Question

My 2020 Child Tax Credit was $2500. TurboTax says my 2021 is $1000. Why?

Forum|Forum|4 years ago
February 14, 2022
1 reply
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Married file joint, for 2020 and 2021 (and many years before). We have a 7 year old kid.

My 2020 tax info:

Adjusted Gross Income $ 297,692.00

Taxable Income $ 272,892.00

My 2021 tax info:
Adjusted Gross Income $ 303,813.00
Taxable Income $ 278,713.00

We both received advance child tax credits in 2021 in our bank account $500 each for $1000 total. TT says I have to pay that back, OK.

Has the tax code/law changed from 2020 reducing it from $2500/kid to $2000/kid? I'd think I should show $1500 in TT (since I have to pay back the $1000)?

AliciaP1

Yes, the tax code has changed, but the Child Tax Credit actually went up in 2021. While you are reporting AGI over the limit of $150,000 for Married Filing Jointly, you would still qualify for the phased-out credit as long as all other conditions are met.

See What is the Child Tax Credit? for the specific conditions and the phase-out calculation.

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A

AMG1978Author

I posted this then I dug deeper and I see this on the TT app under Help for the child tax credit

You can get up to $2,000 for each child you claim. That's money in your pocket.

So, ok. This is all correct.