Turbox Tax Only Showing $200 in Additional Child Tax Credits

Here is one I do not understand and could use some help on:

My wife and I each have a letter from the IRS showing we each received $900 in 2021 Advanced Child Tax Credits ($1,800 total).

When i go through the Deductions & Credits section of Turbotax and input this information, my calculation sheet only shows an Additional Child Tax Credit of $200.

What i don't understand is why my Additional Child Tax Credit is not $1,800 ( = $3,600 - $1,800 in Advanced Payments).

Can anyone help explain this? My daughter was born in 2019 if that helps.

477

1 Best answer

Level 15

Apr 16, 2022 4:39:07 PM

So the amount you are seeing on your federal tax return Form 1040 on Line 28 is only $200?

Do you have a high 2021 Adjusted Gross Income?

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.

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.

Level 15

Apr 16, 2022 4:39:07 PM

So the amount you are seeing on your federal tax return Form 1040 on Line 28 is only $200?

Do you have a high 2021 Adjusted Gross Income?

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.

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.

Level 1

Apr 16, 2022 4:46:31 PM

Hi and thank you for the response.

AGI was $184,060 and my Taxible income was $158,900 as married filing jointly.

Didnt realize there was a reduction on the tax credit based on AGI.

Looks like we got dropped down to a $2000 max CTC.

Thanks for explaining.

Why sign in to the Community?

Turbox Tax Only Showing $200 in Additional Child Tax Credits