Hello,
I understand more details maybe required but let's start with following numbers.
In Turbotax 2018, toward the end, where it shows "Let's Review Your Numbers", shows "How We Calculate Your Federal Refund".
And lists following,
Your taxable income $161,179
Federal Credits We Found For you $5,000
Federal Taxes You Owe
$19,358
Federal Taxes You've Paid, Plus Certain Credits $18,664 <<----- this number is also in Box 2 in my W2 (Federal income tax withheld with married, federal exemptions of 4)
And the math is,
And $18,664 - $19,358
Turbotax 2018 shows i have $5,000 child tax credit.
So, why isn't $5,000 applied to -$694 to reduce my federal tax due to $0 ?
What am i overlooking about how the child tax credit works?
Is the federal tax i've paid (withheld) somehow includes (portion) of child tax credit?
Thanks much.
I suspect the $5,000 has already been reduced to obtain the "taxes you owe' of $19, 358.
Assuming the $161, 179 was all ordinary income (no dividends or capital gains), the tax would be $25, 433. Reduce that by $5,000 and we are closing in on $19,358.
in forms view,. look on Form 1040, line 12a. Is the tax credit listed there?
I suspect the $5,000 has already been reduced to obtain the "taxes you owe' of $19, 358.
Assuming the $161, 179 was all ordinary income (no dividends or capital gains), the tax would be $25, 433. Reduce that by $5,000 and we are closing in on $19,358.
in forms view,. look on Form 1040, line 12a. Is the tax credit listed there?