Where is the rest of my child tax credit?

[mdntskye]

With the new child tax guidelines, my family should be getting 6,600 tax credit for my 3 and 8 year old.   We are under 150,000 AGI.  Combined, my husband and I got 3300 in advanced child credit payments from July-December.  

At the end of the deductions section where you compare 2020 to 2021, it shows deduction of 4000 for 2020 Child and other dependent tax credit however it says only 3300 for 2021.  

Where is the other 3300 tax credit?  It is not showing up in my taxes currently as I'm inputting information.

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Here is the statement from the hyperlink in the application:

What’s new with the Child Tax Credit?

Child Tax Credit

In 2021, The American Rescue Plan expanded the Child Tax Credit—here are the details:

• The amount for kids under 6 went from $2,000 to $3,600.
• The amount for kids ages 6-16 went from $2,000 to $3,000.
• 17-year-olds were previously past the cut-off, but are now eligible for a credit of $3,000.

In addition, the entire credit is fully refundable for 2021. This means eligible families can get it, even if they don’t owe federal income taxes.

Advance Child Tax Credit payments

In 2021, many families received advance payments on their Child Tax Credit. These monthly payments let eligible recipients get part of their credit upfront, instead of waiting until they file taxes.

In May 2021, the IRS sent out a letter letting families know they'd begin receiving advance payments in July. The letter also provided instructions for opting out of advance payments.

Most eligible families received about one-half of their tax credit through advance payments, and will claim the remaining half of their credit when they file this year's return.

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Where is the other 3300 tax credit?

[JamesG1 · Accepted solution]

Are you able to view the computations that the software made for the Child Tax Credit? 

Line 12 of the Federal Schedule 8812 should compute the full $6,600.  Line 28 of the Federal 1040 reports the refundable amount after deducting the $3,300 in advance payments.

The full amount of the Child Tax Credit is not reported on the 2021 1040 Federal tax return, only the net amount after applying the advance payments.

To view Federal 1040 line 28, go to Tax Tools / Tools / View Tax Summary / Preview my 1040.

In your case, Line 12 of Federal Schedule 8812 should report your full Child Tax Credit. and Line 28 of the Federal 1040 should report $3,300.

See also this TurboTax Help.

[VolvoGirl]

Isn't it on 1040 line 28?   How much is there?  That's not the advance you already got but just the remaining amount.  The total credit or the advance does not show up on your tax return.

Did you enter the advance amount you did get?  Then the rest should be on line 28 if you qualify like if your income isn't over the max.  Oh and your total refund isn't necessarily the amount of the credit.   It either adds to your refund or reduces a tax due.

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...

[mdntskye]

Thank you!  I found the right amounts on those forms.

[APLUS1]

What happens if someone doesn't qualify for the advanced payments and the EIC due to residency, how can one use the PYEI for the ACTC like was done in 2020? There was a check-off on Schedule 8812 on 2020 which doesn't exist on 2021?

[Vanessa A]

If you don't qualify due to residency, you simply cannot get the credit. 

The rule to allow you to use the prior years earned income does not change your ability to claim the credit if you do not qualify for the credit for other reasons such as residency criteria not being met.

The prior year earned income was used to calculate the EIC not the Child Tax Credit.  It is still allowed to be used for the EIC.  For the child tax credit you cannot claim the credit if you were not a resident of the US for more than 6 months. 

[APLUS1]

This wasn't the case in 2020. One was able to claim the PYEI on form 8812 regardless of residency. Isn't this related of the same American Rescue Plan?

[Vanessa A]

For 2021,Schedule 8812 does not allow you to use prior years income. The credit is less based on income for 2021. The credit is based on the number of kids you have with income limits.  If you are over the income limits you simply cannot claim the credit.  Since there was no lower income threshold to qualify, there is no reason to allow someone to use the higher income of a past year to calculate the credit. If your income is $1,000 or $50,000, you would get $3,000 per child 6-17 or $3,600 per child under 6.

[ClaudetteC11]

Where is the rest of my child credit 

[NCperson]

@ClaudetteC11 

if you are due more child tax credit it should appear on line 28 of Form 1040

otherwise, can you prvoide more detail on why you think there is an issue? I'll try to help