Question

Why does TT say I owe my ACTC when I add the correct payment and try to amend my taxes?

Forum|Forum|4 years ago
April 8, 2022
2 replies
0 views

My tax return was accept by turbotax but the IRS found an error with my advanced child tax credit. When I go back into TurboTax to amend my tax return, they say I owe the advanced child tax credit payment. I did not ament my return yet because I am unsure if TurboTax will charge me for the credit amount or send my change to the IRS and adjust my return.

TurboTax Deluxe Online

AmyC

Employee

If the IRS says they found an error, they will mail you a letter and correct your refund. There is no need for an amended return.

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d7a5cb5822eeAuthor

They corrected my refund and now I owe. I went from getting back 4K to owing $37 all because I forgot to add the ACTC amount. So I was going to amend and add the amount but TT is saying that I’ll have to owe the ACTC amount back instead if I choose to amend.

VolvoGirl

Employee

How many children do you have and their ages? How much Advance Child Tax Credit did You get? What's on line 28?

A common reason is you claimed too much Child Tax Credit on line 28 but the IRS had already sent it to you. Did you check 1040 line 28 for it? That is the remaining credit you get, not the advance you already got. It either adds to your refund or reduces a tax due.

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d7a5cb5822eeAuthor

I have one 2 year old. And I know that I forgot to add the actually dollar amount of the ACTC. So since I forgot that, the IRS corrected my refund to me owing money instead of receiving any back. I didn’t expect missing the ACTC would make me owe money when I always receive money back.

VolvoGirl

Employee

@d7a5cb5822ee No you don't need to amend for that. You tried to claim the full Child Tax Credit on your return so your refund was too high. The IRS knows they sent the advance to you. The Advance Child Tax Credit didn't work out so good and now people are seeing their refunds reduced or owe more.

I found this in a news article, it explains it pretty well........

While the CTC expansion was structured to not increase taxes on any household, a dollar of credit received in advance results in a dollar less received at filing time. For families unaware of the trade-off, it could mean a surprise when they see their refund total this year.

Consider a married couple with a 10-year-old child who normally received their $2,000 CTC when they filed their taxes. They would have received $1,500 of their $3,000 in advance. As such, they could potentially see their refund shrink by $500 even though their total benefit increased to $3,000 because they are left with $1,500 instead of their normal $2,000 at tax time.