Total credit and Child Tax Credit

[Vt9]

Once I've finished inputting my info into Turbotax Dlx, I flipped over to the Form format and under the Tax History form, it listed the Total Credit as $0 while the previous years listed much different amount. What is the Total Credit included and why is it $0? 

I also have a question in regards to the Child Tax Credit. From the looks of it, once my children turns 17 then I can no longer receive this credit and even though I still have other deductions from mortgage, etc. my refund will be reduced by the amount of the Child Tax Credit, is that correct?

Thank you.

[DawnC]

The ''Tax Credits'' line on the Tax Summary does not include refundable credits.   The Child Tax Credit is a refundable credit.   You can verify the amount of your CTC by checking Lines 19 and 28 of your Form 1040.   Refundable credits, like the CTC are included with ''Total Payments'' when you view the Tax Summary page.    That line should be your withholding plus any refundable credits.   Non refundable tax credits such as Energy Credits or Education Credits will show up under ''Total Credits''.

For 2021, a child that was 17 on 12/31/21 qualifies for the Child Tax Credit.   In previous years, the child had to be under 17, but for 2021, the child has to be under 18.   Once the child turns 18, they do not qualify for the Child Tax Credit, but they would qualify for the $500 credit for the Other Dependent Credit.     You can look at the dependent section on your Form 1040 to see which credit your children are qualifying for -  See which box is checked in Column 4 - this will tell you what credit you are receiving.   

If something does not look right with your credits, review the Child Tax credit questions again before you file.  You can search for child tax credit and use the Jump to child tax credit at anytime to go there.    And those child related credits have nothing to do with your itemized deductions.   You can itemize or take the standard deduction and that won't depend on the number of dependents you have.   You can itemize with zero or ten dependents.   TurboTax will default to the highest deduction.   

Your refund will not be reduced by the Child Tax Credit - it can only add to your refund, not subtract from it.   

[Vt9]

Thank you. However, this doesn't explain why in the "Form" format of the Turbotax of the software under the Tax History which listed all the previous years' deductions, income, credits etc. it listed that this year's "Total Credits" as $0 while previous years' have an actual $ amount?

[KrisD15]

This year is an exception attributed to the "Advance Child Tax Credit Payments".

Normally the program would not force Form 8812 on a return that is not eligible for the Child Tax Credit. 

This year however, there may be people who received the advance payments, but are not eligible for the Child Tax Credit on their 2021 Tax Year return.  THEREFORE, the program is asking about this credit to ALL filers so that this answer is reported.

Since the program is generating Form 8812 and asking about the credit, it is also recording "0" if the credit is not being used on the 2021 Federal Return. 

[Charlotte13]

My Husband and i are over 70 filing 2021 taxes. we wonder if our taxes are right since we were getting back more han we put in.  With the child tax,  we would like you to please check our return again.  And explain to us how we get so much back. Thank you

[RobertB4444]

@Charlotte13  

You are probably better off having someone walk through the return with you to look at your entries so I recommend getting live expert help.

Here is a link to finding a TurboTax expert.

However, that requires upgrading your product which may be an expense you don't want.  In that case you can call an expert and ask questions over the phone.

Here is a link to the TurboTax Phone Number.