2021Advance Child Tax Credit

[Futch2010]

Have a client that received the Advanced Tax Credit in 2021 based on his 2020 tax return but now the mother will be claiming the child for her 2021 tax return. Should he report the tax credit even though he isn't showing a dependent on his return?

[jeffmcpa2010 · Accepted solution]

He needs to report the advance payments he received. He will not be receiving a credit, and the advance payments may be reducing his refund/ or causing him to write a check to pay it back.

edited to change "will be ... to "may be" as pointed out by PATAX

[PATAX]

@jeffmcpa2010 Jeff I am not sure if what you just said is accurate. I just went on to the IRS website for that issue and it says that it "could" be paid back but it also says that there's "repayment protection" or something similar to that and lists what the rules are. Maybe I'm wrong but I think you should go on their website now and take a look for yourself. Let me know what you find. Thanks...just my opinion.