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The "refund monitor" starts off by giving your all of the stimulus money and all of the child tax credit because the software does not know yet that you received stimulus money or that you received some advance child tax credit payments. That gets reconciled later.
That "refund monitor" changes as you enter information. That is normal. And you cannot take it seriously until you enter ALL of your information---even though it is so tempting to believe that the highest amount is the "right" refund.
Federal>Deductions and Credits>You and Your Family>Child Tax Credit
The IRS is sending out letter 6419 to you. It will show the amount of advance child tax credit that you received during 2021. Enter the information from that letter carefully.
The remaining amount of CTC that you can receive will show up on line 28 of your 2021 Form 1040.
PREVIEW 1040
https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing
Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.
NOTE: The CTC is indeed a “credit” that can be applied toward any tax liability that you would otherwise have to pay as “tax due” to the IRS.
I got to the end where I file. I received $1500 in advance child tax payments in 2021. I entered that information where it asked for it. My return at the end (total) is just under $1500. That's just my normal return from my income from my job---the quick math will tell you that I'm obviously NOT getting the other half of it on this tax return. It is not adding the other $1500 (the other half of the $3,000) to it but if I go back and say that I did NOT get the advance payments, it adds the $1500 to my return. Seems to me to be a software glitch. How does it know I'm owed the other $1500 (and not the full $3,000) when I enter that I didn't receive advanced payments? If I file without claiming the advanced payments, I'm sure there will be issues down the road with that. All I know is that I'm owed the other $1500 and your software seems to think I don't.
@systemflatline02 wrote:
I got to the end where I file. I received $1500 in advance child tax payments in 2021. I entered that information where it asked for it. My return at the end (total) is just under $1500. That's just my normal return from my income from my job---the quick math will tell you that I'm obviously NOT getting the other half of it on this tax return. It is not adding the other $1500 (the other half of the $3,000) to it but if I go back and say that I did NOT get the advance payments, it adds the $1500 to my return. Seems to me to be a software glitch. How does it know I'm owed the other $1500 (and not the full $3,000) when I enter that I didn't receive advanced payments? If I file without claiming the advanced payments, I'm sure there will be issues down the road with that. All I know is that I'm owed the other $1500 and your software seems to think I don't.
Look at your Form 1040 Line 28 for the child tax credit. That amount is included in your tax refund or it has reduced the amount of taxes owed.
Click on Tax Tools on the left side of the online program screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.
If you think you can just remove the advance in the program to increase your refund you will be disappointed when the IRS catches your error (months from now) and reduces the refund like the program is already doing.
And let me see if I can shed some light on this situation that many folks will find themselves in this year when they are disappointed in the bottom line. Here is an example for just one child ...
Last year the credit was $2000 of which only $1400 could be refunded after taxes were paid down.
This year the credit is $3000 (or $3600) of which you got 1/2 up front leaving just $1500 (or $1800) for the credit on the return to pay down your tax bill.
So last year the credit on the return was $2000 and this year it is only $1500(or $1800) ... you are short $500 (or $200) on the return. You are thinking the credit went up so my refund should be more but remember you got some in advance. Review the 2020 & 2021 returns side by side to see this in action.
You need to look at the entries from line 24 to 31 on your tax return form 1040. Then compare them to the same lines on last year's tax return. On these lines you will see your Total Tax (line 24) and the deductions from that tax (lines 25 to 32.) That is where you will find the difference between this year and last year, and that may explain why you owe taxes this year or have a lessor refund than expected.
Nope, all of my information was correct. And if you re-read what I replied with, you will see that I said that I DID NOT want to skip that part and claim I didn't get it BECAUSE it will cause issues. I was simply explaining that your software is glitched. When I enter that I received $1500 through advance credits and it doesn't add the other $1500 to it like it should. Is that other $1500 lost to the void? Do the goblins get that other half? However, when I go back and say I never received the advanced payments, it all the sudden added $1500 to my return.
It is no longer a concern to me. I just got done filing on TaxAct and my refund is actually correct. I've been using Turbotax for the last 4 or 5 years and this is the 2nd time I've had an issue getting what I'm actually owed. The first issue I had was they claimed I wasn't getting much of a return back at all (less than $500 which I KNEW was incorrect but I filed anyways since I worked in 2 different states and assumed that was the reasoning) so the IRS ended up sending me the other $3500 I was owed since your software somehow missed all of that. And what do you know, it almost happened again. If I was to finish filing here at Turbotax, my return was going to be $1450. My refund is actually $3680.
I don't know what's going on with your software but I can only imagine how many people you are screwing over by not getting them what they are actually owed. The IRS shouldn't look at an e-file and go "oh they were shorted $3500" when your "top of the line software" is supposed to MAXIMIZE MY REFUND. Oh, that's right, lol, I didn't opt for the $200 for your experts to file it for me.
