Form 8812 for taxpayer who was MFJ in TY2020, but now files single and received the ACTC

[ejdtaxman]

I'm sure someone probably already posted about this, but the search module is so terrible, I can't find it. And I'm not going to spend any more time looking. 

Facts: 

Client filed MFJ with his wife for TY 2020. They claimed 3 dependents and received the CTC. 

They received 5 payments of $750 each in 2021 for the ACTC (250 x 3 kids)

Client is now divorced and will file separately with only 1 dependent. 

I only know he got the advance payments in that amount because he looked at his bank statements from last year. He probably did get letter 6419 but says now he doesn't have it (suspect wife has it and they don't talk, so that's that). 

My issue now is I have no idea what amount to put for how much he received because the number they got is based on a different filing status and factors in 2 people and now he is by himself. 

I know IRS was sending separate letters to taxpayers that filed jointly last year that received the ACTC. They always seem to be for the same amount, so I assume they are taking total payments for the year and dividing them in half for each spouse? Based on this I would put $1875 since the total they got is $3750 (750 x 5) but I have no idea if this is correct. 

Or would I put the entire $3750? 

And yes, client tried checking on the IRS portal and was unable to retrieve any info after making an account. 

[dkh · Accepted solution]

Why only 5 payments ?  There should be 6.   Did you look at his IRS account info ?   Hard to believe nothing would be there regarding the ACTC payments.    You report half of the total for your client and half of the total number dependents it was based upon on the F8812.

edited to correct my information on #of dependents - it should be total not half

[ejdtaxman]

I have no idea. He told me 5 and I assume he is correct. 

I have not looked at his IRS account info. I don't have access because I am not him. However, like I said, he wasn't able to pull any info from the website so it was probably pointless. 

Anyway, thanks. I'll do that. 

[rbynaker]

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@dkh wrote:

Why only 5 payments ?  There should be 6.   Did you look at his IRS account info ?   Hard to believe nothing would be there regarding the ACTC payments.    You report half of the total for your client and half of the total number dependents it was based upon on the F8812.

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I agree with most of this.  Why not 6 payments?  If the first payment went to the ex then he'll need to chase her for that money, the IRS only knows how much they sent out to his SSN, not who spent it.  For repayment protection, going from MFJ to S you would enter the full number of dependents listed on the 6419 letter, not half.  It's likely his 6419 letter was mailed to the ex-wife's address.

Unless your client wants to wait a while for their refund, I wouldn't be guessing at numbers.  Have your client get an IRS account.  Just like the old Prego commercials, "It's In There!"  I'm not sure what the IRS is doing now with the big stink about ID.me.  My account is pre-ID.me so I just had to have a cell phone in my name for authentication instead of sending a picture of my driver's license through the Internet.  Either way, you have one PITA now (walking your client through setting up an IRS account) instead of 9+ months of PITA later (when the client keeps pestering you while their return is stuck "in processing" because the numbers the IRS was expecting were not the numbers that went onto the 8812.)

Ah what a fun year we're having.

[ejdtaxman]

Last year when the RCR numbers on returns were wrong the IRS just reduced the refund by the amount claimed. 

I suspect they would just do the same this year? 

Either way I am not getting into this with client. I offered to log in using his info if we wanted to give it to me and instead he just gave me the numbers from his account. 

There are plenty of people that didn't get all 6 payments for one reason or another. I'm going with what he told me. 

Even if I have to follow up later, I'll just bill him for for it. Need to finish up and move onto clients that generate a bigger fee. 

[rbynaker]

That wouldn't be my approach, but honestly, I can't fault folks for taking this path.  If the clients don't want to put in the effort to get you the right data, it hardly makes sense for you to care more about their tax return than they do.

[dkh]

There are plenty of people that didn't get all 6 payments for one reason or another. 

I've not had any clients that did not receive all 6 payments.  

I'd ask client to log into his account while at your office either on laptop, a workstation at your office, smartphone - whatever so you can look at his account together.  What does he have to hide -  you do his taxes !

[ejdtaxman]

ok, well I have several. Some of them applied late for the payments online so they received less than 6. Some of them stopped receiving them for whatever reason so they also have less. 

I already said that HE MADE AN ACCOUNT and was ostensibly not able to get any info.

At this point, I don't care if what he told me is correct because that is the information he gave me and thats what I'm going with. I have already spent more time on this than I could justify based on his fee. 

[dkh]

 We obviously have a different client base.    

No need to shout at me.  Was just trying to help with suggestion on how you could view his IRS account. 

Hope you have a great tax season. 🙂

[abctax55]

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@ejdtaxman wrote:

Last year when the RCR numbers on returns were wrong the IRS just reduced the refund by the amount claimed. 

I suspect they would just do the same this year? 

**

There was NO ACTC last year - there was only EIP's  x  2.  

The IRS has already announced that incorrect ACTC amounts WILL delay refunds.

They have also said that for EIP's #3 - errors will be treated as math errors & refunds changed.

You are mixing the two up.

[ejdtaxman]

thanks, hope you have a good one too. 

I didnt mean to act as though I was shouting. 

I was getting frustrated because I hate spending a large amount of time on returns that should theoretically be easy, but get derailed due to stupid things like this. 

Like someone else said, I put about as much effort into the return as the client themselves is willing to put - once the amount of time exceeds that which the fee can justify, and the client is not willing to pay more, I consider myself done. 

Thats why I am not bothering to dive further into this. If he has trouble with the refund later and needs my help, he can pay me more at that point. 

[ejdtaxman]

I know there was no ACTC last year. You misread my response. 

I meant similar to last year, as in the RCR last year. 

If the ACTC issues delay the return, I'll deal with it then. This return should have taken me less than an hour and it is instead taking me a week. 

I've had enough.