Having Problems with Child Tax Credit

[JamesG1]

@Srtech

Are you allowing for advance payments that may have been received from July through December 2021?

The full amount of the Child Tax Credit is not reported on the 2021 1040 Federal tax return, only the net amount after applying the advance payments.  In 2020, the full amount of the Child Tax Credit was reported on the 1040 Federal tax return.

Are you able to view the computation that the software made for the actual credit?

If you can view the entire 2021 1040 Federal tax return at Tax Tools / Print Center, you will see: 

• Line 12 of Federal Schedule 8812 which computes the total Child Tax Credit, and
• Line 28 of the Federal 1040 which reports the refundable amount. 

To view Federal 1040 line 28, go to Tax Tools / Tools / View Tax Summary / Preview my 1040.

See also this TurboTax Help.

[VolvoGirl]

@Srtech   Yes your 1040 is right.  You got $3,300 Advance during the year.  You get the other half 3,300 on line 28 (which goes to 32).  It either adds to your refund or reduces a tax due.  You don't get anything on line 19 this year since you got the Advance.   This year you got a total of 6,600 instead of the 4,000 last year.   If you had not already got the  3,300  advance your refund would have been that much higher.  

[Srtech]

Thanks. I see Tax withholding  was reduced this year, so credit went into cover that due.

[DMarkM1]

Yes. The refundable tax credit will be used to help offset your taxes. So if your withholding covered less of your tax bill this year, the refundable child tax credit will help make up the difference. 

[angcbarnes]

Did you complete your taxes or try somewhere else?? I'm not understanding what is going on either... I have a 15 & 16 yr old sons that I have claimed since birth,  from my understanding I should receive 6000 CTC.. ? I recieved the advance of 3000, so shouldn't I get the other half , 3000???  Am I wrong? Anyone ever find a answer with this??!! 

[angcbarnes]

Hi, I'm confused & having the same problem although I dont think it has said anything about me paying back but.. I should receive 6000 for 2 kids, I received 3000 during the advanced TC & now it's saying I'm not eligible for the CTC?? Shouldn't I be eligible for the other 3000? How did this work out for you?? 

[krestep]

I did my taxes on 1040.com and got a refund rather than having to pay.  Nobody on here seems to understand, or wants to admit, that TT has their formula wrong.  

[RaifH]

Yes, if you meet the other eligibility requirements, your 15 and 16-year-old sons would qualify for the other $3,000 of Child Tax Credit. 

There are a couple of possibilities why you are not getting the Child Tax Credit that you expect. One possibility is that your combined income is too high to receive the full Child Tax Credit. The thresholds are as follows:

• $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 applies to you.

Another possibility may be that one of your children is not entered into the system correctly, and is therefore not triggering the Child Tax Credit. For each child in the Add a Dependent screens: 

1. Ensure that every child is marked for having lived with you for 6 months or more and that all that time was in the U.S.
2. Mark No to Did your child pay for more than half of their living expenses and other support?
3. When you enter your child's Social Security number, ensure that the box marked "Not valid for employment" is printed on your child's Social Security card is not checked.

Finally, you may want to check that the amount you received from July through December as advanced payments is entered correctly and matches what the IRS reported to you on Letter 6419.

1. In your TurboTax return search for Child Tax Credit and Continue.
2. Answer the question on the Let's start with where you spent the most time in 2021 screen and Continue.
3. On the Tell us about any advance Child Tax Credit payments screen, answer Yes, enter the amount from your letter in the Tell us about any advance Child Tax Credit payments box, and Continue.
   1. If your spouse also received payments, be sure to enter that amount as well as a combined total for both of you.
4. Answer the questions on the following screens, confirm your amount on the Let's recheck your advance Child Tax Credit payments screen, and Continue.

@angcbarnes

[Torihubbard39]

My final refund was $8,607. Is that after they took the $3,000 CTC that I already received or will my refund be different?

[DoninGA]

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@Torihubbard39 wrote:

My final refund was $8,607. Is that after they took the $3,000 CTC that I already received or will my refund be different?

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The advance child tax credits you received in 2021 and reported as receiving on the 2021 tax return are not included in the federal tax refund.  Unless you did NOT report receiving the advance payments on the 2021 return, your refund will change and be delayed since the IRS will have to adjust your tax return.

[Vanessa A]

The $8,607 is after they account for the $3,000 you already received as long as your entered that amount on your return saying you did already receive it. 

If you did not enter it, the IRS will adjust your refund and reduce it by the $3,000 that you received but didn't enter on your return.

[babyt2012]

I completed my taxes and received my refund yesterday but not the rest of my child tax credit. The amount that was supposed to be refunded is on line 28. So what should I do now? I would have thought it would have been deposited altogether but since the turbotax bar say the specific amount of my refund from me working and not the rest of the child tax included with it I didn't get it. 

[DoninGA]

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@babyt2012  wrote:

I completed my taxes and received my refund yesterday but not the rest of my child tax credit. The amount that was supposed to be refunded is on line 28. So what should I do now? I would have thought it would have been deposited altogether but since the turbotax bar say the specific amount of my refund from me working and not the rest of the child tax included with it I didn't get it. 

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The Child Tax Credit is entered on your federal tax return Form 1040 on Line 28. It is added to your other tax payments, it is not a separate refund. Your Total taxes from Line 24 are subtracted from your Total tax payments on Line 33. If you have an overpayment then that is entered on Line 34 as your federal tax refund.

[VolvoGirl]

@babyt2012    Did the IRS actually reduce your refund and send less than the amount on line 35a?  If you got the full the amount on line 35a it included the Child Tax Credit on line 28.

[CaseyTX]

Same!! I’m in holding position trying to find out what to do. We are due $3600.