Level 7

Question

How to report the Advanced Child Tax Payment received in 2021...but divorced as of Dec 31, 2021

Forum|Forum|4 years ago
January 16, 2022
4 replies
14 views

I have a client who received a $300 advanced child tax payment in 2021 (and he then opted out). He got divorced at the end of Dec 2021.

Do I report his one-half of the $300 payment on his "Single" 2021 tax return?

(He hasn't received IRS Letter 6419 in the mail yet)

ProSeries Professional

This topic has been closed for replies.

J

jeffmcpa2010

Level 10

were it I, seeing as returns can not be filed yet anyway, I would choose to wait for him to receive the 6419 Letter.

E

Ephesians3-14Author

Level 7

Right - I actually do plan on waiting for the 6419 - I have nothing to lose by waiting.

Still wondering how this is to be reported.

J

jeffmcpa2010

Level 10

Hopefully with another software update or two, it will be more clear to all of us.

BobKamman

Level 15

Might it not depend on who gets to claim the kid?

And I just noticed that the IRS updated its FAQ's on ACTC last week. They are really ahead of the game, one of the answers is updated to June 14, 2022.

https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-h-reconciling-your-advance-child-tax-credit-payments-on-your-2021-tax-return

I'm hoping I don't have a client who needs to use the "repayment protection" provision. Seems to depend on AGI and filing status.

Camp1040

Level 10

That is my thought, if your not claiming the child and receiving the CTC then no mechanism for reconciling the amount of ACTC.

Excerpt from the FAQ's:

Q L3. My child's other parent received the advance Child Tax Credit payments even though I will be claiming the Child
Tax Credit for our child on my 2021 tax return. Will I still be able to claim the full Child Tax Credit? (updated January
11, 2022)
A3. Yes. You will be able to claim the full amount of the Child Tax Credit for your child on your 2021 tax return even if
the other parent is received advance Child Tax Credit payments. The other parent should have unenrolled from receiving
advance payments, but their decision will not affect your ability to claim the Child Tax Credit.

K

KarinV

Level 3

I have a client who divorced in 2021 and the ex-wife got all the advanced child tax credit but the husband received an IRS letter for half of the advanced child tax credit because they filed jointly in 2020. The wife will be claiming the child for 2021 so that leaves him having to claim half and possibly pay back because he may not meet the payback protection. Hope updates help to clarify how to handle this situation.

Just-Lisa-Now-

Intuit Community Champion

If "he" got $300 wouldnt you report the $300 on the 8812?

His ex would report the deposits she received.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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