Yes----the 2021 software will not be released until sometime in November so we do not know yet how they will set up the screens for the child tax credit. But you can definitely expect questions to be asked about receiving the monthly payments, so be eagle-eyed for them when you do your return.
You will reconcile those payments on your 2021 tax return.
If you began to receive the monthly child tax credit payments in July, by the end of 2021 you will have received half of the 2021 child tax credit in advance. The other half will be included as a refundable amount on your 2021 tax return.
For example---if you have one child 6 or older you are now getting $250 per month--by December that is $1500. The total amount of the CTC for the child is $3000----so you will still get $1500 as a credit on your 2021 return.
Ok perfect, will the advance payment be on my page automatically or will I receive a form and I'll have to manually add it?
Thank you so much!
Gaelle
Not sure what you mean by "be on the page automatically"----TurboTax has no involvement in those payments so TT will not know if you received the child tax credit payments unless you tell the software that you received them. When you prepare your 2021 tax return be very careful to answer any quesitons about the CTC correctly.
Ok you responded to my question. I'm guessing that Turbo Tax will ask at some point: have you receive advance Child Tax credit and I will have to add the sum.
Thank you!
Gaelle
Yes----the 2021 software will not be released until sometime in November so we do not know yet how they will set up the screens for the child tax credit. But you can definitely expect questions to be asked about receiving the monthly payments, so be eagle-eyed for them when you do your return.