joint filers Entering advance child tax credit

[sarahortwein]

I still don't get it. My wife and I have 4 eligible kids between the ages of 9 and 17. We both got letter 6419 showing we each received $3,000 between July and December, for a total of $6,000. My understanding was the "advanced" portion sent out between July and December was only the first half of what was owed--that we could expect the second half of the credit when we filed our 2021 taxes. In our case this would be another $6,000.  It even appeared that turbotax was including the remaining sum still owed to us in its "estimate." That is, until I actually entered these sums from letter 6419 in the section provided, which reduced my expected return by $6,000. What is going on here?

[Critter-3]

Correct ... the  credit  is   3000 x 4 kids = 12000

You got 1/2 the credit in advance  = $6000  ( per the IRS letters 3000 each)  and the other 1/2 of it is $6000 which should be on line 28 of the form 1040. 

IGNORE THE REFUND METER ....  the program gave you the full 12000 credit when you passed the MY INFO tab and then much later in the interview you are asked how much you got in advance so the credit was reduced by the 6000 advance at that time which confuses folks ... review the actual return.  

[sarahortwein]

That's what I thought. I don't see a way to preview the 2021 form prior to filing. Is this possible? When I go to tax tools, I can see my 2020 form...just not the 2021 yet. Also, why doesn't it show up in the return estimate? I'm worried about filing until I'm certain the remainder of our credit will be added.

[sarahortwein]

Sorry, I missed the second half of your response.

[Critter-3]

I added it late.

[Critter-3]

You can peek at only  the Federal form 1040 and the summary of the state info by going here:

1) lower- Left side of the screen...click to the left side of the "Tax Tools" text selection.
2)  then select "Tools"
3) then select "View Tax Summary" from the pop-up
4) then back to the left-side and "Preview 1040"

Then hit the "Back" on the left side to get back to your tax entries.

To view your entire return using the online editions (including the state) before you file, you will need to pay for your online account.

To pay the TurboTax online account fees by credit card, without completing the 2019 return at this time, click on Tax Tools >>> Tools  and then Print Center.  Then click on Print, save or preview this year's return.  On the next page, to pay by credit card, click Continue.  On the next screen it will ask if you want Audit Defense, if you do not want this option just click on the Continue button.  The next screen will ask for all your credit card information so you can pay for the account.

[sarahortwein]

I guess I'm still wondering if I have to go ahead and file to be able to look at those lines on the 1040? 

[Kzblewski]

Same! I thought I only received half the credit! I got $3000 for 2 kids (ages 8 & 14). Married filing jointly. Our income was nearly the same in 2020 & 2021. Why am I showing that I owe $83? 

[VolvoGirl]

Check that you got the other half on line 28.   It probably reduced a tax due you had.

You don't have to file to see all the forms.  Before filing,  You can preview the 1040 or print the whole return. 

https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...

[njhoudini]

So if I'm understanding this thread:

1. everyone with eligible children who is preparing their taxes has generally received half of the child tax credit that they are expecting.

2. once everyone enters the amounts received based on Letter 6419 received by each taxpayer, the estimated amount drops by the amount received eliminating the total child tax credit even though everyone has only received half of the "credit".

3. the "estimate" doesn't show the other half of the child tax credit until you pay or if you remove state from the return (then no fee due for simple returns) you should be able to see the remaining half of the child tax credit appear implying that the logic exists in the refund calculation, but won't be visible until you're at the point of reviewing your 1040's?

Something seems terrifically amiss with not presenting the estimated refund amount.  The software should calculate the total refund due ($3600/$3000 per child depending on age of child/income) and then reduce that amount by the total received in letter 6419, not start at half of the credit in the estimator and then reduce it to $0 with the accurate information entered.  This is not transparent.  It should be fixed as soon as possible.  I'm being asked for credit card info and it still presents a federal refund less the $3600 I'm still owed for 2 small kids (under 5) and meeting the income criteria.

[LeonardS]

When you enter your personal and dependent information TurboTax calculates your Child Tax Credit (CTC).  Initially, TurboTax calculates your return as if you received the entire amount of CTC you were eligible to receive and no credit is applied.  You will need to enter the amount of CTC  you received, this will allow TurboTax to calculate any additional CTC you are entitled to and TurboTax will apply that credit to your tax return.

