Client moved to Canada

[Jim-from-Ohio]

They are U. S. Citizens but few years ago moved to Canada.. were not in the states at all in 2021.  Do they still qualify for the child tax credit?  I think they do but wanted to double check.  Thanks

[dkh]

https://www.irs.gov/coronavirus/third-economic-impact-payment

according to IRS  - yes they would qualify but would need to file a tax return to receive EIP#3

[Terry53029]

Yes if they meet the qualifications, see link:  https://www.irs.gov/credits-deductions/individuals/child-tax-credit

[Jim-from-Ohio]

thanks.. I am working with the client.  she has some IRS letters and thinks she received EIP #3 already but I will see what IRS letters she has.. thanks again.  

[itonewbie]

Unless I've misread the question, it's about CTC. EIP3 has nothing to do with this.

You mentioned that your client moved to Canada a few years ago and, by that, my presumption is that his place of abode is outside the US for more than half of 2021.  That would mean that §24(i)(1) doesn't apply to your client and CTC is, therefore, not fully refundable.

This also means that your client should not have received any advance CTC payments (assuming his 2019/20 returns show that he was living overseas) but I have seen the IRS sending payments to taxpayers who are clearly ineligible.

Edit: Just want to add that your client will still be eligible for CTC so long as all the other conditions are met.

[dkh]

@itonewbie   I misread the post.  Jim was asking about CTC.  My mind processed it as an EIP question.

SORRY......

[itonewbie]

NP, @dkh.  Since you and the OP both mentioned EIP3, I just want to make sure I wasn't mistaken. 😊

[rcherenson]

No they likely don't. Living in the U.S. for more than half the year is a requirement. If it was disbursed, based on answering the required questions that they were not in the US at least 6 months, the IRS will claw it back.

I had a client in Japan who erroneously received $275 CTC in 2021 and had to pay it back with their taxes. He has lived in Japan for 5+ years, so it was weird he even received it. He was not entitled to it so had to pay it back.

[itonewbie]

---

@rcherenson wrote:

No they likely don't. Living in the U.S. for more than half the year is a requirement. If it was disbursed, based on answering the required questions that they were not in the US at least 6 months, the IRS will claw it back.

---

@rcherenson Agree the IRS apparently erred, on more than one occasion, in sending advance CTC payments to some who do not qualify.

As for repayment, that is really a function of how much CTC the taxpayer is actually entitled to and the advance CTC payments that were made.  Not every ineligible taxpayer who received advance CTC payment will need to pay the entire sum back.

[Jim-from-Ohio]

so on the ATCT, they did not receive it.  I was trying to figure out if they qualify for the CTC though.

[itonewbie]

@Jim-from-Ohio Yeah and you have your answer there. ☝️

[IRonMaN]

Speaking of Canadian, what was Intuit’s stock at today in Canadian dollars?