how to return improper received advanced child tax credit?

[rock7791]

Hi, all

My ex received advanced child tax credit last year, but in reality, I need to claim my son under my name for this year's return. I wonder how can she return the money that was received?  I found this on the IRS website -

If the payment was a paper check and you have cashed it, or if the payment was a direct deposit:

• Submit a personal check or money order payable to "U.S. Treasury" to the appropriate IRS location listed below. In the memo line, write “AdvanceCTC” and the Social Security number or Individual Taxpayer Identification Number of the recipient of the check or deposit.
• Include with your personal check or money order a separate, brief, written explanation stating the reason for returning the payment, including whether you want to unenroll from future monthly advance Child Tax Credit payments
• https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-t...

Does she need to say anything on her 1040 tax form? or report improperly received tax credit as an income? She doesn't qualify for repayment protection.

Thanks!

[JillS56 · Accepted solution]

No.  Your spouse should not send the money to the IRS.   When your spouse files their tax return for 2021 they will be asked if they received Advanced Child Tax Credit.   They will enter in the box how much and how many children she received in tax credit.   Since you are claiming the child(ren) on your tax return then she will not have them on her return and this will cause TurboTax to show that she has to repay this amount to the IRS.  Depending on the amount of her tax liability plus the tax credit less the amount of withholdings, she will either get less of a refund or actually owe. 

Reconciliation of the Advanced Child Tax Credit is being handled through the filing of tax returns.  

2021 Updated Child Tax Credit FAQs