How to Check if the Child Tax Credit Was Applied to Your Refund

The Child Tax Credit can lower your tax bill or boost your refund, but errors or adjustments by the IRS can affect the final amount. Reviewing your return ensures accuracy.

Documents You Need for Verification

To confirm whether the Child Tax Credit was applied, gather key documents. IRS Form 1040 outlines total tax liability, applied credits, and refund amounts. If you filed jointly, ensure you have the correct version with both spouses’ information.

Form 8812 (Credits for Qualifying Children and Other Dependents) calculates the refundable portion of the credit, known as the Additional Child Tax Credit (ACTC). If the amount received differs from expectations, this form may explain why.

If you received IRS Notice CP08, the IRS believes you may qualify for the credit but didn’t claim it. This suggests the credit wasn’t applied, and further action may be needed.

Locating the Credit on Your Tax Return

The Child Tax Credit appears on different lines depending on whether it reduced tax liability or was refunded.

Main Form Lines

Check Form 1040, Line 19 for the total Child Tax Credit applied. If this line is blank or lower than expected, eligibility issues or IRS adjustments may be the cause.

For the refundable portion, look at Form 1040, Line 28. This shows the Additional Child Tax Credit refunded to you. For 2023, the maximum refundable amount is $1,600 per qualifying child. If this amount is missing or lower than expected, review Form 8812 for the calculation.

Additional Schedules

If your tax situation involves adjustments, the credit may also appear on Schedule 3 (Form 1040), Line 6d, which consolidates nonrefundable credits.

The Child Tax Credit phases out for higher-income taxpayers. The credit begins to decrease when modified adjusted gross income (MAGI) exceeds $200,000 for single filers or $400,000 for joint filers. The reduction is $50 for every $1,000 over the limit. If your income exceeds these thresholds, check Schedule 3 and Form 1040, Line 11 (Adjusted Gross Income) to see if a phaseout affected your credit.

Supporting Worksheets

The Child Tax Credit and Credit for Other Dependents Worksheet in the Form 1040 instructions details how the credit was calculated. This helps verify whether the correct number of qualifying children was included and if income limits affected the final amount.

For the Additional Child Tax Credit, Schedule 8812, Part II outlines the calculation. Earned income must exceed $2,500 to qualify for the refundable portion. If your refund was lower than expected, this worksheet can clarify whether income requirements or other factors reduced the credit.

Checking a Tax Account Online

To verify the Child Tax Credit online, log into your IRS account at IRS.gov and go to the Tax Records section. Your Account Transcript details payments, credits, and adjustments.

The Account Transcript lists the credit under Transactions, often labeled as “Additional Child Tax Credit” or “Refundable Credit Applied,” along with the processing date. If the amount differs from expectations, check the Explanation of Transactions section for details.

Comparing the Tax Return Transcript with the Account Transcript can provide further insight. While the Tax Return Transcript reflects the original return, the Account Transcript shows IRS adjustments. If the IRS modified the credit, you may see Code 290 (Additional Tax Assessed) or Code 846 (Refund Issued).

If the credit is missing from your transcript, use the IRS Where’s My Refund? tool for updates. If the refund is lower than expected, the IRS may have recalculated the credit based on eligibility or income limits.

Handling Notices or Adjustments

If the IRS sends a notice about the Child Tax Credit, it likely indicates a discrepancy between the amount claimed and what was allowed. These notices often result from errors in dependent eligibility, income miscalculations, or verification issues.

A common notice is IRS Notice CP12, which informs taxpayers of a miscalculation that led to an adjustment. These notices don’t always require action unless you disagree with the correction.

Some adjustments result from third-party data mismatches. If the IRS receives conflicting information from W-2s, 1099s, or Social Security records, it may recalculate credits. This often happens when multiple taxpayers claim the same dependent. If this occurs, the IRS may issue a CP87A notice, indicating another filer has claimed the dependent. Resolving this requires submitting proof of eligibility, such as birth certificates, school records, or medical statements linking the child to your address.

Resolving Missing or Incorrect Credits

If the Child Tax Credit is missing or incorrect, identifying the cause is the first step. The issue may stem from IRS adjustments, filing errors, or missing documentation. Reviewing your tax return and transcripts can clarify whether the credit was reduced, disallowed, or omitted.

If the credit was denied due to eligibility concerns, filing an amended return using Form 1040-X may be necessary. This is especially relevant if dependents were mistakenly omitted or if incorrect income figures affected the credit. Supporting documents, such as birth certificates, school records, or residency proof, may be required. If the IRS previously disallowed the credit due to an audit, Form 8862 (Information to Claim Certain Credits After Disallowance) must be submitted to reinstate eligibility.

If the IRS adjusted the credit without explanation or the refund amount is lower than expected, contacting the agency directly may be necessary. Call the IRS Taxpayer Assistance Line at 1-800-829-1040 or schedule an appointment at a local Taxpayer Assistance Center (TAC) for clarification. If the IRS made an error, requesting a reconsideration or audit review may be an option. For unresolved disputes, filing a case with the Taxpayer Advocate Service (TAS) can help expedite resolution, especially if financial hardship is involved.