If my MAGI was 207k and I file a jt return with 2 kids age 10 and 14 why is turbo tax saying I am not entitled to any of the child tax credit? I thought 400k was zero?

[xmasbaby0]

The  2021 child tax credit is phased out at higher incomes

Q C4. How does the first phaseout reduce the 2021 Child Tax Credit to $2,000 per child? (added June ...

A4. 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.

Q C5. How does the second phaseout reduce the remaining $2,000 Child Tax Credit? (added June 14, 202...

A5. 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.

[DanaB27]

Yes, if if your modified adjusted gross income (AGI) is more than $150,000 if you're Married Filing Jointly then the Child Tax Credit will be reduced.  Your Child Tax Credit will be $0 if your MAGI is over $400,000. Please see What is the Child Tax Credit? more details.

Please verify how you answered the question  "Did you live in the U.S. for more than six months in 2021?" screen. 

1. Click on the "Search" on the top and type "Child tax credit"
2. Click on “Jump to Child Tax Credit”

[Edited 4/15/2022 | 8:56am PST]

@djs0522 

[djs0522]

i did answer "yes" to living in the US for more than 6 months during the year. Still cannot figure out why the software is indicating we are not entitled to any of the tax credit when the MAGI is 206k.

[djs0522]

might just be a typo but you asked this question:

Did you live in the U.S. for more than six months in 2020?" screen. 

the only question I saw regarding the residency question was:

Was your main home located in the U.S. for 6 or more months during 2021? (These months don't need to be consecutive.)

[JamesG1]

Perhaps, you qualify for the 'first phaseout' and any advance payments that you received offset the Child Tax Credit received?

If you can view the entire 2021 1040 Federal tax return at Tax Tools / Print Center, you will see:

• Line 12 of Federal Schedule 8812 which computes the total Child Tax Credit, and
• Line 28 of the Federal 1040 which reports the refundable amount.

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.

The Child Tax Credit phases out in two different steps based on your modified adjusted gross income (AGI) in 2021.

The first phaseout can reduce the Child Tax Credit to $2,000 per child as follows:

• The first phaseout step can reduce only the $1,600 increase for qualifying children ages 5 and under, and 
• The $1,000 increase for qualifying children ages 6 through 17, at the end of 2021.

 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/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 second phaseout can reduce the remaining Child Tax Credit below $2,000 per child.

@djs0522