How can I send back the advance child tax credit to the IRS if I didn't qualify to receive it in 2021? I'm supposed to receive it in even years.

Forum|Forum|4 years ago
February 1, 2022
3 replies
58 views

Because I claimed our daughter as my dependent in 2020 (my ex-wife gets to do this in odd-numbered years), the IRS sent me the advance child tax credit payments ($1500 total in 2021) instead of to her Mom. Since I regrettably didn't notify the IRS to stop these payments, I assume they need to be repaid to the IRS. Can I do this somehow when I file my 2021 return with Turbotax so it gets deducted from my refund? I also don't want my ex-wife's child tax credit to be delayed or adversely affected because of this. Thank you.

TurboTax Online

HelenC12

Alumni - Intuit

According to the IRS, you should return the payment as soon as possible by following the instructions below. Regarding your wife's 2021 income tax return and avoiding any delays or adverse affect, that is up to the IRS. TurboTax has no control over that.

If the payment was a paper check and you have not cashed it:

Write "Void" in the endorsement section on the back of the check. Mail the voided Treasury check to the appropriate IRS location listed below. Don't staple, bend or paper clip the check.
Include with the voided check a separate, brief, written explanation stating the reason for returning the check, including whether you want to unenroll from future monthly advance Child Tax Credit payments.

If the payment was a paper check and you have cashed it, or if the payment was a direct deposit:

Submit a personal check or money order payable to "U.S. Treasury" to the appropriate IRS location listed below. In the memo line, write “AdvanceCTC” and the Social Security number or Individual Taxpayer Identification Number of the recipient of the check or deposit.
Include with your personal check or money order a separate, brief, written explanation stating the reason for returning the payment, including whether you want to unenroll from future monthly advance Child Tax Credit payments.
Click here for the IRS mailing address to use, based on your state.

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videoguyAuthor

Level 2

Thank you for your prompt response. I will follow your advice and send a check to the IRS for the $1500 overpayment for the advance child tax credit, but I also don't want to receive the additional $1500 that the IRS is including in the refund amount that's showing in my current Turbotax results. I haven't filed this return yet so I was hoping to eliminate the $1500 from the current refund amount by putting "0" on line C! in the Smart Worksheet of Schedule 8812, instead of "1." When I tried this out, Turbotax automatically lowered my refund by the $1500 amount I was hoping, but the number "0" won't match with the number ("1") shown in box 2 of letter 6419 from the IRS. Will that cause a problem or is this a good way of keeping the $1500 (for the 2nd half of the child tax credit) out of my refund? Also, will any of this activity interfere with my ex-wife's ability to claim the entire $3,000 on her 2021 return? Thanks so much.

AliciaP1

Alumni - Intuit

While you should pay the Advance Child Tax Credit back ASAP, you can input the payment on your tax return and have it calculate into your total amount due or reduce your refund. I would only advise this if you are filing now and paying now if any amount is due.

To enter info for the Advance Child Tax Credit please follow these steps:

Sign in to TurboTax and open or continue your return.
Search for Child Tax Credit.
Click the Jump to child tax credit link and Continue.
Answer the question on the Let's start with where you spent the most time in 2021 screen and Continue.
On the Tell us about any advance Child Tax Credit payments screen, answer Yes, enter the amount from your letter in the Tell us about any advance Child Tax Credit payments box, and Continue.
Answer the questions on the following screens, confirm your amount on the Let's recheck your advance Child Tax Credit payments screen, and Continue.

Since you are not claiming your daughter as your dependent this year, be sure you have removed her from your tax return information and TurboTax will calculate the fact that you are not entitled to the remaining credit amount automatically. Your wife will be able to claim the full credit regardless of how you handle your situation.

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