Married Filing Separate and the Advanced Child Tax Credit ????

[Twin Turbo Z]

Here is the situation. Married couple always files MFS. One child. Father claimed the child in 2020 and received $1500 in advanced child tax credit. Received letter 6419 stating that fact. Here is the question. If I move the child to the mothers return can she receive the full $3,000 credit ? Based on the fathers income he would have to pay back only $564 of that $1500 that came in his name. Bottom line savings would be $964 by moving the child to the mother. I have read the faq's at the IRS site and there is nothing I can find that states you can not do so ? Or does the mother have to report she got $1500 on her return ? Its double dipping in a way and I dont think it should fly, but I cant find anything to the contrary. Similar to divorced parents who claim odd and even years, but a married couple. Thanks

[Lion]

Like Nike says, just do it.

[Dude]

Wouldn't the tie breaker rules deem the child should be claimed on the fathers return? https://apps.irs.gov/app/IPAR/resour...lp/tbrk09.html

[New York Enrolled Agent]

Wouldn't the tie breaker rules deem the child should be claimed on the fathers return? https://apps.irs.gov/app/IPAR/resour...lp/tbrk09.html

If the child is a qualifying child of both parents then the parents can make a decision as to which of them claims the child. The tie-breaker rules only come into play when the parents disagree and both want to claim the child.

[Twin Turbo Z]

If the child is a qualifying child of both parents then the parents can make a decision as to which of them claims the child. The tie-breaker rules only come into play when the parents disagree and both want to claim the child.

Thus the delima. I see nothing that states you can not switch who claims the child. The 6419 letter came in the fathers name, so he has to reconcile on his tax return that $1500 in Advanced CTC. Form 8812 has no line or instructions pertaining to this situation. Hate to file that way and have it held up for not being correct. I of course would explain the situation to the taxpayers, just in case I am wrong in the interpretation. Keep the comments coming. I cant find anything on this to verify we can file that way. And we will have many clients in the same situation.

[Dude]

Thus the delima. I see nothing that states you can not switch who claims the child. The 6419 letter came in the fathers name, so he has to reconcile on his tax return that $1500 in Advanced CTC. Form 8812 has no line or instructions pertaining to this situation. Hate to file that way and have it held up for not being correct. I of course would explain the situation to the taxpayers, just in case I am wrong in the interpretation. Keep the comments coming. I cant find anything on this to verify we can file that way. And we will have many clients in the same situation.

Yup, we're are dealing with algorithms. We are left to ponder does it process MFS with or without factoring in a contested return before applying the tie-breaker rules.

[Twin Turbo Z]

I agree with New York. "Tie Breaker" rules come into play when married taxpayers can not agree. So in my mind they do not apply to the situation. I've seen where this has been posted on other tax forums and the consensus favors allowing it. But an IRS clarification would be nice. Do not want many returns held up over this "gray area", but want to get our clients the most back. Maybe a phone call to the IRS is in order.

[TaxGuyBill]

over this "gray area",

Why gray area? Where do you see anything that would disallow it?

[Twin Turbo Z]

Why gray area? Where do you see anything that would disallow it?

From what I researched nothing states you cant do it. Just seems wrong. Thought I was missing something.