If you are a divorced parent, you may be wondering who, between you and your former spouse, will receive the advance child tax credit payments. Continue reading to discover who will typically receive such payments and what you should do if a situation has arisen that complicates the process. Reach out to our experienced family law attorney today to discuss the next steps to take regarding this tax credit.
What is the advance child tax credit payment?
The advance child tax credit is a part of the American Rescue Plan signed into law in March by President Biden. The American Rescue Plan bumped up the child tax credit from $2,000 to $3,000 per child, plus, an additional $600 benefit for children under the age of 6. Half of the credit will be sent to parents in monthly payments from July to December of 20201. Payments are expected to average $250 per child or $300 per child under the age of 6.
Who is eligible for advance child tax credit payments?
The eligibility for advance child tax credit payments is based on income. Families that are eligible include those who had an adjusted gross income of less than $75,000 for single parents and $150,000 for married couples filing jointly in 2020 or 2019 with children 17 and under. The credit ends for individuals earning $95,000 and up and married couples with an income of $170,000 or more filing jointly; though, these families are still eligible for the regular child tax credit, just not for the advances.
Who gets the advance child tax credit payments between divorced parents?
The custodial parent will generally claim the child for tax purposes. If you are the custodial parent, you should receive these payments. However, there are circumstances that may cause issues for divorced parents. For example, if divorced parents alternative their years of claiming the child as dependents, this may complicate the process. If you are in a similar situation and cannot come to a conclusion on who should receive the advance child tax credit payments between divorced parents, reach out to our experienced family law attorney. With the assistance of a family law attorney in your corner, they will help you to rectify the situation and come to a conclusion that is best for everyone involved.
If you have any further questions regarding this topic, do not hesitate to reach out to our experienced family law firm to learn more about our services and how we can assist you with any family law issues that may arise due to the advance child tax credit.
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