When it comes to divorced parents, taxes can be difficult to navigate. Read on to learn more about advance child tax credit payments in New Jersey and which parents may be eligible to receive these payments.
What are Advance Child Tax Credit Payments?
The advance child tax credit is part of the American Rescue Plan, created by President Joe Biden in March of 2021. The Rescue Plan bumped up the child tax credit to $3,000 per child under the age of 17. Additionally, there may be a $600 benefit for children under the age of 6 for the 2021 tax year.
Who is Eligible to Receive these Payments?
These payments are income-dependent. The full credit is available for children 17 and under in families with a gross income of less than $75,000 for single parents and $150,000 for a married couple filing jointly. The credit ends for individuals earning $95,000 and married couples filing jointly with an income of $170,000. It is important to note that these higher-income parents are still eligible for the regular child tax credit, but not the advances.
Types of Custody in New Jersey
There are two types of custody awarded to parents in the state of New Jersey: physical custody and legal custody. Physical custody is awarded to the parent with whom the child spends the most time. This parent, also known as the custodial parent, is mainly responsible for providing the child with necessities like a stable home, food, clothing, education, and more. The parent may still spend time with the other parent. Legal custody refers to a parent’s right to make important legal decisions in the life of their child. These decisions may involve healthcare, religion, education, and more.
Which Parent Receives Advance Child Tax Credit Payments?
Generally, the custodial parent will claim the child on their taxes. As a result, this parent will receive these payments, assuming they are eligible. But, this is not always the case. For example, some divorced parents take turns claiming their children on their taxes. If this occurs, the situation can become more complicated. Luckily, an experienced family law attorney can help you work through it.
If you have any questions or concerns about advance child tax credit payments, contact our firm today.
Contact our experienced Ocean City firm
Matters of divorce and family law require the attention and skill of an experienced attorney who will fight for your future. Not only is your financial well-being at stake, but in a divorce, both you and your children’s emotional well-being are at risk as well. If you need a divorce and family law attorney in Ocean County, New Jersey, please do not hesitate to contact the Law Office of Sarina Gianna, LLC today to schedule a consultation.