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January 17, 2022
Question

ACTC

  • January 17, 2022
  • 1 reply
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How do i show on that although the ACTC for 2021 came to me, that I shared half with my ex wife?  I did not keep all of the money sent to me and she actually go half of it. How do i show that?

 

    1 reply

    January 17, 2022

    You cannot, on a tax return, indicate that you gave a portion of the Additional Child Tax Credit to your ex-spouse.  Presumably, you received the full ACTC because you had claimed the child as a dependent on your tax return, and were entitled to receive the ACTC.  While you may have an agreement, oral or in writing, with your ex-spouse regarding how the ACTC or any other credit is to be handled once received, such agreements do not have any relevance to the IRS.  With regard to completing your tax return, the taxpayer who is the custodial parent is the taxpayer entitled to receive the full amount of the ACTC.  Once the funds are received, how those funds are handled is entirely within the discretion of the taxpayer.   

     

    With regard to responding to questions in TurboTax regarding any credits received in 2021, whether such credits relate to the ACTC or any other credit, if you received them, you must include the full amount of the credit you received as you move through the TurboTax application even if you might have given some portion of the credit to your ex-spouse.    Recording the full amount of the credit received may not be consistent with the agreement you may have with your ex-spouse; however, the tax return must accurately reflect which taxpayer received the full amount of the credit. 

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