IRS claims Schedule 8812 line 5 incorrectly calculated

[NCperson]

look at the "line 5" worksheet in the instructions for Form 8812 (it's on page 4)

there is a 'phaseout' of the $3000/ $3600 CTC benefit that kicks in at $150,000 and brings you back to the $2000 benefit that previously existed. 

https://www.irs.gov/pub/irs-pdf/i1040s8.pdf

[fatherOfWine]

Could it be, that line 9 in your example has been calculated incorrectly?

It looks like you calculated it using this formula:"Line 5 Worksheet".Line3 - "Line 5 Worksheet".Line8

which would translated into:6000 - 150000 = -144000.

But you switched(I understand why, at first I did same thing) numbers:150000 - 6000 = 144000

But. Instructions stated:Subtract line 8 from Schedule 8812, line 3

Which, it seems to me, implies, that 1st number should come from line 3 of "Schedule 8812" form itself, not "Line 5 Worksheet" line 3. Which would get you different numbers in the formula above. Let's say you have in line 3 of "Schedule 8812" form following value: 100000. Then calculations would look like that: 100000 - 150000 = -50000. So in your example last 4 lines would look like this:

9 - 0

10 - 0

11 - 0

12 - 6000

If in line 3 of "Schedule 8812" form would contain following value: 160000. Then calculations would look like that: 160000 - 150000 = 10000. So in your example last 4 lines would look like this:

9 - 10000

10 - 500

11 - 500

12 - 5500

Is it possible, that IRS is wrong here?!?

[NCperson]

@fatherOfWine - What is occuring is that if you file MFJ, for example, and your AGI exceeds $150,000, the CTC credit of $3600 / $3000 is reduced by $500 for every $10,000 of income (or part thereof) that exceeds $150,000, until the CTC is reduced to $2,000 per child. 

[timscotttennis]

My schedule 8812 seems incorrect.  I did the worksheet by hand and got $6,000 instead of $9,000 they put on my form.

1	0
2	9000
3	9000
4	6000
5	3000
6	12500
7	3000
8	150000
9	0
10	0
11	3000
12	6000

[DoninGA]

---

@timscotttennis wrote:

My schedule 8812 seems incorrect.  I did the worksheet by hand and got $6,000 instead of $9,000 they put on my form.

1	0
2	9000
3	9000
4	6000
5	3000
6	12500
7	3000
8	150000
9	0
10	0
11	3000
12	6000

---

You made a mistake. 

For Line 11 you are to enter the Smaller of Line 7 or Line 10.  Line 11 should be 0.  Line 12 is 9000.

[Steven Grossman]

If your income is over $ 400,000 what is the phase out calculation.

[NCperson]

Q C4. How does the first phaseout reduce the 2021 Child Tax Credit to $2,000 per child? (added June ...

A4. The Child Tax Credit begins to be reduced to $2,000 per child if your modified AGI in 2021 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.

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 is applicable to you.

Q C5. How does the second phaseout reduce the remaining $2,000 Child Tax Credit? (added June 14, 202...

A5. The Child Tax Credit won’t begin to be reduced below $2,000 per child until your modified AGI in 2021 exceeds:

• $400,000 if married and filing a joint return; or
• $200,000 for all other filing statuses.

The second 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 is applicable to you.