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Toomer95
Level 1

Dependent Questions

Hey Turbo Tax! Thanks for taking time to answer some questions:

1. We received $2,800 last month and we are curious why? We thought that we had already received all the 'back pay' for our kiddos when it came to stimulus money. So we just want to know where this money came from.

2. The Child tax credit is $300 per child/per month correct? How long are they doing this for? From now until December? Or even longer? And this money will just be 'deducted' from our overall tax return next year? So we are just getting that money a little earlier right? 

3. Would there be any way to see a rough number of what taxes will look like for next year? Like how much that we need to withhold on our paychecks, to make sure that we don't have to end up paying during tax season?

 

Again Thanks for all you do!

4 Replies
conniem123
Employee Tax Expert

Dependent Questions

Happy to answer your questions!

 

1) The deposit you received last month could be an adjustment to your filed return.  Any stimulus money not received would have been reported as a Recovery Rebate Credit on your 2020 tax return, Form 1040 line 30.  Take a look at your 2020 tax return, and see if you had an amount on line 30, and was that included in the refund on line 35a that you originally received. 

You may request a Record of Account Transcript to see any changes the IRS has made to result in the additional refund.

 

https://www.irs.gov/individuals/get-transcript

 

2) The monthly advance payments of the 2021 Child Tax Credit are up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and above. Instead of getting this credit as part of your refund in 2022, these payments are sent in advance and represent a portion of the tax year 2021 Child Tax Credit.  

 

Monthly payments will begin on July 15, 2021, and will be sent out through direct deposit, paper check, or debit cards.  

IRS payments schedule:   

  • July 15
  • August 13 
  • September 15
  • October 15
  • November 15
  • December 15

When you file your 2021 tax return during the 2022 tax filing season, you will need to compare:

  1. The total amount of the advance Child Tax Credit payments that you received during 2021; with
  2. The amount of the Child Tax Credit that you can properly claim on your 2021 tax return.

Excess Child Tax Credit Amount: If the amount of your Child Tax Credit exceeds the total amount of your advance Child Tax Credit payments, you can claim the remaining amount of your Child Tax Credit on your 2021 tax return.

Excess Advance Child Tax Credit Payment Amount: If you receive a total amount of advance Child Tax Credit payments that exceeds the amount of Child Tax Credit that you can properly claim on your 2021 tax year, you may need to repay to the IRS some or all of that excess payment.

In January 2022, the IRS will send you Letter 6419 to provide the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. Please keep this letter regarding your advance Child Tax Credit payments with your tax records. You may need to refer to this letter when you file your 2021 tax return during the 2022 tax filing season.

 

https://ttlc.intuit.com/community/family-tax-credits-and-deductions/help/what-are-the-new-child-tax-...

 

3) It is always a great idea to review your finances and taxes throughout the year!  We have a great tool to assist you!

https://turbotax.intuit.com/tax-tools/

 

Happy to help you and thank you for choosing TurboTax!

 

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mfields2
Employee Tax Expert

Dependent Questions

The $2,800 sounds like two $1,400 payments from the 3rd stimulus payments.  You can check this by logging in to the IRS website under the "Get My Tax Record" function, and looking at your Account Record to see what payments have been distributed to you.  The link is here:  https://www.irs.gov/individuals/get-transcript

 

The advance child tax credit amount per month depends on the age of the child.  If the child is age 5 or under, it will be $300 per child.  If the child is between 6 and 17, the amount will be $250 per month per child.  The amounts you receive are truly an "advance", in that they will be deducted from the amount you otherwise would be able to claim as child tax credit on your 2021 tax return.

 

The IRS says that the payments will continue through December 2021.  

 

To determine your tax situation next year, you can use our "TaxCaster" application, here:  https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

 

 

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Toomer95
Level 1

Dependent Questions

So we have 2 kids that are under the age of 5, and we only received $500, should we talk to someone about trying to receive the full $600? or could that possibly be added to the tax credit during the tax season? 

conniem123
Employee Tax Expert

Dependent Questions

This advance payments you receive will be reconciled against your credit on your 2021 tax return.  It appears you will have excess child tax credit amount to claim on your 2021 tax return.

 

When you file your 2021 tax return during the 2022 tax filing season, you will need to compare:

  1. The total amount of the advance Child Tax Credit payments that you received during 2021; with
  2. The amount of the Child Tax Credit that you can properly claim on your 2021 tax return.

Excess Child Tax Credit Amount: If the amount of your Child Tax Credit exceeds the total amount of your advance Child Tax Credit payments, you can claim the remaining amount of your Child Tax Credit on your 2021 tax return.

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