Child tax credit payments begin rolling out on July 15, 2021. What does that mean for parents who pay or receive child support?
Parents in low- to middle-income families will be eligible to receive tax credit payments monthly from July through December 2021. These payments are based on the incomes of the parents, the number of children, and the ages of the children.
Additionally, those eligible for these payments will receive one-half of the total child tax credit (which is usually credited when you file taxes) broken down into 6 monthly payments. Parents can opt out of these payments and opt to receive the full tax credit when they file their 2021 taxes.
As a result, The Arizona Supreme Court released some guidance for those with shared parenting plans and tax credits. The guidance help with the division of these payments and which parent is entitled to receive these tax credit payments. Click here for the guidance letter and here for the guidance breakdown.
https://www.azcourts.gov/Portals/201/Press%20Releases/2021/062321ChildTaxCredit.pdf