As I understand it, the new stimulus bill boosts the credit significantly for one year (tax year 2021) for people with essentially the same incomes as those qualifying for the full stimulus checks. In addition, the enhanced credit will be fully refundable, meaning recipients will get the full amount by check for any portion not used to offset federal income tax liability. And in a final wrinkle, which may only be clarified in regulations, the bill authorizes the IRS to make advance “periodic” payments of the credit possible beginning in July, so that families don’t have to wait on filing a 2021 tax return next year, and then wait on the refund.
My question is regarding separated parents who split child related filing status and tax credits on an alternating yearly basis. If one parent claims the child tax credit on thier 2020 taxes, will that parent then start recieving the “advanced periodic payments” this July for which is intended for the 2021 tax year (and thus the other parents year to claim these credits)?
