Advanced Child Tax Credit and divorce

[Jennifer_Olivia]

I automatically received a full $3000 of the advance child tax credit into an older joint bank account.  I did not give my ex any of this money, since per our divorce decree I get to claim both children for the 2021 tax year.  The IRS's form 8812 that was mailed only has half this amount on it.  In researching this, I found that the IRS is automatically splitting this amount for each spouse.  What amount do I file with, the correct 3,000 that I did receive or the incorrect amount that the IRS put on the 8812 letter?

[JulieS · Accepted solution]

You should use the figure posted in the IRS letter as the amount you received for Advance Child Tax Credit. 

If your ex is eligible for the  Child Tax Credit (ACTC) during 2021, they may have to pay back some or all of the ACTC with their 2021 tax return. 

There is repayment protection based on income, but you won’t qualify for any repayment protection if your modified adjusted gross income (MAGI) is:

• $120,000 if you are married and filing a joint return or if filing as a qualifying widow or widower;
• $100,000 if you are filing as head of household; and
• $80,000 if you are a single filer or are married and filing a separate return.

The IRS is matching the advance payments to the taxpayer. If you enter an amount different from what your letter says, your refund will be delayed by the IRS.