8812 Line 5 Calculation Error!!

[215F4]

I have 4 kids, 2 under 6. The 8812 worksheet calculates a differnt value than what Turbo Tax entered on form 8812!

Schedule 8812 line 1 and 3 is $126,538. 4a is 4, 4b is 2, 4c is 2.  But 5 is an ERROR at $13,200.

The correct number should be $12,000.

Here's why:
The 8812 worksheet says for line

1. 8812 4b x $3600 = $7,200

2. 8812 4c x $3,000 = $6,000

3. (1) + (2) = $13,200

4. 8812 4a x $2,000 = $8,000

5. (3) - (4) = $5,200.
6. Enter an amount (married filing jointly = $12,500). = $12,500.

7. smaller of line 5 or 6 = $5,200

8. Enter amount for filing status ($150,000)

9. Subtract 8 from 3, round up = $24,000

10. Mulitply 9 by .05 = $1,200

11. Enter smaller 7 or 10 = $5,200

12. Subtract line 11 from line 3 (this should be line 5 on sch 8812) = $12,000

[JohnW152 · Accepted solution]

The Form 8812 computation by the TurboTax program appears to be correct.

Where you’re going wrong is on Line 9 of the Line 5 worksheet in 2021 Instructions for Schedule 8812.  

Line 9 says, “Subtract line 8 [of the Line 5 worksheet] from Schedule 8812, line 3.

If line 8 is $150,000, and line 3 of Schedule 8812 is $126,538, then line 9 is a negative number, and line 9 says that if zero or less, enter zero.

A zero on line 9 of the worksheet means that line 10 of the worksheet – “Multiply line 9 by 5% (0.05)” – is zero.

That makes line 11 of the worksheet – “Enter the smaller of line 7 or line 10” – zero, and line 12, which is carried over to line 5 of Schedule 8812, $13,200.

[dellender]

I don't follow. I just told Turbotax I have 2 kids, both under 5 years old. It tells me I'm getting back $2466 in refund, then the IRS tells me something screwed up and I'm only getting $766. I entered the correct info, but it looks like Turbotax messed up something in its software. 

[DJK4]

I just received a letter also that I owe $ also.  I have a 14 year old and an 18 year old.  Just filled out the information in TurboTax and filed like I normally do with TurboTax.  Never had any problems before.  

[NCperson]

@DJK4 @215F4 - look on Line 28 of your Form 1040. 

What was supposed to occur is the Child tax credit is calculated as $3600 for each child under 6 plus $3000 for each child aged 6-17 LESS what you received from the IRS monthly from July to December, 2021 (there is a further adjustment if you income exceeds $400,000 but I'll leave that part alone for now)

If you didn't enter the amount received accurately, it results in the wrong number on Line 28 - THAT is what the IRS probably adjusted, 

[DJK4]

Thank you.  I had some medical issues in July and never noticed the $160+ IRS funds that were being deposited into my bank account for the last 6 months.  Appears IRS just started doing it in July.  I never received a response from the IRS when I asked why both my wife and I received letters in Dec "Letter 6419" stating each one of us received $500 AdvCTC.  That is the $1000 they want back plus interest.