Received Child Tax Credit & Share Custody? How To Navigate Tax Filing

Single mother working from home with son coming in to have his homework reviewed.
martinedoucet / Getty Images

If parents share custody of a child, the IRS determined which parent received the 2021 advance child tax credit payments based on the information on taxpayers’ 2020 tax returns, or their 2019 return if the IRS hadn’t processed the 2020 return. The parent who claimed the tax credit for a qualifying child on their most recent return received the advance child tax credit payments in 2021.

See: CTC Revival — Romney Fighting for Major Revisions and Bipartisan Support
Find: How Your Child Tax Credit Benefit Could Be Affected the Earlier You File

According to the IRS, an eligible parent who did not receive advance payments for a qualifying child will be able to claim the full amount for that child on their 2021 tax return, even if the other parent received advance child tax credit payments.

There was an option to unenroll from receiving monthly payments by using the Child Tax Credit Update Portal at IRS.gov. People who did not unenroll and received monthly payments during 2021 for a child they won’t claim on their 2021 tax return could have to repay those payments when they file, unless they qualify for repayment protection.

Make Your Money Work

To qualify for repayment protection, your primary residence must have been in the U.S. for more than half of 2021 and your modified adjusted gross income (AGI) for 2021 is at or below the following amount based on the filing status on your 2021 tax return:

  • $60,000 if you are married and filing a joint return or if you’re filing as a qualifying widow or widower
  • $50,000 if you are filing as head of household
  • $40,000 if you are a single filer or are married and filing a separate return

If your AGI is above these limits or if your main home was not in the U.S. for more than half of 2021, your repayment protection may be limited.

Explore: 16 Tax Tips for Single-Income Families
Teens & Taxes: Can I Declare My Teenager as a Dependent If They Have a Gig Job?

If you received advance child tax credit payments in 2021, you can compare the total amount you received with the amount you’re eligible to claim. You can view the total amount through your individual IRS Online Account. If you received joint payments with your spouse, each of you will need to sign into your own account to retrieve separate amounts.

Make Your Money Work

More From GOBankingRates

Share this article:

Make Your Money Work

About the Author

Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based out of Ohio where she attended The Ohio State University and lives with her two toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide.
Learn More

Best Bank Accounts for September 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.