Advance Child Tax Credit Payments | What to Know for Divorced Parents

The advance child tax credit is a part of the American Rescue Plan that was signed into law in March by President Biden. The American Rescue Plan bumped the child tax credit from $2,000 to $3,000 per child for the 2021 tax year, plus, an additional $600 benefit for children under the age of 6. Half of the credit will be sent to parents in advance payments on a monthly basis from July to December of 2021. These payments are expected to average $250 per child or $300 per child under the age of 6. 

As a divorced parent, you may be curious as to who will receive these advance child tax credit payments between you and your co-parent. If you have any further questions regarding child tax credit payments, reach out to our experienced family law attorney who will provide you with the legal knowledge necessary to come to a conclusion that is best for everyone involved.

Who is eligible for advance child tax credit payments?

Eligibility for the advance child tax credit payments is based on income. 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 up and married couples with an income of $170,000 and up filing jointly. However, these families are still eligible for the child tax credit, just not for the advances.

Who will get the advance child tax credit payments between divorced parents?

The parent who has physical custody is also referred to as the custodial parent. Physical custody refers to the parent the child spends more nights of the week with. They are responsible for providing the child with a stable home, food, clothing, education, and other basic necessities. If you are the custodial parent, you should receive these child tax credit payments if you qualify.

However, if you and your co-parent alternate the years you claim the children as dependents, an issue may arise as to who should receive these payments. If you have run into a similar situation, it is important that you reach out to an experienced family law attorney who will provide you with the proper legal knowledge to come to conclusion.

If you have further questions regarding the child tax credit payments between divorced parents, reach out to our experienced family law firm today to learn more about our services and how we can assist you.

Contact our experienced Bergen County firm

At Townsend, Tomaio & Newmark, our attorneys have extensive experience helping clients to understand and protect their legal rights before, during, and after the divorce process in towns across New Jersey and Bergen County, including Hackensack, Ridgewood, Paramus, Teaneck, and Fort Lee. To speak with our team of divorce lawyers today in a free and confidential consultation regarding your concerns about your divorce, please contact us online, or through our Hackensack, NJ office at (201) 397-1750.

Read Our Latest Blog Posts

  •  What is a Cohabitation Agreement?
  •  Angela M. Scafuri Nominated Vice Chair of NJSBA Women in the Profession Section
  •  What Are The Best Ways To Save Money in an NJ Divorce?