What do I do when filing if me and my fiance live together with my daughter and want to swap on who is claiming her with last years Child Tax Credit and Stimulus?

[xdarkpunisherx]

I am currently in a predicament, and I am unsure on what to do with claiming our daughter this year. Me and my fiance live in the same household and we're trying to get the correct/max amount we can receive on this years returns.  Me and my fiance were working on our taxes and needed some help regarding the Stimulus and Child Tax Credits that were sent out last year.

Last year in 2021, I claimed my daughter on my 2020 tax return. I received the $2800 stimulus payment and also received the $1500 early Child Tax credit from claiming her in 2021.
This year in 2022, my fiance would like to claim my daughter on her 2021 tax return.

The issue I am seeing, is that if she claims our daughter this year return, she received an additional $1400 Recovery Rebate Credit which I'm not sure is the correct process since I received this credit and we live in the same house hold.

I was wondering if anybody knew what the correct process for this would be or if this is correct?

[Cynthiad66]

@xdarkpunisherx - You will owe the Advance Child Tax Credit received in 2021 if you no longer can claim the child.  Also, two people cannot claim the Stimulus for the same dependent. for the same year.  Honestly,  You may end up paying back Advanced Child Tax Credits and the Stimulus received unless, you claim the dependent for 2021. See further explanation below and on this link:  Eligibility Rules for Claiming the 2021 Child Tax Credit on a 2021 Tax ReturnEligibility Rules for C...

You may owe an amount of additional federal income tax up to the total amount of those advance Child Tax Credit payments.

If the total of your advance payments was greater than the Child Tax Credit amount that you are eligible to properly claim on your 2021 tax return, you may have to repay some or all of the excess amount on your 2021 tax return during the 2022 tax filing season – unless you qualify for repayment protection.

For example, if you received advance Child Tax Credit payments for a qualifying child properly claimed on your 2020 tax return, but you no longer have qualifying children in 2021, the advance Child Tax Credit payments that you received based on those children are added to your 2021 income tax unless you qualify for repayment protection.

To help prevent the need for repayment of advance Child Tax Credit payments, the IRS allowed recipients to take one of the following actions:

• Agree with your qualifying child’s other parent to allow you to claim that child for the Child Tax Credit for a second year in a row, 2020 and 2021. You may need to receive from the child’s custodial parent a signed IRS Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, and attach it to your 2021 tax return on which you claim the Child Tax Credit.
•  
• Use the Child Tax Credit Update Portal (CTC UP) to unenroll from receiving advance Child Tax Credit payments.

For more information regarding your eligibility for repayment protection, and how to reconcile your advance Child Tax Credit payments with your Child Tax Credit on your 2021 tax return, see Topic C: Reconciling Advance Child Tax Credit Payments and Claiming the 2021 Child Tax Credit on You..., and Topic D: Claiming the 2021 Child Tax Credit If You Don’t Normally File a Tax Return.