Question
Why isn't the software requiring repayment of all the advance child tax credit payments when the child is not taken as a dependent on the 1040?
My client is divorced and he and his wife agreed to alternate taking the dependency exemption for their daughter on alternating years. My client received the child tax credit in 2020 as he is allowed the exemption for her in even years. The IRS sent him advance child credits in 2021 but he is not taking the exemption in 2021 so I don't think he is entitled to the credits. Why isn't Lacerte adding the entire amount to his 2021 tax bill?
