Child tax credit

[Gbella16]

I have 50/50 shared custody with the other parent. Pursuant to our agreement we alternate the tax returns with Father claiming child on odd years and mother claiming child in even years. 
In 2021, I began receiving child tax credit deposits into my bank account in the amount of $300 every 3-4 months.

1) As I am not supposed to claim my child for 2021, do these disbursements belong to the other parent?

2) will the other parent still be able to claim our child on his tax return for year 2021?

3) is this the new norm for receiving child tax credits? 
4) if the answer to #3 is yes, how can we set it up so the other parent receives the child tax credit for his corresponding years directly to his bank?

[Donna F 77]

This scenario is quite common.  The IRS had a Child Tax Credit Portal available to report that you would not be claiming that dependent for 2021.  You could've input that info and stopped that advance child tax credit payments.  (1)  So, technically, the other parent should've been the one to receive the payments.  The other parent also could've used the Child Tax Credit Portal to inform IRS that he/she would be claiming the child for 2021 to get the payments started.  (2)  The other parent may claim the full amount of his/her allowable Child Tax Credit for that child when he/she files the 2021 tax return.  (3)  So far, this system of sending out advance child tax credit payments has only been implemented for 2021 tax credits.  Stay tuned to the news for any legislative updates.  (4)  If the advance child tax credit payments get set up for 2022, you and the child's other parent will need to visit the Child Tax Credit Portal on IRS.gov to enter the pertinent information (which dependent's each of you will actually be claiming for 2022).

[Gbella16]

So far this year, I have received $2,100 in advance child tax credit from the IRS, however, when I claimed our child in 2020, per my tax return, I only received $808 for a child tax credit. This is a huge difference. Why is the father receiving $2,100 while I only received $808 in 2020?

[Donna F 77]

The maximum child tax credit in 2020 was $2,000.  It also could've been divided up between "Child Tax Credit" and "Additional Child Tax Credit" on your tax return. 

For 2021, the child tax credit is a maximum of $3,000 for children 6 and over.  The credit is $3,600 for children under 6.  Generally, the advance child tax credit payments are either $250 or $300 so I'm unsure how the $2,100 amount was tallied up.  If you and the father have both received $2,100 for the same child in advance child tax credits, it will need to be reconciled on both tax returns so that only the parent claiming the child for 2021 actually gets the credit.