confusion on stimulus and ACTC

[tsmitten]

Here's the situation.... My daughter filed her 2020 taxes claiming herself and her son, her fiancé filled for himself and his daughter. They both received stimulus and ACTC for the kids. The fiancé shares 50/50 custody of his daughter. In April of 2021 they had a baby and moved in together. Fast forward to tax season for 2021. His ex is claiming his daughter this year per their agreement. Did new baby's birth not count toward the 2021 season because his daughter was claimed by her mother? That means she will be receiving the CTC and the 1400?

[xmasbaby0]

Since your daughter and her BF live together ---only one of them can claim the bio-child/new baby they have on a tax return.   If BF got the advance CTC payments and stimulus for his other child---who he is NOT claiming on a 2021 return (right?) --- he has to enter the advance CTC payments he received AND the stimulus he received on his own 2021 tax return.    If he claims the new baby--he does not get another full stimulus payment for her.  He would only get a partial CTC payment for the new baby because he already got CTC between July and December.

If your daughter files a 2021 tax return she can get the stimulus and CTC for the new baby.    You say your daughter also has a son----so she can claim her son too?  Or is her son being claimed by a different parent for 2021?  If she claims her son and the new baby she gets the other half of the CTC for the son too.

Oh... and you asked---yes, the BF's ex can still get the full CTC and stimulus when she claims the child on her 2021 return.

[Vanessa A]

Whoever claims the daughter for 2021 will be the one getting the Child Tax Credit for her. If the $1,400 was not received for the daughter in 2021, then again, the person claiming her on their tax return will get the $1,400 as well.

The new child does count for whoever is claiming the baby.  If your daughter is claiming the baby she will get the Child Tax Credit and the stimulus payment for the baby.  If her fiancé is claiming the baby, he will get the Child Tax Credit minus the half of the payments he received for his daughter plus the stimulus for the baby.