up under the path law. 

[xmasbaby0]

It will be delayed for the PATH act.   And realistically, there are delays already predicted for 2021 refunds due to the IRS backlog, so do not expect a quick refund.   Be pleasantly surprised if your refund arrives sooner than end of February or early March.