The Advance Child Tax Credit Payments are a provision that offers financial relief to millions of American families. But what happens when parents share custody of one or more children? Keep reading to discover the answer.
What Are the Advance Child Tax Credit Payments?
The Advance Child Tax Credit Payments are a measure included in the American rescue plan to offer financial relief to American families affected by the COVID-19 pandemic.
Since the last 15 of July, families have been receiving monthly payments of $250 or $300 for each qualifying child under the age of 17. The families that will receive the total amount are those who earn up to $150,000 for couples or $112,500 for families with a single parent.
What Parents Who Share Custody Should Know About the Advance Child Tax Credit Payments
When it comes to parents who share custody, the most obvious question is: Who would receive the Advance Child Tax Credit Payments?
In that case, the parent who should receive the payments is the one who claimed the Child Tax Credit on their 2020 tax return, or on their 2019 return, if their 2020 return has not been processed yet.
If a non-eligible parent receives the Advance Child Tax Credit Payments, it’s advisable to unenroll to stop receiving the payments. To unenroll, just visit the Child Tax Credit Update Portal on the IRS website.
If you receive the Advance Child Tax Credit Payments without being eligible, it’s important to unenroll because otherwise, you will have to return those payments when you file your tax return next year.
Contact the Experts at JT Tax Services
Do you need help figuring out how the Advance Child Tax Credit Payments? JT Tax Services is here to help! We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.
We are located in Oxnard, California. Contact us today by email (firstname.lastname@example.org), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services.