Child tax credit seems incorrect.

[lhe]

I have 3 kids and TurboTax is telling me I get a $6,500 Tax Credit for them. One of the kids was 17 until 30-May-2021.  I am thinking we should not claim this child as they do not qualify for the tax credit. None of the kids have paid for their living expenses if that matters.  But I think something is wrong with the calculations.

[xmasbaby0]

You do not get CTC for a child who turned 18 at any time in 2021.   You only get it for children who were YOUNGER than 18 at the end of 2021.

That does not mean you cannot claim your child.   You can still get the $500 credit for other dependents for claiming the child who is 18.  You can still get the 3rd EIP for claiming him  (if you did not already receive it) and you still get EIC if you qualify.   And you get to enter his medical expenses if you itemize.

IRS interview to help determine who can be claimed:

https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent

https://ttlc.intuit.com/questions/3113432-who-can-i-claim-as-my-dependent  

CREDIT FOR OTHER DEPENDENTS

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-cre...

[rjs]

So the $6,500 total credit is correct. You get the $3,000 Child Tax Credit for each child who was 6 through 17 at the end of 2021, plus the $500 Credit for Other Dependents for the child who was over 17 at the end of 2021.

[lhe]

Ok the child turned 18 May 30 2021 since he was born 2003. But Turbo Tax is showing a 6500$ credit for 3 kids. I only have 3 living with me. Maybe a bug?

There are no medical expenses he has been healthy despite everything going on in this world.

[lhe]

The child in question turned 18 in may of 2021. So I am getting only 500$ from what was said. But TurboTax is telling me 2500. Seems like a bug in TT unless I am not understanding something here. 

Oddly I have entered the two young siblings first as I was considering not claiming him so he could claim himself on his taxes. 

[JulieS]

The amount of $6500 for your dependents is correct. You get $3000 each for your two children between the age of 6 and 17. Your child who turned 18 counts for an Other Dependent credit of $500. 

If you received Advance Child Tax Credit during 2021, your total credit will be reduced by the amount you already received.

You can not choose to not claim your 18 year old, but it will cost you $500. Your child can't claim themselves if they did not provide at least half of their own support. 

[Opus 17]

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@lhe wrote:

The child in question turned 18 in may of 2021. So I am getting only 500$ from what was said. But TurboTax is telling me 2500. Seems like a bug in TT unless I am not understanding something here. 

Oddly I have entered the two young siblings first as I was considering not claiming him so he could claim himself on his taxes. 

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I don't understand "2500".  $6500 of total credit = $3000 per child under 17 + $500 for the 18-year old.  Everything is correct.

Under the tax laws, your child must answer "I can be claimed as a dependent" if he can be claimed, even if you decide not to claim him.  He can be claimed if he does not earn more than half his total financial support (room, board, medical care, travel, clothing, entertainment, tuition).  If he answers "no one else can claim me" to get a credit, but does not support himself, that's tax fraud. 

[lhe]

Good to know all that. I have as stuck on the 2000$ number and not that it has increased to 3000$

[seasjay]

The "Learn More" tax guidance in the desktop turbo tax premier edition (maybe others) is incorrect. It still shows $2000 per child. It should state $3600 for each qualifying child who has not reached age 6 by the end of 2021, or $3,000 for each qualifying child age 6 through 17 at the end of 2021, $500 nonrefundable credit for other dependents.

This is copied directly from the 2021 turbotax guidance (again, it is NOT correct):

"The Child Tax Credit is a tax break that can benefit people with children under the age of 17. You can get up to $2,000 for each child you claim. That's money in your pocket.

The Other Dependent Tax Credit is a new $500 tax break for people with dependents who are 17 or older, not necessarily related to them, or have an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number. Same deal here - you'll get $500 for each dependent you claim."

[Opus 17]

@seasjay 

The program calculation is correct.  While I agree that updating the "learn more" pages are important, and I can report it, the programmers will probably view it as a lower priority than finishing some of the late tax law changes. 

[Opus 17]

@seasjay 

Can you confirm where exactly the learn more link is located that you are talking about?  The desktop Mac version has this link which is correct.  Windows might have a different version, but the programs are compiled from the same source code.  Is your program fully updated?

[JillS56]

Please clarify your question?

TurboTax is calculating the CTC correctly.  The "Learn More" is a link to the tax rule.   For 2021 only is the $3,000/$3,600 is in effect.    Yes, I agree that the "Learn More" link should be updated, but this is just a helpful link and is not a priority when there are so many forms that still need to be updated.

If you have a specific question you would like us to answer, please respond with your question and we would be happy to answer your question.

[lhe]

I figured it out as an HIE.

Better known as 

Human 

Interface 

Error.

I was thinking old numbers did not realize the updated the amount had increased.

-.-

lhe

[lhe]

I got it now.  I was hung up on the old amounts.

-.-

lhe