To enter the CTC you have received follow these steps:

1. With TurboTax open select Deductions  & Credits.
2. On the section, Your tax breaks select edit on the line Advance payments, Child and Other Dependent Tax Credits.
3. Follow the prompts to the page Tell us about any advance Child Tax Credit payments.
4. Enter the amount of advanced CTC you received.
5. Follow the prompts to the page Let's recheck your advance Child Tax Credit payments.
6. Verify that the amount is correct.
7. Follow the prompts until you are back on the page Your tax breaks where you will see the CTC being applied to your tax return.

@njhoudini

[Critter-3]

First let me point out that the Refund-O-Meter is only correct once all your income and expenses have been entered and the program is fully operational. With each entry of income or expenses the meter will continue to vary as the program recalculates the return with each step you take.  If this annoys you then turn off the meter until the end.   

Next ... the program interview flow is  poorly designed  and it  will give you a false refund total early in the interview.   The program gives you 100% of the CTC and the third stimulus credit once you have completed the MY INFO tab early in the interview  and  then much   later in the deductions & Credits tab  you are asked how much of these credits you got in advance and then the credits are adjusted for the advance payments which will show as a reduced refund amount or an increase in the balance due.  

Same thing for the EIC … the program gives you the credit in the refund posted BEFORE  you get to the EIC portion of the interview.  At that point it asks you a couple of questions that could possibly REMOVE the credit already reflected in the refund posted  which is also a point of confusion for many. 

One day the programmers may  get this changed to more timely reflect the section you are working on as you work on it and not way in advance.  Users are not happy when they see the refund being reduced without a good explanation especially when the program says you can get $X as a credit and they see the refund either being reduced or not increased.

[njhoudini]

If the program were to give me 100% of the CTC from the beginning though, I would have been starting with a minimum of a $7200 CTC which should have been reduced by the $3600 that was paid in 2021, not starting at $3600 and seeing it reduce to $0 after providing my info.  I think this is the frustration that everyone is experiencing.  I have all of my income and expenses entered.  I'm pretty certain that were I to file today (I'm not because I'm waiting for more 1099's), I would have to file an amendment because Turbo Tax's calculations were off.  If anything, the app should not give me the impression that it is correct without explaining why it is assuming I have already received the full $7200 when it clearly is not the case.

I am sincerely hoping that Intuit recognizes that dozens of people reporting the issue here causes an employee to ping the development team to address the issue.  This is not a small error.  This is an error that is $1800/$1500 per child under 5.  I don't know what the credit is for older children, but I think this needs to be recognized as a serious issue.  If Intuit were to cause thousands of folks to incorrectly file, are they going to cover the amendment fees to make it right?  Fix it now so we don't have to worry about it.  The issue is not with the estimate in the Refund-O-Meter, the error is in what amount the CTC should start at per child and should not be reduced to $0 when parents are entering the amounts from the IRS letter.  As much as I'd prefer to remain using Turbo Tax, I can't if it won't recognize that I'm still owed another $3600 for the CTC.  That would just be silly.

[njhoudini]

@LeonardS and @Critter-3 , I want to thank you both for replying.

If I understand Letter 6419, "If you're eligible for the credit, file Schedule 8812 with your 2021 income tax return to claim your remaining credit (for a total amount of up to $3,600 per child under age 6 and $3,000 per child age 6 through 17)."  It clearly states I should be expecting a total of $7,200 (I have 2 children under age 6 times $3,600).

When I started my data entry this season, I saw my refund included the $3,600 above my federal and state tax refund amounts.  As soon as I entered the amounts in the letters that my wife and I received, my federal refund dropped by $3,600 which would imply that I'm not entitled to receive the remaining $3,600 out of $7,200 even though we are both under the modified adjusted gross income of $150,000 giving us the full CTC.

If the Refund-O-Meter were correct from the beginning, my refund should have assumed that I am due the entire $7,200 from the beginning and then get reduced based on the amounts from Box 1 on Letter 6419.  Hope this helps clarify what I and many others are seeing.  We have only received half of the CTC as designed by the payouts last year and Turbo Tax isn't accounting for the remaining amount that should come via our refunds.  I would bet my current refund on it!

[Re428]

I am in the situation as the other respondents.  I have two dependents which would qualify me for $6000 in CTC.  I already received $3000 in AvdCTC which was also indicated on my 6419.  Per IRS and TurboTax Help, I can claim the remaining $3000 when I file my taxes.  When I first started my taxes, the "Refund Meter" displayed $3500.  However, when I input the 6419 information, the meter immediately erased the $3000.  Also, on the "Tax Breaks" summary page, the CTC section only shows $3000 as well.  I am glad I am not the only one experiencing this and I really hope TurboTax is aware of this issue.