110 E. Schiller Street, Suite 320, Elmhurst, IL 60126

Weiss-Kunz & Oliver, LLC312-605-4041

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Elmhurst family law attorney for Child Tax Credit in DivorceOf the many complex financial issues that spouses may need to address during the divorce process, tax considerations can be among the most confusing. These issues can be a major concern for parents since the ability to claim children as dependents can affect the amount of taxes that a person will pay, the tax credits they can claim, and the tax refunds they will receive when filing their annual tax returns. Parents will need to be sure to understand how to address child-related tax issues both during the divorce process and after their divorce is complete. They will also need to understand how they will be affected by changes in tax laws, including the ability to receive advance child tax credits.

Advance Child Tax Credits for 2021

The American Rescue Plan Act, which was signed into law in March of 2021, allows parents to receive advance payments during the year for child tax credits that will be claimed on their tax returns for that year. For 2021, the child tax credit is $3,000 for a child under the age of 18 or $3,600 for a child under the age of six. Parents may receive monthly payments from the IRS between July and December of 2021, adding up to half of the total amount of the child tax credit. The remaining amount may be claimed on the parent’s tax return for 2021.

Children who will be 17 years old or younger as of December 31, 2021, will qualify for the advance child tax credit, and a parent may receive payments of up to $250 per month. For children who will be five years old or younger as of December 31, 2021, payments will be up to $300 per month. To qualify for the child tax credit, a child must have a valid Social Security number, and a parent must be able to claim the child as a dependent on their 2021 tax return. The tax credit is fully refundable, meaning that even if the amount of the credit exceeds the total taxes owed by a parent, the parent can receive a refund for the full amount of the credit. Even if a parent has an income of $0, they will be eligible to receive advance child tax credit payments, as long as they are eligible to claim tax credits for the child in 2021.

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DuPage County divorce attorney parenting time

Coming to the realization that divorce is in your near future is no easy task. Going into your marriage, you likely did not even consider that divorce would be a possibility. Whether you have been married for a few years or a few decades, the pain that comes along with an ending relationship can be like no other. The emotional turmoil can be even greater for divorcing parents. Not only does the decision to divorce involve you and your spouse, but you also have to consider the implications that ending your marriage will have on your kids.

Rarely does anyone come to the conclusion of divorce lightly. Perhaps you have had a challenging relationship for years on end, and you are finally realizing that being apart might actually be better for everyone involved—children included. While watching your parents get divorced is undoubtedly difficult for kids of any age, seeing your parents happier as the dust settles can be an even more important lesson for children: Your happiness in life matters. While the early stages and legal process of your divorce will be challenging as a parent, with the following information in hand, you can enter into the process fully prepared for what is to come.

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Illinois divorce attorney, Illinois family lawyer,All areas of divorce are difficult: The decision-making, the legal process, and adjusting to a new lifestyle. For couples without children, divorce is a life change that happens on an individual level. However, once children are involved, the ending of a marriage involves your own healing as well as your children’s emotions about the decision. Telling your children about the split is half the battle.

What Do I Say (and Not Say)?

The way you present the news is almost as important as what you say. The following tips provide help on what you should say to your children when having the difficult conversation and how you should say it.

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