I'll never use this service ever again.
The program starts by giving you the full $3000 credit and then when you entered the $1500 you got in advance the refund in the REFUND METER would have simply been reduced by that amount. If you look at the form 1040 line 28 you would have seen the $1500 credit. If you used a different program and you got a different bottom line then you made an entry error in one of them because if you made the exact same entries in both programs then you would have gotten the exact same bottom line.
I used the same W2 with the same exact information that I used here on TurboTax, so no, I did not enter anything in error in the other program. Assume all you want but the 'bottom line' here is that the software I use (well, used to use) here at TurboTax seems to be unreliable and I no longer trust it.
I already stated (but I will again state this for you since you must have misunderstood) that I had a past issue similar to this in the fact that I put all my information in and it claimed I was getting a very minimal refund (literally less than $500). I chalked it up to the fact that I worked in one state for a few months then got a new job and worked in another state the rest of the year. Stupidly, I filed anyways because at the time I need the money badly and even though it was way under what I should have gotten, it was better than nothing. Suddenly, 3 months after I got that return, I get a check from the IRS for almost $3500. I called the IRS and confirmed the authenticity of the check as it seemed odd that the IRS would give me such a large amount back after already receiving my return 3 months prior. The agent could not verify at the time so he advised me to not cash the check for 30 days just to be safe, which I obliged. I actually waited 60 days, and then I called the IRS back and talked to a different agent and explained the whole situation again because it still didn't sit right with me. This agent informed me that it was in fact a check the IRS issued to cover an under-payment when I filed my taxes for the 2020 tax year. He then went on to tell me that they have had several cases involving tax prep software (he did not give names of said tax software but come on.. use common sense here there's like 2 main tax services and this is one of them) with similar issues in not awarding full refunds and that money then just basically sits in limbo and goes nowhere until the IRS investigates and reviews where the money is supposed to go.
I'm not saying Turbotax is skimming off of refunds, I'm simply stating that the software has flaws. I understand that all software can have flaws but to cut a tax return literally in half for no real reason seems to be a pretty major flaw that should be fixed.
FYI the software does not add $3,000 and then remove $1,500 because at no point did the software list the amount I was getting back for the CTC. It did not start at $3,000 and remove half (as you claim it does) after inputting the data for the CTC--it was never in my REFUND METER amount at all. I started at $1450 and it ended at $1450, including federal and state. Just so you know, TaxAct DOES do that. I watched it start at $3000 then the next page asks for the advanced credit and the amount and once I put in that I already got $1500 of it, it then reduced it by $1500 and showed me that I was getting the other $1500 back from CTC.
You can sit here and argue with me all you want but I'm telling you the software has issues and this is now the 2nd time I've experienced an issue while using this software that almost screwed me out of my rightfully earned tax return. And just for the record, after I posted this question, I went back and re-did my entire return (I cleared all the info out and started over) and it again did the same exact thing.
I had a similar issue. I have three dependents that qualify for the CTC. I received advanced payments for one of them (totaling $1500). My full CTC should've been $9.000 minus the $1,500 I already received, leaving me with a CTC of $7,500. Turbo Tax only gave me a CTC of $5,000. I ran my information on Tax Slayer and Tax Act and both sites gave me the full $7,500 credit. Turbo Tax definitely has some flaws that need worked out.
I was concerned about this as well since it only showed $3000 for my 2 kids. Go into forms on Turbotax and find Schedule 8812 and you'll see why the number is $3000 instead of $6000. So it is correct if I'm understanding correctly, but annoying when Turbotax shows the side-by-side comparison from last year and only includes the $3000, rather than the $6000 which would be the total of the advance payments and the $3000 applied when filing. Very confusing.
The program is telling you what is on the 1040.
if you received advance payments, those will not be on your 1040, only the remaining amount as a credit will be.
I only claimed and received credit for 1/3 of my CTC. Yet, Turbo Tax was calculating my return as if i had received 2/3 of the CTC. I contacted Turbo Tax and they acknowledged there was a discrepancy in their softwares calculations and have since opened an investigation. I’m also looking into previous years returns as I recall having a similar issue that went unresolved.
Did you receive advance payments for your two children? I did not receive advance payments for all three of my children. I only received it for one.
Check to see that you did not accidentally check the box under your dependent child's SSN. OR check other interview questions to make sure they are answered correctly. A wrong checkbox could potentially disqualify them from being your qualifying children.
See the screenshot below:
@omariec85
I’ve done all that. I went through every page of my return with a Turbo Tax representative who also double checked my work and that is how we determined there was in fact a glitch in the system. It has been escalated to the appropriate department.
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