DIVORCE
Child Tax Credit Creates Issues for Divorced Parents
The child tax credit recently approved in the $1.9 trillion American Rescue Plan creates challenges for divorced parents. The tax credit – $3,000 per child ages 6 to 17 and $3,600 for children under 6 – can only be claimed by one taxpayer. Divorced parents who share custody sometimes come up with their own solutions to the child tax credits, such as alternating each year which parent claims the child for tax purposes. Since the IRS uses the most up-to-date information in their system, such situations could leave some single parents without any stimulus money for their children if they did not claim them last year. Megan Leonhardt, CNBC 03/11/2021