Hello! I have 4 children. I am receiving LESS than I should for the Child Tax Credit. I have 2 under 6 and 2 under 17. Does anyone know why I wouldn’t receive for all?

[xmasbaby0]

We cannot see what you are receiving and you have not told us.    The amounts you receive are determined by how old the child will be at the END of 2021----if one of them is turning 6 in 2021 you get the lower amount.

https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-t...

[jhineline86]

‼️EDIT‼️
My younger children is 9 months (turns 1 in 2021). My other is 4 years ( turns 5 in 2021) .  My other children are 9 and 12 years old . 

I know I’m receiving $800 because I checked the IRS site. I’m still short $300. I’m assuming it’s because they didn’t put our 9 month old who was born in October of 2020. 

[xmasbaby0]

Okay----but we still do not know how much you are getting or why you think it is wrong since you are not giving us the amount.

[macuser_22]

You probably do  not have a high enough income to qualify for the full amount (or your income is too high and the credit phases out.)

For the child tax credit of $2,000 per child.

The child must have been no older than 16 at the end of 2020.

The amount of child tax credit you can receive is limited by your taxable income (1040 line 15)
If your taxable income is zero, then you are not eligible for any child tax credit.

However, if you do not qualify for the Child Tax Credit, and if your earned income is greater than $2,500, you might be eligible for the Additional Child Tax credit. That amount is 15% of earned income greater then $2,500 up to a maximum of $1,400.

Too high of an income will reduce or eliminate the CTC also.
Married Filing Joint - $400,000
Single, Head of Household, or Married Filing Separate-- $200,000

The child tax credit will be reported on lone 19 on the 1040 form. Additional Child tax credit on line 28 on the 1040 form.

[Hal_Al]

The new (expanded) Child tax credit ($3000; $3600 for kids under 6) is effective for 2021. 

Getting the expanded child tax credit has nothing to do with filing your 2020 tax return. The additional money will not be part of your 2020 tax refund.

 The 2020 child tax credit  (CTC) is  limited to your tax liability. The CTC is a non-refundable credit and can only reduce your income tax to 0, It can not help you beyond eliminating your tax liability. But, if you have more than $2500 of earned income, some or all of it is usually given back to you thru the "Additional Child tax credit". That is, part of the CTC may be on line 28 of form 1040 (2020 version) instead of line 19 (lines 18b and 13a in 2019).   The  ACTC is calculated on form 8812 and  is basically 15% of your earned income over $2500. The ACTC is a maximum of $1400 per child (not $2000).

[xmasbaby0]

I think we need for you to clarify first which tax year you are talking about.   Are you saying your child tax credit was not as much as you expected for your 2020 tax return?    Or are you talking about the advance child tax credit monthly payments that are supposed to start in a couple of days?   

[jhineline86]

Oh I apologize!! I’m talking about the advance coming up. For the tax year 2020

[jhineline86]

I’m only receiving $800

[xmasbaby0]

And....from what source did you get that amount?   How do you know it is $800?   Has your 2020 return that claimed the baby been fully processed yet?   And----is it possible that your income is high enough for your amount to phase out?

You may receive half of the Child Tax Credit for each child in equal payments each month for the remainder of 2021. Payments will start in July.

• For each qualifying child under age 6, you will receive up to $1,800 in advance, generally paid in six monthly payments of $300.
• For each qualifying child age 6 through 17, you will receive up to $1,500 in advance, generally paid in six monthly payments of $250.

These advance payment amounts begin to be reduced if your modified AGI exceeds:

• $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.

[rjs]

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@jhineline86 wrote:

I have 2 under 6 and 2 under 17.

My younger children is 9 months (turns 1 in 2021). My other is 5years ( turns 6 in 2021) .  My other children are 9 and 12 years old 

---

As xmasbaby0 said above, the credit is based on the child's age at the end of 2021. So the one that turns 6 in 2021 counts as 6 years old, and only qualifies for the lower credit. You have only 1 child under 6, and 3 children ages 6 through 17.

[jhineline86]

I checked the IRS website. I also made a mistake. I’ll still have 2 under 6 at the end of 2021 and 2 over 6 years at the end of 2021. 

im assuming they didn’t but my youngest on the child tax advance. He was claimed on our 2020 taxes 

[xmasbaby0]

The portal to enter how many children you have, etc. should be functional by August.  I suspect the first round of these payments will get off to a rocky start and that it will take patience until they get it sorted out.

IRS link

https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

See Manage Payments 

(Another thing----will anyone turn 18 before the end of 2021?)

[jhineline86]

No. My children won’t be 18 for years and years 

[Opus 17]

I think the bottom line is this:

1. The IRS is so backlogged, you are lucky to get any advance payment at all.  

2. The IRS has promised to create a web site where you can update your children, and enroll or un-enroll from the advance payments, but the site only partly works.  If you find your children are not listed correctly, you might be able to update it in a couple months even if you can't update it now.

https://www.irs.gov/credits-deductions/child-tax-credit-update-portal

3. The advance payments are part of a credit that will be on your 2021 tax return.  If you don't get the advance payments, or don't get the right amount, it will all be reconciled on your tax return.  You aren't being cheated out of any money if the advance payment amount is not correct, it just means it will be added to your tax refund instead.

The advance payments don't change how much you get, it just changes when you get it.