ACTC Sanity Check

[Patrick Michael]

This falls into the "seems to good to be true" category and I need a sanity check.

Unmarried couple, 2 biological children.  All 4 lived together the whole year.  Mom claimed both kids last year.  She received $4,200 in stimulus money and $3,300 in ACTC in 2021.

This year father claims both kids, he gets $2,800 in RRC for the children, and $6,600 CTC.  Mom does not have to pay back the ACTC because her income is below $40,000.

There is no tie breaker issues as the parents agree on who gets to claim the children.

Am I missing something here? 

[Gail in Virginia]

I think that is the way it works. 

[GLJEANNE]

It's too bad the IRS couldn't create some process for this, as I'm sure it's common with unmarried and divorced parents.  Some way for one parent to opt out and the other opt in.  But at this point, not much we can do.

If Congress ever gets its act together (ha!), and extends the ACTC, I hope they do so with a better process.