2021 advanced tax credit with shared custody

[rock7791]

Hi, all

I need some help to figure out how to handle this situation. My ex claimed our son on her 1040 form in 2020, now 2021 is my turn to claim my son as a dependant. But we didn't realize it and she didn't unenroll of the Advanced child tax credit program, now she received a mail stating X amount of money she received in 2020 as Advanced child tax credit.

My question is can I still claim my son as my dependant on this year's tax return to receive a full amount of child credit? and should my ex return the incorrectly collected child credit back to IRS? Would this cause any complications that could potentially prolong my tax return this year?

Thanks in advance!

[DawnC · Accepted solution]

Yes, if you are otherwise qualified to claim your son, you can claim him and the full Child Tax Credit.   Your ex will report the payments she received on her return and depending on her income level, she may or may not have to pay the advance back (see link below for details on the repayment protection).   And no, it should not delay your tax return processing - it is a pretty common scenario.   Do not report any of your ex's payments on your return though; that may cause a delay.   

Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return

[rock7791]

Thanks for your reply!