Advance Child Tax Credit

Forum|Forum|4 years ago
March 1, 2022
2 replies
10 views

I am helping a friend do taxes with Turbotax. He and his ex-wife take turns each year claiming their son. Last year (2021) she got an advance child tax credit as she claimed him for 2020 tax year. He is claiming his son for 2021 tax year and it asks if he received an advanced child tax credit. He did not but she did. How is this to be approached ? Should he answer yes as one of the parents did? Or should he answer no and what will this mean for her? They have a mutual agreement and always try to make things fair.

Bsch4477

Level 15

Since he didn’t get the credit he answers no and will get it on his 2021 return. She can keep the credit she received with no repercussions.
Edit….sorry, I was thinking of the stimulus payment. For the advanced child credit he reports he didn’t get it and will receive the total amount due him. She may have to pay back what she received depending on her AGI.

JillS56

Level 10

It depends. If he answers that he did not receive any Advanced Child Tax Credit then he will receive the full credit. She will not have the child listed on her return and she will have to report what she received and then he will have to repay what she received on her return.

What I am not sure of is can he report the amount received on his return and receive the Refundable Child Tax Credit and then they would both have received one-half of the child tax credit.

I am not sure if the IRS is tracking the Child Tax Credit by social security numbers of the children or of the parent who received the Advanced Child Tax Credit.

The IRS has stated the following concerning this situation:

If a parent is receiving 2021 advance child tax credit payments and they shouldn't be, what should they do?

Parents who will not be eligible to claim the child tax credit when they file their 2021 tax return should go to IRS.gov and unenroll to stop receiving monthly payments. They can do this by using the Child Tax Credit Update Portal. Receiving monthly payments now could mean they have to return those payments when they file their tax return next year. If their custody situation changes and they are entitled to the child tax credit for 2021, they can claim the full amount when they file their tax return next year.

How a taxpayer's custody situation may affect their advance