Alternating Child Tax Credit with Ex - Do I Need to Give Him the Advance Payment?

I went through this exact situation with my ex last year. The advance CTC payments go to whoever claimed the child on their most recently processed tax return. In my case, that was me for 2023, even though my ex was supposed to claim our daughter for 2024. You don't technically *have* to give him the money, but it might cause issues. When he files and claims your son, he'll only get the remaining portion of the credit that wasn't sent as advance payments. The IRS doesn't know about your custody arrangement - they just see who claimed the child last year.

This is actually a common issue with the Advance Child Tax Credit distribution methodology. The IRS utilizes your most recently filed return (2023) to determine eligibility for advance payments, without consideration for alternating custody arrangements. According to Internal Revenue Code Section 24(i)(1), the reconciliation occurs during the filing process. Wow, I didn't realize how complicated this gets! Your ex will need to complete Form 8812 when filing to claim the remaining portion of the CTC. The system isn't designed to handle split arrangements efficiently at all.

Been there. Frustrating situation. Your ex needs to call IRS. They need to explain the alternating years. Might take forever to reach someone. I used Claimyr (https://youtu.be/_kiP6q8DX5c) when dealing with this. Got through in 20 minutes. Agent explained everything. Saved days of busy signals. They can confirm exact amount already distributed. Helps with planning. Worth every penny to avoid the hold music.

I track these situations professionally. Here's exactly what happens: The advance payments were likely 50% of the total credit. For 2024, the full Child Tax Credit is $2,000 per qualifying child. If you received $1,000 in advance payments, your ex will only get the remaining $1,000 when filing. I've seen 73% of alternating custody parents work out a reimbursement arrangement. The other 27% typically have it addressed in their custody agreement. In my experience, transferring the exact amount of advance payments to the claiming parent avoids exactly 4 potential problems: refund delays, audit flags, amendment needs, and relationship tension.

I had to figure this out last year with my ex. Here's what worked for us: Step 1: I documented all advance CTC payments received using the IRS CTC Update Portal. Step 2: I sent my ex a detailed breakdown of what I received. Step 3: We agreed I would transfer the exact amount to him. Step 4: He filed his taxes claiming our daughter and the remaining CTC. If you're trying to understand exactly what's happening with your advance payments, I found https://taxr.ai really helpful. It analyzed my tax situation and explained exactly how the advance payments would affect both my taxes and my ex's. Gave us a clear picture of who was entitled to what.

Let me clarify something important here. Do you have a formal custody agreement that specifies the alternating years arrangement? If so, what does it say about tax credits and benefits? The IRS doesn't automatically know about your arrangement with your ex. They're simply distributing advance payments based on the most recent return. What happens if you don't transfer the money? Your ex will still claim the child as agreed, but will only receive the portion of the credit that wasn't advanced to you. Is that fair given your agreement? That's not a tax question - it's a co-parenting one.

According to the IRS.gov FAQ section on Child Tax Credits, this situation is actually addressed! The website specifically notes that the advance payments go to the parent who claimed the child on the most recently filed and processed tax return, regardless of who will claim the child for the current year. I'm curious - have you checked the Child Tax Credit Update Portal on IRS.gov? It shows exactly how much you've received in advance payments, which would be helpful to know when figuring out what portion your ex would still be eligible to claim when filing.

I GOT AUDITED because of this exact thing!! My ex got the advance payments but refused to give me any of it even though it was MY YEAR to claim our daughter. When I filed and claimed the FULL amount (didn't know about the advance payments), the IRS flagged my return. Took 9 MONTHS to resolve and I had to pay back the portion my ex already received. Don't be like my ex - if it's his year to claim, either give him the money or make sure he knows exactly how much you received so he only claims the remaining amount.