Essentially, beginning in July 2021, the Government started sending out payments in monthly installments for children under 17 years of age. Many families will start to receive monthly checks which could be as high as $300 per month.
The payments will be sent to the person who is eligible to receive a Child Tax Credit and who claimed the child in the last year that taxes were filed, either for 2019 or 2020. So if you are in a situation where you alternate claiming the children from year to year, this will likely affect you. Receiving the money now is an advance against the tax credit that may be claimed for the child when you file next year’s taxes. Depending on who claims the child, you could possibly be receiving advance tax credits for your ex’s refund, or vice versa.
If you are the person receiving the payments currently, my advice is to address the issue with your ex if your ex has the ability to claim the children in alternate years to see if you are able to work this issue out. If not, you can opt out of receiving these payments by following this link:
This will stop your monthly payments, but preserve your ability, or your ex’s ability, to receive the child tax credit the next time you file taxes.
If you have any questions, you can reach out and we will do our best to help.