Good morning with the child tax payment we are getting each month how will this work. My ex and I claim our daughter every other year. Last year I claimed her and getting the monthly payments. Next year she will and will claim other half of the credit. How will this effect me when filing taxes next year?
You'll need to sign in or create an account to connect with an expert.
Consider using the Child Tax Credit Update Portal (CTC UP) to unenroll from receiving advance Child Tax Credit payments, or to remove that child from your Child Tax Credit information provided to the IRS. As a result, your future advance Child Tax Credit payment amounts will be reduced to take into account your unenrollment or removal of that child.
If you take neither action, you may need to repay to the IRS the amount of advance Child Tax Credit payments you received that are based on that child when you file your 2021 tax return next year.
For more information regarding CTC UP, see Topic F: Updating Your Child Tax Credit Information During 2021.
Remember, the payments you receive are an advance of the Child Tax Credit that you would normally get when you file your 2021 tax return. Because these credits are paid in advance, every dollar you receive will reduce the amount of Child Tax Credit you will claim on your 2021 tax return. This means that by accepting advance child tax credit payments, the amount of your refund may be reduced or the amount of tax you owe may increase.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
evan-scott1
New Member
reeree1121
New Member
jacq848117
New Member
hmharvey0312-gma
New Member
ksaunders8211
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.