Why does 2 child only equal to 1000 for both?

[SweetieJean]

Are you asking about the Child Tax Credit?  The stimulus? How old were the children on 12/31/2020?

[Hal_Al]

If it's exactly $1000 ($500 each), that would indicate TurboTax has given you the Other Dependent Credit, rather than the Child Tax credit.  This usually  means the child is older than 16 or is not closely related to you. 

Otherwise: 

 There are 6 possible reasons; you aren’t getting the Child Tax credit (CTC). It’s usually #4:

1. You’ve entered something wrong. In the personal Info section, for the dependent, you must select answers that indicate that he/she is your dependent child. If the child was born during the year, say he/she lived with you all year (note: TurboTax changed how this section is done two years ago, you may need to go thru the interview again or even delete your dependent and start over). If the child was with you for 6 months and 1 day, you need to mark that the child was with you 7 months. The CTC is not an automatic $2000, per child. It is income dependent. If you haven't entered your income yet, the CTC will not show.
2. Your child may be  too old (over 16). You can still claim your child, as a dependent. What you can't claim is the Child tax credit. This comes as a big surprise to many parents the year their child turns 17. A child over age 16 no longer qualifies for the Child Tax credit (CTC). Although a child can still be a student dependent through age 23, and a qualifying child for EIC,  the Child Tax Credit expires the year they turn 17 and you no longer get the $2000 CTC. Instead you will get the non-refundable (up to) $500 Other Dependent Credit.
3. Your income is too high. The Child Tax Credit (CTC) is phased out at higher incomes starting at $400,000 for joint filers  ($200K single). You lose $50 for each $1000 (rounding up) your income is over that threshold.   

Previously it was $75,000 for single, head of household, and qualifying widow or widower filers; and $110,000 for joint filers.

4. Your income is too low.  The child tax credit  (CTC) is also 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).
5. You are the custodial parent and the non-custodial parent is claiming the dependent this year. The CTC goes with the dependency, even though the custodial parent still gets the Earned Income Credit, Dependent care credit and Head of Household.
   6. Another possibility is that part of your tax due is not regular income tax, but is self-employment tax (FICA), early distribution penalty or another type of additional tax, for which the CTC cannot be used.

To get a 'second opinion' on-line direct from IRS, try https://www.irs.gov/uac/is-my-child-a-qualifying-child-for-the-child-tax-credit

TT FAQ https://ttlc.intuit.com/questions/2625810-why-didn-t-i-get-the-child-tax-credit-or-why-is-it-less-th...

https://www.irs.gov/uac/Ten-Facts-about-the-Child-Tax-Credit

[deekindogg249]

One is 4 and the other just turned 2. Their deffinatly under 16 years old. Should be getting 2000 per child atleast?

[Hal_Al]

Q. "Should be getting 2000 per child at least?"

A.  No. See #4,  above.

The money you hear about people getting for just filing a tax return claiming kids requires them to  have some earned income (wages or self employment). Without earned income, they are not eligible for the "refundable" Earned Income Credit or Additional Child Tax Credit.  Both credits are calculated on the amount of earned income you have. No earned income means no "refund". A small amount of earned income means a small refund. The child tax credit does not "kick in" unless you have at least $2500 of earned income.

A child can be the “qualifying child” dependent of any close relative in the household. If you live with someone else, e.g. your parents, it may be better if they claim your child.

Instead, you could allow the non-custodial parent to claim the children.  Non-custodial parents are allowed to claim the child tax credit, but not the Earned income credit.

[deekindogg249]

So if my son is 2 and I'm his father. I only get 500. He has no income and I pay for everything for him? The 4 year old is alittle different. But still should get max for my son? Or am I wrong on that.

[Hal_Al]

Simple answer: Yes, you're wrong on that.

But, you simply haven't given us enough info to explain to you why you're wrong. 

"So if my son is 2 and I'm his father".  That's not enough info.  Where does the child live?  The fact that you mention his income indicates you've entered something wrong in TT.  It doesn't usually ask about the income of 2 year olds.  Where is the other parent?

"My 4 year old is a little different".  How? 

There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). Only a QC qualifies a taxpayer for the Earned Income Credit and the Child Tax Credit.  The fact that you're only getting $500 (The "other dependent" credit  amount) indicates that you have probably answered the questions in such a way that TT is only classifying them as qualifying relatives, and that's unusual. 

 A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:

1. He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled (under 17 for the child tax credit)
2. He did not provide more than 1/2 his own support. 
3. He lived with the parent  for more than half the year

Then there is a special rule in the case of divorced & separated (including never married) parents. The non-custodial parent can only claim the Child Tax Credit (no EIC) or Other Dependent credit.  You have to carefully answer the questions in the TT interview to indicate that the custodial parent has release the dependent to you.

[ColeenD3]

You would have encountered the Question, "We know Bobby is a kid, but we have to ask: Did he pay for most of his living expenses?

Let us know if Bobby is one of the few kids who pay for more than half of their living expenses. (These kids aren't considered dependents.)

That question would rule him out as a dependent all together. 

A Qualifying Relative is described below. Any answer that conforms to these rules would have gotten you the $500 each.

Qualifying Relative

You can claim a child, relative, friend, fiancé (etc.) as a dependent on your 2020 taxes as long as they meet all of the following requirements :

• You provided more than half of their financial support. More info
• They made less than $4,300 in gross income during 2020 unless they are a qualifying child.
• They live with you or they are related to you. (Your relative must live at your residence all year or be on the list of “relatives who do not live with you” in Publication 501.) 
• They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren't (or won't be) claimed as a dependent by someone else.
• They aren’t filing a joint return with their spouse.
• You are not being claimed as a dependent on someone else's return.