Will 2021 turbotax support AdvCTC payments filing?

[manbeing]

Just received a letter from IRS that '2021 total Advance Child Tax Credit (AdvCTC) payments'

IRS asked me to keep this letter and will need to prepare my 2021 income tax return.

Just wanted to confirm Turbotax will support it this year?

[xmasbaby0 · Accepted solution]

Yes of course the TurboTax software will support the CTC.  There are updates needed so don't rush.

The flow of information is confusing some users when they are looking at the child tax credit.   SOME people received advance monthly payments —— some did not.   The software STARTS OUT giving you the full amount when you enter your qualified child dependents.   Later when you tell the software that you received some advance payments, the “refund” on the “refund meter” is adjusted so it looks like you just lost some credit.   No, you did not lose it.   You just do not get the full amount again.   The software is reconciling the full amount with the amount you received in advance.   Look at line 28 for the amount of Child Tax Credit on Form 1040.  And….make sure you use letter 6419 from the IRS when you enter the advance child tax credit you received.    It is important to enter your advance CTC correctly to avoid delays in processing your return.

[manbeing]

Is the letter 6419 the one I uploaded above?

there is no information of what the letter number is on the letter

Thanks.

[xmasbaby0]

Yes----that is the letter......it is hard to see all of it in your screen shot.  Somewhere on it you should see 6419---look up near the top

[Critter-3]

Note ... if you file a joint return then you must use the box 1 amount from both spouse's 6419 letters combined.  Each spouse should have gotten a letter if you filed the 2020 return jointly.

[goyanks]

Yeah it's really easy to miss though.

Under "You and Your Family," next to "child and other dependent credits," click Start or Update > click continue > answer the Where you spent your time question > Then it will ask if you received any Advance Child Tax Credit payments. Select Yes to enter that info.

Hope that helps

[Vince7]

Hello folks,

We received two AdvCTC letters for our 4 year old child. Does this child tax credit go on my joint tax form or on the daughter's tax form?

Thanks,

Vince

[AamilD]

You will input that information on your joint tax form under the Child Tax Credit Section.

[Jessica1979Feb]

Were does one enter the AdvCTC payments in TurboTax for 2021 Tax filing?

[AamilD]

@Jessica1979Feb , Please follow the steps below to enter Child Tax Credit Information:

1. Click on Tax Home from Left Side Menu.
2. Click on Deductions & Credits from the main screen.
3. Scroll down till you see the section titled "You and Your Family". Within this section there will be an option for "Advance payments, Child and Other Dependent Tax Credits". Click on Start/Revisit next to it. You will then be asked if you received Child Tax Credit Payments. Respond with a Yes/No. 
4. If you answer Yes, Then it will ask you the amounts you have received so far and you will enter that as stated on your Letter 6419. Then enter all the relevant information and proceed ahead. Once you enter that information, TurboTax will adjust your refund amount/owe amount accordingly.

[Jessica1979Feb]

Easy to miss, it's under Federal Taxes > Deductions and Credits > You and Your Family > Child and Other dependent Tax Credits.

[Jessica1979Feb]

Thank you!