If you have already filed 2020 taxes but did not initially qualify for the CTC do I need to amend the return to qualify for the Advanced CTC 2021?

[arharris2]

So, I filed taxes when I don't normally because I get disability so that I could get stimulus for my children that I didn't get previously. However, I don't normally qualify for the Child Tax Credit which I didn't on taxes. The IRs website says you must claim the credit or have used the non-filers tool to qualify for the Advanced Tax Credit for 2021. Does this make me ineligible then? We should be getting the credit right?

[xmasbaby0]

 More information will be available soon; the details of how it will be implemented have not yet been clarified fully.  There will be monthly payments going out beginning in July 2021, with some of the CTC still left as a refundable credit on your 2021 tax return next year.

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/01/1393859...

https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

https://www.irs.gov/newsroom/irs-unveils-online-tool-to-help-low-income-families-register-for-monthl...

IRS.gov/childtaxcredit2021, 

https://www.kiplinger.com/taxes/602921/child-tax-credit-update-irs-sending-letters-to-families-who-m...

https://www.kiplinger.com/taxes/602431/child-tax-credit-2021-who-gets-3600-will-i-get-monthly-paymen...

[Critter-3]

For the advance of the 2021 CTC see the other  answer in this thread but  you were eligible for the CTC once the unemployment has been excluded AND you have qualifying children on the return then the IRS will automatically compute that credit when the recalculate the return so just wait until they do sometime this summer. 

[MSMO1981]

Hi Critter. I have a question if you don't mind. My son's father and I have court order of sharing child dependent for alternate tax seasons. He has even years and I have odd years. The advance child tax credit payments are for 2021, correct? Then, this will have me qualified to claim the credit, correct? How can I claimed the credit if the noncustodial parent has filed his 2020 tax return claiming the child as a dependent (even year)? I had to file 2020 as single, so when the IRS looks at my last tax return, I am considered disqualified from claiming the credit. Is there a way for me to update my information to get the credit, if the credit is for 2021, then it is an odd year, and it is my turn to claim the child.

[Critter-3]

1) parent who claimed the dependent for the CTC on the 2020 return who will NOT claim the child on the 2021 return  MUST  go online NOW and remove the child so they don't get advance payments they will need to repay on the 2021 return :  

Q F4. What do I need to do to unenroll myself from receiving advance Child Tax Credit payments? (upd...

A4. The Child Tax Credit Update Portal (CTC UP) will allow you to unenroll from receiving advance Child Tax Credit payments. More details will be provided regarding CTC UP through these questions and answers.

2)  You eventually may be able to add the child to get the advance payments ... if you claimed the child on the 2019 return it should work now ...

Q F3. What if I will claim a child on my 2021 tax return but did not claim that child on my 2020 tax...

A3. Your first advance Child Tax Credit payments will be based on the children you claimed for the Child Tax Credit on your 2020 tax return (or 2019 tax return, if your 2020 tax return has not been processed as of the payment determination date for any of your monthly advance Child Tax Credit payments).

Later this year, the Child Tax Credit Update Portal (CTC UP) will be updated to allow you to inform us about the qualifying children you will claim on your 2021 tax return so that we can adjust your estimated 2021 Child Tax Credit – and therefore adjust the amount of your monthly advance Child Tax Credit payments.

If you do not receive advance Child Tax Credit payments for a qualifying child you will claim in 2021, you may claim the full amount of your allowable Child Tax Credit for that child when you file your 2021 tax return.

More details will be provided regarding CTC UP through these questions and answers

https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-t...

[Critter-3]

And you do know that if you are the custodial parent according to the IRS then you will claim HOH every tax year ... the courts cannot negate IRS rules.  

There is no such thing in the Federal tax law as 50/50, split, or joint custody.  The IRS only recognizes physical custody (which parent the child lived with the greater part, but over half, of the tax year.  That parent is the custodial parent; the other parent is the noncustodial parent.)

Who can claim the exemption and credits depends on who is the custodial parent. (By the IRS definition of custodial parent for tax purposes - this is not the same as the custody that a court might grant.).

The test that the IRS uses to determine the custodial parent is where the child lived for more than 1/2 (or greater part) of the year. The IRS will go so far as to require counting the nights spend in each household - that person is the custodial parent for tax purposes (if exactly equal and more than 183 days - The custodial parent is the parent with the highest AGI, if less than 183 days then neither parent has custody). That can usually only occur if both parents lived with the child at the same time.   And yes they are that picky.

The custodial parent may claim everything child related  UNLESS they waive the dependency exemption to the non custodial parent via a form 8332.... in that case the child may be used on 2 separate returns but only in the following way :

Only the Custodial parent can claim: (Child would be listed as non-dependent EIC & CC only)
-Head of Household 
-Earned Income Credit
-Child Care Credit

The non custodial parent can only claim: (Child would be listed as dependent)
-The Exemption
- The Child Tax Credit

See Special rule to divorced or separated parents (or parents who live apart) on page 32:
https://www.irs.gov/pub/irs-pdf/p17.pdf

But only if specifically specified in a pre-2009 divorce decree, separation agreement or the custodial spouse releases the exemption with a signed 8332 form - after 2009 the IRS only accepts a signed 8332 form that must be attached to the non-custodial parents tax return.