Child tax credit and divorce
My daughter is divorced. She has a four year old daughter. Her ex-husband got to claim the child as a dependent on his 2020 taxes. My daughter gets to claim her for 2021. How does the advance child credit impact this situation? He’s claiming he gets the money. I think it should go to my daughter.
Terry Says
This is an advance on the 2021 return. If she gets her daughter as a dependent on that return, then the checks should go to her. BUT, they may be sending them out in advance based on the dependency data on the 2020 return. So he may get advance checks. The IRS says they recognize this and will figure it out next Spring when 2021 returns are filed. But he can count on the IRS challenging his return next year. (I have passed this question on to my contact at the IRS for a more specific answer, and if there’s an update I will get back to you!)