Divorce with EIP & Child Tax Credits

[BVB3]

My ex-wife and I divorced in 2021. In 2020 we filed married and this year we will be filing separately. I am filing Head of Household and have custody of our two children. When we received the Child Tax Credits I received all of the payments. When IRS Letter 6419 came we each received one which shows a split of payments @ $1500 each to her and I. Do I need to claim the $3000 total or just the $1500 it shows. What does she need to claim or not claim. The 3rd EIP payment we split accordingly between us. So should I list $2800 on my taxes or just $1400, my share? Then what should she claim.

[Critter-3]

Since you filed a joint return the IRS considers each of you to have gotten 1/2 the advance no matter how you actually split the money.   YOU  need to enter ONLY what is on your 6419 letter  and the ex must do the same even if they will not be claiming the kids on the 2021 return.   YOU  will get the full credit (less your portion of the advance) on your return  and the other person may need to pay back all or some of the advance on their return.   Now if you are nice you can pay them for their shortage since you will get the actual credit  but you are not required to make them whole. 

[DMarkM1]

First on the child tax credit entries.  As @Critter-3 states, you will enter only the payments in your letter on your return (1500).  On her return she will list the other $1500. Since she has no dependent children on her return this will be an overage for her that she has to pay back. 

You can share the extra $1500 payment you received with her to help cover her overage if you wish.  Your total child tax credit will only be reduced by the amount you put in from your letter.  Ultimately you will receive the entire child tax credit for two children.  

For the EIP you would also only put in what you received.  Any remaining stimulus amounts that you qualify for will be added to your refund.  The same will be true for your ex-spouse.