The advance child tax credit is a part of the American Rescue Plan which bumped child tax credit from $2,000 to $3,000 per child, plus, an additional $600 benefit for children under 6 for the 2021 tax year. This plan was signed into law in March by President Biden. Half of this credit will be sent to parents in advance payments from July to December of 2021 on a monthly basis. You can expect these payments to average $250 per child or $300 per child under 6. You may be wondering who will receive the advance child tax credit payments between you and your former spouse if you are a divorced parent.
Continue reading to determine who will receive the payments between divorced parents and why. If you have any further questions regarding advance child tax credit payments, do not hesitate to reach out to our experienced family law attorney. We would be happy to help.
Who is eligible for advance child tax credit payments?
Who is eligible: Families with 2020 or 2019 adjusted gross income of less than $75,000 for single parents and $150,000 for a married couple filing jointly with children under 17.
The credit ends for: Individuals earning $95,000 and up and married couples with an income of $170,000 or more filing jointly. These families are still eligible for the child tax credit, but not the advances.
Who will get the advance child tax credit payments between divorced parents?
Physical custody refers to the parent the child spends the most nights out of the week with. They are also responsible for providing the child with basic necessities such as a stable home, food, clothing, education, and more. The parent with physical custody is also referred to as the custodial parent. It is possible for both parents to split physical custody equally.
The custodial parent will also claim the child for tax purposes. The custodial parent should receive the child tax credit payments if they qualify. However, a situation that might complicate this is if divorce parents alternative the years they claim the child as dependents.
If you are in a similar situation and are having difficulty determining who should receive these payments between you and your former spouse, it is important that you reach out to an experienced family law attorney who will provide you with the legal knowledge to come to a conclusion.
If you have any further questions regarding advance child tax credit payments, reach out to our experienced family law firm today.
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If you require strong legal representation for matters related to divorce or family law, Haber Silver Russoniello & Dunn is here to help. We proudly represent clients in Morris County and throughout the state of New Jersey. Contact our firm today to schedule a consultation.