Advance Child Tax Credit Documentation in Turbo Tax for Dependents Who Have Exchanged Custody

[VoodooChief]

Good Day, 

My children lived with their father last year and was claimed on his 2020 return.  He received the payments, which I felt was fair because he did provide 100% support and I was unable to provide any at all.  This year, my children returned to me and I have been providing majority of the support as their father fell ill and was unable to work most of the year.  Their father is attempting to complete his taxes now, but once he removes our children from his profile or answers that he did not provide support this year to be eligible to claim them, and enters the amount of ACTC he received, it automatically puts him at a $3600.00 deficit.  We were told that he could qualify for repayment forgiveness if his MAGI is within limits, which it is.  How does he go about requesting or applying for the repayment forgiveness in tubotax?  We were told that it should automatically adjust if he is within the limits of the MGI, but it is not.  How or where do we fix this problem?  Any help is appreciated. 

[DaveF1006]

It depends.  How much ACTC did he receive, how many children, and what are their ages? 

[VoodooChief]

He received a total of $3600.00. Two children, current ages are 3 and 1. 

[Opus 17]

Repayment protection is covered here.

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

No one here can see his tax return so we can't say why it is not being calculated.  He may want to call customer support and they can do a screen share with him. 

[DaveF1006]

If your husband had properly put his information into the return Turbo Tax DOES properly apply payment forgiveness.  To test.

1. I adjusted my income below $40,000.
2. I then reported I received $3600 in ACTC.
3. After entering, I received a message telling me I do not qualify for the Child Tax Credit but "The good news is you also qualify for repayment protection. This reduces the amount you have to repay, and, in some cases, means you won't have to pay any of it back." i will show you the screen at the end of this post.

To qualify for a forgiveness repayment, the following parameters must be met.

• $60,000 if you are married and filing a joint return or if filing as a qualifying widow or widower;
• $50,000 if you are filing as head of household; and
• $40,000 if you are a single filer or you are married and filing a separate return.

Here is the screen image I am talking about:

[VoodooChief]

Thank you DaveF1006.  I am not sure why it is not adjusting on his end.  He was a student all year and doesn't have a W2 to input any income.  He is definitely within the parameters of the AGI, but for some reason, it is just not adjusting.  

[DaveF1006]

Ask him to make sure he checks that his main home was in the US for more than 6 months during the year. That is the only other disqualifier I can think of.