What to Know About Advance Child Tax Credit Payments

As a divorced parent, you may be wondering who will receive advance child tax credit payments between you and your former spouse. Reach out to our experienced family law attorney today for legal advice regarding this complex situation. If you have any further questions regarding advance child tax credit payments, who qualifies for these payments, and who should receive them between divorced payments, continue reading.

What is the advance child tax credit payment?

The advance child tax credit is a part of the American Rescue Plan which bumped up the child tax credit to $3,000 per child as well as an additional $600 benefit for children under the age of 6 for the 2021 tax year. This plan was signed into law in March by President Biden. Half of the credit will be sent to parents in advance payments monthly from July to December 2021. These payments will average $250 per child or $300 for children under 6. 

Who is eligible for advance child tax credit payments?

Eligibility for advance child tax credit payments is income-based. 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 17 and under are eligible for full credit. The credit ends for individuals earning $95,000 and married couples with an income of $170,000 or more filing jointly. 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?

Physical custody is awarded to the parents with whom the child spends more nights of the week. They are also responsible for providing the child with a stable home, clothing, food, education, and more basic necessities. This parent is also referred to as the custodial parent. However, in some cases, the parents can split physical custody equally where the child spends equal nights between the two parent’s homes.

The custodial parent will generally claim the child for tax purposes. If you are a custodial parent, you should receive these payments as long as you qualify for advance child tax credit payments. However, there are some circumstances that may complicate this process. For example, some divorced parents might alternate their years of claiming the child as dependents. If you have found yourself in a similar situation and are struggling to determine who should receive these payments, it is recommended that you reach out to an experienced family law attorney who will help you rectify the situation and come to a conclusion that is best for everyone involved.

If you have any further questions regarding advance child tax credit payments, reach out to our experienced New Jersey family law attorney today.

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If you require strong legal representation for matters of divorce and family law in Rumson, Monmouth County, or anywhere in New Jersey, contact The Law Offices of Paone, Zaleski & Murphy to schedule a consultation with one of our experienced attorneys today.