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Sashajade75
New Member

My son's father got to claim him for 2020 taxes. This year I claim him for 2021. How does that affect the new child tax credit payments and the refund for 2021 taxes?

 
9 Replies
xmasbaby0
Level 15

My son's father got to claim him for 2020 taxes. This year I claim him for 2021. How does that affect the new child tax credit payments and the refund for 2021 taxes?

You and the other parent need to coordinate what you are doing.    If the other parent will not claim the child at all for 2021 then he needs to unenroll for the automatic monthly child tax credits or he will end up having to pay them back at tax time.    You can sign up on the IRS portal when it is fully operational and get the advance CTC payments and then get the rest on your own 2021 tax return.

 

But.....we do not know what your arrangements are with your ex ---- do the two of you have a signed Form 8332?    That form affects what you both do in regard to claiming your child.   Who does the child actually live with?   The IRS says that the parent the child lives with at least 183 nights is the custodial parent.

 

Provide some more information here.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Critter-3
Level 15

My son's father got to claim him for 2020 taxes. This year I claim him for 2021. How does that affect the new child tax credit payments and the refund for 2021 taxes?

YOU can go online (when it is working) and put the child in for the advance CTC payments  OR   just get the credit on the 2021 return when you file it next year. 

 

What is more important is that dad   MUST OPT OUT NOW   of the advance payments so that he doesn't get caught with having to pay  them back on the 2021 return.  https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

AmeliesUncle
Level 13

My son's father got to claim him for 2020 taxes. This year I claim him for 2021. How does that affect the new child tax credit payments and the refund for 2021 taxes?

Depending on the circumstances, I would NOT recommend the father to "opt out" of the Advance payments.  But I would advise him to put it in a savings account because of the POTENTIAL he will need to repay the Advance payments.

 

If a person's income is under certain levels, the repayment may be reduced or eliminated, which is why I would not advise to "opt out".

Critter-3
Level 15

My son's father got to claim him for 2020 taxes. This year I claim him for 2021. How does that affect the new child tax credit payments and the refund for 2021 taxes?

This advance CTC situation is getting crazy ... I cannot believe that CONGRESS  would  give any kind of pass to not have to repay a credit that was not what it was meant for ... this way 2 people could legally get  some of the credit for the same child !!!    No wonder the national debt is climbing daily  since we keep giving out social welfare payments  hidden as  income tax refunds.  One more place for fraud in the income tax system.  

 

Read up on all the rules here :  https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-t...

AmeliesUncle
Level 13

My son's father got to claim him for 2020 taxes. This year I claim him for 2021. How does that affect the new child tax credit payments and the refund for 2021 taxes?


@Critter-3 wrote:

I cannot believe the IRS will give any kind of pass to not have to repay a credit that was not what it was meant for ... this way 2 people could legally get  some of the credit for the same child !!! 


 

It is not the IRS, it is Congress.  They are the ones that wrote it into law.

xmasbaby0
Level 15

My son's father got to claim him for 2020 taxes. This year I claim him for 2021. How does that affect the new child tax credit payments and the refund for 2021 taxes?

Let's please clarify-----there is a way that divorced/not married parents can alternate who claimed a child and each end up getting stimulus money for the same child. 

 

I have seen nothing to indicate that two divorced/not married parents can both get the CTC for the same child on a 2021 tax return.

 

If someone gets advance CTC payments for a child they cannot claim on a 2021 tax return they should end up repaying it or losing the credit when they reconcile it on their 2021 tax return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
AmeliesUncle
Level 13

My son's father got to claim him for 2020 taxes. This year I claim him for 2021. How does that affect the new child tax credit payments and the refund for 2021 taxes?


@xmasbaby0 wrote:

If someone gets advance CTC payments for a child they cannot claim on a 2021 tax return they should end up repaying it or losing the credit when they reconcile it on their 2021 tax return.


If a person's income is below certain amounts, the repayment of the Advance Child Tax Credit is reduced or eliminated.  See H6 through H8 in the link that Critter gave above.

 

Critter-3
Level 15

My son's father got to claim him for 2020 taxes. This year I claim him for 2021. How does that affect the new child tax credit payments and the refund for 2021 taxes?

Yes ... that info was just updated 6/14,  6/24 and 7/1 ...  it is hard to keep up with the ever changing information.

Opus 17
Level 15

My son's father got to claim him for 2020 taxes. This year I claim him for 2021. How does that affect the new child tax credit payments and the refund for 2021 taxes?

@Sashajade75 

If you do nothing now, then when you file your return, you would get a larger than normal refund, because the child tax credit is increased from $2000 to $3000 or $3600 depending on the age of the child.  

 

The IRS has indicated they will allow parents in your situation to enroll in the advance payments, which would be $300 per month starting in July or August (whenever they get their act together).  This does not change your credit or refund, it only changes when you get the money.  (Advance payments will reduce your refund.). The IRS site to enroll in advance payments is not ready yet, but will be here when it is ready.

https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

 

If the other parent does nothing now, they will probably receive advance payments.  This will reduce their tax refund, and they may have to repay the advance payments if they are more than any other refund they might be allowed from normal withholding and deductions.  They can unenroll from the advance payments at the IRS web site.  

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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