You will claim the children like you would normally for 2021. If you are not the custodial parent then Form 8332, signed by the custodial parent, must accompany your return for the child that is claimed every other year.
The fact that the other parent received the advanced child tax credit (ACTC) means that they must report those payments on their tax return. This could result in an amount that must be repaid to the IRS. The IRS letter 6419 will be issued to that parent so it's important to use this information on their tax return. Since that parent received the money, this would mean that parent will have to repay the advance portion they received. The full amount of the credit ($3,000 per child or, if the child is under 6 years of age $3,600) will be claimed on your tax return.
Information for the other parent, the one who received the advance follows for you to understand what happens on their return.
Fortunately, the IRS is offering repayment protection. This is an income-based program that forgives some or all of what you’d owe. We’ll check for this automatically if you're in this situation.
Repayment protection is an income-based program that reduces the amount of excess advance Child Tax Credit payments you have to repay.
Full repayment protection equals $2,000, multiplied by the following:
The number of qualifying children that the IRS took into account when estimating your advance Child Tax Credit payments, minus
The number of qualifying children you’re claiming on your 2021 tax return.
To be eligible for full repayment protection, your adjusted gross income (AGI) for the 2021 tax year must be at or below the following:
- $60,000 if you are married and filing a joint return or if filing as a qualifying widow or widower;
- $50,000 if you are filing as head of household; and
- $40,000 if you are a single filer or you are married and filing a separate return.
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