Question

Having Problems with Child Tax Credit

Forum|Forum|4 years ago
January 21, 2022
20 replies
0 views

So I am trying to file my 2021 return as a head of household with 1 dependent and I received $1500 for CTC in 2021 and it also says that on my letter 6419. To my understanding, I am supposed to also receive the remaining $1500 and continue getting them for 2022 but when I enter how much I got in 2021 which is 1500, it just deducts 1500 from my tax return, I am really confused as I thought I should be receiving an additional 1500 on top, not having the money I received taken back from me. Just wanted to ask If there is something wrong or am I just not getting something. And additionally, I have checked all the requirements for receiving CTC and they all still apply to me.

X

xmasbaby0

Employee

Federal>Deductions and Credits>You and Your Family>Child Tax Credit

The IRS is sending out letter 6419 to you. It will show the amount of advance child tax credit that you received during 2021. Enter the information from that letter carefully. The remaining amount of CTC that you can receive will show up on line 28 of your 2021 Form 1040.

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

NOTE: The CTC is indeed a “credit” that can be applied toward any tax liability that you would otherwise have to pay as “tax due” to the IRS.

And…..Ignore that “refund monitor.” The software STARTS OFF by giving you the full amount of CTC. When you enter the amounts from your letter, the software reconciles the amount you received with the amount you can still get IF you are eligible to get the other half. You are NOT losing any of the credit; you are not being taxed on the credit. Don’t get confused by the reconciled amount. You got some of it already—-now you get the rest.

If you received the advance payment and are NOT eligible to get the other half, then it will not show up on line 28. (Such as in some cases where the wrong parent got the advance payments, etc.)

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

M

mevaladez

Mine is having issues calculating the correct amount as well. I should be receiving $4800 but isn't calculating that part. I have been online with a turbo tax representative for over 2 hours. She can't seem to figure it out. Asked me if I entered the Advanced child credit. I said yes that is why it went down by $4800 but shows I have less than $2000 for a refund which isn't any of the credit for the remaining $4800. I think there is something wrong in the way turbo tax calculation is set up.

G

Gabriel_a95

Turbo tax needs to get it together. Do you guys think the IRS will catch this error? I’m hoping they do because I filed mine even though the half amount I was supposed to receive got deducted. I also file taxes for my family so I want to prevent this on their taxes as well. So stressful!

rjs

Employee

@mtkendirli wrote:

To my understanding, I am supposed to also receive the remaining $1500 and continue getting them for 2022

There are no advance payments of the Child Tax Credit in 2022. Advance payments have ended. You will get the full amount of your 2022 Child Tax Credit on your 2022 tax return that you file a year from now.

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mtkendirliAuthor

Got it. But other than that I still shouldn't be losing money and will actually get the 1500 I am missing from 2021 even though the refund monitor above says otherwise?

X

xmasbaby0

Employee

@mtkendirli Do you see $1500 on line 28?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

M

MissVibe

I am having the same exact issue. I have 2 children and received half of my CTC in payments last year, a total of 3,000. I should be receiving the other 3,000 CTC on my tax return, however when I put in the information in the child tax credit area, it make 3,000 DUE. I looks as if they want me to pay back the CTC from last years payments and not give me my other 3,000 credit that is owed. Haven't filed yet because of this issue, this is not right at all.

X

xmasbaby0

Employee

@MissVibe

Federal>Deductions and Credits>You and Your Family>Child Tax Credit

The IRS is sending out letter 6419 to you. It will show the amount of advance child tax credit that you received during 2021. Enter the information from that letter carefully. The remaining amount of CTC that you can receive will show up on line 28 of your 2021 Form 1040.

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

NOTE: The CTC is indeed a “credit” that can be applied toward any tax liability that you would otherwise have to pay as “tax due” to the IRS.

And…..Ignore that “refund monitor.” The software STARTS OFF by giving you the full amount of CTC. When you enter the amounts from your letter, the software reconciles the amount you received with the amount you can still get IF you are eligible to get the other half. You are NOT losing any of the credit; you are not being taxed on the credit. Don’t get confused by the reconciled amount. You got some of it already—-now you get the rest.

If you received the advance payment and are NOT eligible to get the other half, then it will not show up on line 28. (Such as in some cases where the wrong parent got the advance payments, etc.)

That “refund monitor” should not be taken seriously until every last morsel of your data has been entered.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

M

MissVibe

I understand all of this information, however I don't think you're understanding the problem. They have me paying back 3,000 instead of giving me the credit of 3,000. Child Tax "CREDIT"... It says Congratulations you get a tax break! and then adds 3,000 DUE on to my amount. I've been using Turbotax for 8 years now and never have I come across this issue.

G

Gabriel_a95

I had the same issue. Mine got deducted and i was under the impression we were supposed to receive the other half. I got so fed up and just gave up and filed it anyway.

P

pse224

Yeah im having the same issues i think Turbo Tax needs to re look at the calculations. Before people submit them and have to amend there taxes to claim the other half.

