Child Tax Credit

[LaurieP7]

In December of 2020, my husband and I were made the Safety Persons for our then 6 month old granddaughter who had been physically abused. In March of 2021 my husband and I became her legal guardians.  She has lived with us and we have supported her since December of 2020.  Her Mother (our daughter) claimed her on her 2020 taxes. This is my question.... We are claiming her this year. My daughter received the advanced CTC from July to Dec. When we file and claim our granddaughter, how do we answer the question "Did you receive the advanced CTC"?.  WE didn't but our daughter did receive those payments even though she did not care for, live with or financially support her daughter for all of 2021.  Should I answer it YES because those payments WERE made for our granddaughter (just not to us) under her SSN. I don't want our return to get flagged nor do I want the IRS thinking we're committing fraud!

I apologize in advance if I made this more confusing than needed *sigh*

[xmasbaby0 · Accepted solution]

So sorry for your family troubles.    You can get the full child tax credit since you have had your grandchild for 2021.   Those monthly payments issued from July to December were truly "advance" payments based on claiming a child on a 2021 tax return.   Depending on her AGI, your daughter might or might not have to pay back the monthly amount she received.   But that is not a problem for you.   She has to file a return and enter the amount she received.

YOU can get the full amount.   It will show up on line 28 of your Form 1040.   And you can also get the $1400 stimulus amount---which will show on line 30.

Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number. If your child was born in 2021make sure you said he lived with you the whole year.  There is an oddly worded question that asks if the child paid over half their own support.  Say NO to that question.

To claim a grandchild as your dependent

When you enter the child’s name in Personal Info, you will be asked “What’s your relationship to  [child’s name]?”  

           Choose “another person”

            a drop down menu will appear that lets you choose grandchild

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

Make sure you answer all of the questions in Federal Review before you file.

[Vanessa A]

You would answer it no since you personally did not get the advance payments.  The fact that your daughter did get the payments will not have any affect on your return.

[LaurieP7]

Thank you so much for all the info!!!

One quick question.... Do I need my daughter to complete a form stating that we can claim our granddaughter?

[xmasbaby0]

No.   You do not need any sort of form from your daughter.   One word of caution---since we do not know anything about your daughter........if she files a tax return for 2021 and claims the child even though you have been the one who has had her child---if she files first then your e-file will be rejected.   If that happens, you can still file your tax return that claims your grandchild but you will have to print, sign and mail it.

[LaurieP7]

I am worried about that even though she's told me she won't claim the baby.  

Thank you so much for your quick and informative replies, greatly appreciated!!!!

[LaurieP7]

Thank you!