Child care credit and economic impact payment

[wkbinpa]

My wife and I are divorced with one child (age 8).  We each have 50% custody and alternate years claiming the child.  2020 was my year to file with the child. Accordingly, I received the economic impact payment for myself and the child ($2800), and also received the advanced childcare payments totaling $1500.

In doing my taxes, turbo tax assesses me $920 additional tax on the childcare payments.

I would assume, since it's my X'es year to file with the child she should claim the entire $3000 credit?

Additionally, regarding the additional economic impact payment of $1400 (for the child), should I be adjusting that somehow or just paying half to my X (which I already did)?

[JillS56 · Accepted solution]

If you received the Advanced Child Tax Credit and should not have since you would not be claiming your child in 2021 you will have to pay back the amount that you received.  Your ex will receive the full $3,000.   See the link below for information on the Advanced Child Tax Credit.

No, you should not adjust the economic impact payment.  Your ex's return will show that she should have received a total of $2,800 if she is claiming the child.   She should report that she received the full $2,800 and it is up to you if you split the payment with your ex.

2021 Child Tax Credit and Advanced Child Tax Credit

[wkbinpa]

Thanks Jill, appreciate your excellent reply.

wkbinpa