X

xmasbaby0

Employee

@pse224 @mtkendirli @Gabriel_a95 @mevaladez

Look at line 28 of your Form 1040. That is where you will see the "other half" of the child tax credit that you seem to think you are not getting. The software puts it on line 28 and adds it to your refund.

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

The "refund monitor" starts off by giving your all of the stimulus money and all of the child tax credit because the software does not know yet that you received stimulus money or that you received some advance child tax credit payments. That gets reconciled later.

That "refund monitor" changes as you enter information. That is normal. And you cannot take it seriously until you enter ALL of your information---even though it is so tempting to believe that the highest amount is the "right" refund.

Federal>Deductions and Credits>You and Your Family>Child Tax Credit

The IRS is sending out letter 6419 to you. It will show the amount of advance child tax credit that you received during 2021. Enter the information from that letter carefully.

The remaining amount of CTC that you can receive will show up on line 28 of your 2021 Form 1040.

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

NOTE: The CTC is indeed a “credit” that can be applied toward any tax liability that you would otherwise have to pay as “tax due” to the IRS.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

T

Tye99

I am having the same issue. I tried it with turbid tax and H&R Block. The same thing happens

DoninGA

Employee

@Tye99 wrote:

I am having the same issue. I tried it with turbid tax and H&R Block. The same thing happens

What amount is entered on your federal tax return, Form 1040 Line 28?

A

allibaba6

I'm having the same problem and after reading many posts, folks aren't understanding.

I have 3 kids. The credit is FULLY refundable. My refund should START at $9000 and after I indicate that I've already received $4500 it should drop to $4500 as a refund. It's not doing that. The refund is starting at $4500 and dropping to $0 after I enter what I've received. There's for sure some sort of calculation error. It's frustrating!

DoninGA

Employee

@allibaba6 wrote:

I'm having the same problem and after reading many posts, folks aren't understanding.

I have 3 kids. The credit is FULLY refundable. My refund should START at $9000 and after I indicate that I've already received $4500 it should drop to $4500 as a refund. It's not doing that. The refund is starting at $4500 and dropping to $0 after I enter what I've received. There's for sure some sort of calculation error. It's frustrating!

Are all 3 children under the age of 18 in 2021? Have verified the children's information, including Date of Birth, in the Personal Info section of the TurboTax Program?

What is your Adjusted Gross Income as shown on your 2021 federal tax return, Form 1040 Line 11?

What amount is shown on the 2021 federal tax return, Form 1040 Line 28?

A

allibaba6

Yes, all 3 qualify and I verified their information. Income is well under the $150,000 limit for a married couple filling jointly. The number on line 32 is $4500.

Regardless, since it's fully refundable, my refund should be a minimum of $4500. It's not even close.

A

Akasha

I'm having the exact problem that she's talking about. My refund was saying 3000 something then i put that credit info in and it took away the 3000 instead of adding it.

X

xmasbaby0

Employee

Stop watching the refund monitor and pay attention to line 28. That is where you will see the rest of the CTC that you get.

The "refund monitor" starts off by giving your all of the stimulus money and all of the child tax credit because the software does not know yet that you received stimulus money or that you received some advance child tax credit payments. That gets reconciled later.

That "refund monitor" changes as you enter information. That is normal. And you cannot take it seriously until you enter ALL of your information---even though it is so tempting to believe that the highest amount is the "right" refund.

Federal>Deductions and Credits>You and Your Family>Child Tax Credit

The IRS is sending out letter 6419 to you. It will show the amount of advance child tax credit that you received during 2021. Enter the information from that letter carefully.

The remaining amount of CTC that you can receive will show up on line 28 of your 2021 Form 1040.

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

NOTE: The CTC is indeed a “credit” that can be applied toward any tax liability that you would otherwise have to pay as “tax due” to the IRS.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

P

pse224

I dont think you get what people are saying. When you get to the end and ready to submit nothing changes.

D

dmathes01

The problem is turbo tax software is subtracting the child tax credit twice instead of once! I looked at my tax return last year and it's not calculating correctly because it's not putting the tax credit in the correct line (19). Once they fix the software you will get the correct return.

DoninGA

Employee

@dmathes01 wrote:

The problem is turbo tax software is subtracting the child tax credit twice instead of once! I looked at my tax return last year and it's not calculating correctly because it's not putting the tax credit in the correct line (19). Once they fix the software you will get the correct return.

The Child Tax Credit on a 2021 tax return is shown on the Form 1040 Line 28.

DoninGA

Employee

@dmathes01 wrote:

It's not taking our credits and subtracting it from our taxes! It's subtracting from our refund. Fix the problem. I compared my taxes this year from last year I made the same and have a bigger child tax credit but I got $7000 less and almost have to pay now! Something is not working right!

Did you receive any advance child tax credits in 2021? If so, when you reported those credits it reduced the amount of child tax credits you can receive on the 2021 return. Look at your federal tax return Form 1040 Line 28 for the child tax credits you are receiving.

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Tnr

I’m having same issue I should be receiving another 3300 but federal return is far below and I’ve never owed significant to fed that this would make since for the many years we’ve done our taxes I will look into the line to further investigate but I am also stalled due to this