Claiming Children

Hi Nkbrewer,

If you claim the three children on your 2021 tax return as dependents, you are entitled to the newly expanded child tax credit, if qualified.

Based on your description, the previous caregiver must have claimed the three children on his/her 2020 tax return, and are receiving Advanced Child Tax Credit Payments in 2021 based on IRS estimate of the 2020 return.

Depending on the caregiver's filing status and income level, he/she may or may not have to pay back the excess Advance payments in his/her 2021 tax filing due to "repayment protection." Please refer to below link, questions/answers H4- H8 for various scenarios: full protection, partial protection, no protraction and how it is calculated.

https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-h-reconciling-your-advance-child-tax-credit-payments-on-your-2021-tax-return

Hope this helps.