Child tax Credit

[elias-tnez]

In 2021 My ex and I got divorced. However they based the advanced child tax credit on 2020 when we were still married. We always filed jointly under my name. We have two children under the age of 18. Per our agreement we will each claim one child on our taxes separately. During 2021 I received the advanced child tax credit for both children but gave her her portion of it, $300 each month. How do I show this on my tax filing for 2021 or am I going to have to pay all that back since everything was under my name? I do make just barely under the threshold of 75k to claim the credit also. 

[RaifH]

The IRS should provide a Letter 6419 which will state all the advanced child tax credit payments that you received. In the case of married couples, they are providing each spouse with a letter that states half the benefits received. 

In your situation, that should work out perfectly. As a couple, you received $600 per month for a total of $3,600 of advance credit. Your share of that should be reported as $1,800 on Letter 6419 and your remaining credit of $1,800 will be added to your 2021 return provided you meet all the requirements for claiming the Child Tax Credit and your child is under the age of 6 (for age 6-17, the maximum total credit is $3,000). 

If you have not yet received Letter 6419 I would hold off on filing just to verify that the IRS matches your accounting to avoid any delays in the processing of your return. To enter the advanced payments into TurboTax:

1. In your TurboTax return search for Child Tax Credit and Continue.
2. Answer the question on the Let's start with where you spent the most time in 2021 screen and Continue.
3. On the Tell us about any advance Child Tax Credit payments screen, answer Yes, enter the amount from your letter in the Tell us about any advance Child Tax Credit payments box, and Continue.
4. Answer the questions on the following screens, confirm your amount on the Let's recheck your advance Child Tax Credit payments screen, and Continue.