Q: I claimed the Child Tax Credit, but my refund just hit for less than I filed. What happened?
A: You likely triggered a “Math Error” adjustment.
Millions of early filers in February 2026 are receiving Notice CP12 from the IRS. This letter explains that the IRS automatically corrected a mistake on your return.
The culprit? The new 2025 tax year limits. While the Child Tax Credit (CTC) base amount increased to $2,200 per child (up from $2,000), the refundable portion (the Additional Child Tax Credit or ACTC) is capped at $1,700.
If your tax software or preparer tried to claim the full $2,200 as a refundable credit when you had zero tax liability, the IRS computer system instantly rejected the excess and lowered your refund.
Q: Does this mean I am being audited?
A: No.
A CP12 notice is automated. It is not an audit. It is a notification that the IRS fixed a calculation error. You do not need to send in receipts unless you disagree with their math.
Q: Can I fight it if I think they are wrong?
A: Yes, but you have a deadline.
You have 60 days from the date on the CP12 notice to dispute the change.
- Call: Use the number on the top right of the notice.
- Explain: Tell the agent why you qualify for the higher amount.
- Warning: If you don’t call within 60 days, the change becomes final legally.
Q: I heard some states are sending separate checks. Is that real?
A: Yes.
Do not confuse your federal refund with these state-specific “Baby Bonus” credits being mailed in March 2026:
| State | Credit Name | Max Amount (2026) |
| New York | Empire State Child Credit | Up to $1,000 (under age 4) |
| California | Young Child Tax Credit | Up to $1,189 |
| Colorado | Family Affordability Credit | Up to $3,200 (varies by income) |
Q: What is the “Ghost Preparer” scam targeting parents?
A: Watch out for “advocates” on social media.
Scammers are posting videos claiming they can “force” the IRS to give you the full $2,200 refundable amount if you file a specific “amendment.”
- The Trap: They charge you $50 to file a fake amendment.
- The Result: The IRS rejects it, charges you a penalty for a frivolous filing, and you lose your $50.
Bottom Line: If your refund is short by exactly $200 or $500, check your transcript for Code 290 (Additional Tax Assessed) or wait for the CP12 letter. It is usually just the math correction.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Always consult official government resources.
Evan Cole Editor-in-Chief | Breaking News & Public Policy
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