ACTC

Forum|Forum|4 years ago
February 22, 2022
2 replies
18 views

Hopefully someone can enlighten me here. Client received stimulus payment of 2800 for her and child. Client received 1800 for ACTC payments. Client lives with boyfriend, father of child, and he qualifies for HOH. Can client not claim child and it shows no repayment of ACTC because of low income and Father chooses to claim child and receive the 1400 stimulus for child and the full 3600 CTC?

ProSeries Professional

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Camp1040

Level 10

Is mom eligible for EIC? and is she going to file to claim EIC?

C

CRM2182Author

Level 5

Mom is eligible for EIC. Unsure depending on dads income.

rbynaker

Level 13

It depends on Dad's AGI but probably yes.

C

CRM2182Author

Level 5

So why wouldn't most unmarried people with kids, who get along, have the other parent claim child who didn't receive the ACTC so they are getting more money back and not having to repay? It seems like the ACTC wasn't well thought out.

rbynaker

Level 13

It's situational for ACTC. One spouse has to have pretty low income to avoid repayment. If they're in a CP state, then MFS will basically average their incomes. MFS can have other drawbacks (IRA deductibility limits, dependent care expenses, tax rates, etc.) For RRC/EIP with larger families it ends up being a pretty remarkable difference.

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