Accidentally claimed dependents incorrectly

[oneglory]

My wife and I usually file "Married - File separately", due to some circumstances. Because of those circumstances my wife needs to claim one of our two kids. In 2020, for some unknown reason neither of us noticed that I had claimed both kids (whoops). This is messing with our circumstances, to correct these circumstances we need to have one of our kids back on my wife's return for 2021.

Unfortunately, we (I) received Advanced childcare payments in 2021 which is complicating things. Removing the one child from my return is simple enough, it asks for the amount from the 6419 for which it subtracts what's seemingly the proper amount from the one kid I have corrected. Turbotax however, is asking my wife if she received payments which she did not, if she answers "No" it seems to double the credit (as if she's owed the advanced payment I already received), if she answers "Yes" the payment halves like she did get ACPs (which she didn't, I did). 

Is there a way for her to claim 1 child for 2021, say she didn't get payments and also not get that double payment (that I already got) or am I going to have to repay it? Very confused.

[ThomasM125]

There is not a way for your spouse to enter the advanced child care payment you received on her tax return. 

The advance child tax credit was paid based on the children listed on your tax return in 2020. When you change dependents in 2021 as you have, you are still entitled to the advance credit your received, provided your income is under certain thresholds.

So it is possible that you will receive more child tax credit money than you were normally entitled to, but if your income is under the threshold for having to pay it back, you won't need to pay the excess back. Your spouse will still be entitled to her credit based on what appears on her tax return. So, you should answer the questions accurately in TurboTax and the correct child tax credit will be calculated and you will not have to pay anything back.