Divorced couple and advance child tax credit

[PATaxlady]

I have a couple with 2 children who filed jointly last year. They did receive that ACTC. This year they are divorced and each is claiming a child. I think that I just put the amount IRS said they received...his amount on his tax return and her amount on hers. One of the dependents is under 5. Am I doing this correctly?

[kathyc2]

That is not incorrect. However, if either of their incomes are low enough to qualify for safe harbor payback, they will receive more in total with the same parent claiming both. 

[Pacun]

PATaxlady, First decide where the children resided and if one of the parents qualify as HH. If the other parent made less than $45K, then you can have the HH claim both.  I think you will end up doing what you said you were going to do because $1,500 in my pocket is better than $3,000 on my ex's pocket.

[PATaxlady]

She does qualify for HH and the children lived with her. She has signed and 8332 so he can claim one of the kids, however he will have to repay based on his income from other years. He has not brought his information to me yet....so I am waiting.