Here's What You Need to Remember: Understand that these credits are advanced payments that are largely based off the IRS’ estimates on available data, such as overall income, marital status, and number and age of qualifying dependent children.

Millions of eligible parents with their $1,400 coronavirus stimulus checks in hand are now turning their attention to the new child tax credits.

And earlier this week, there was great news for these folks as President Joe Biden’s administration announced that nearly forty million American families will start receiving monthly direct cash payments beginning on July 15.

This newest cash windfall is due to Biden’s $1.9 trillion American Rescue Plan, which was able to expand child tax credits that generally allowed households to collect a credit of up to $2,000 for children under the age of seventeen.

Because of the devastating financial impacts of the ongoing pandemic, these benefits have been extended to even more families—and those affected are now eligible to claim as much as $3,600 per year for a child under the age of six and up to $3,000 for children ages between six and seventeen. This all means that for a family headed by a couple earning less than $150,000 or an individual making under $75,000, they can now get their hands on a $250 or $300 payment each month.

However, as the Internal Revenue Service begins the early stages of rolling out these payments, one particular question has often come up: For parents who share custody of a child, can they each receive the full child tax credit payment?

Keep in mind that with the first two stimulus checks, non-married parents who share joint custody of a child could, in fact, each receive a payment for the same child if they alternate years claiming the dependent on their respective taxes.

But with Biden’s new legislation, Congress closed that loophole for the third round of stimulus checks—and it appears that the same will hold true for the child tax credit payments.

Be aware, though, if one parent mistakenly claims a dependent this year, he or she may be on the hook to repay any difference in the final amount. Also, if one’s financial situation changes throughout the year, that could also trigger an overpayment of the credits.

Understand that these credits are advanced payments that are largely based off the IRS’ estimates on available data, such as overall income, marital status, and number and age of qualifying dependent children.

In an effort to combat this, the IRS has announced that a portal will be launched by July 1 for the child tax credit payments, so that taxpayers’ information can be added or updated more conveniently.

“Eligible taxpayers who do not want to receive advance payment of the 2021 Child Tax Credit will have the opportunity to decline receiving advance payments,” the IRS stated.

“Taxpayers will also have the opportunity to update information about changes in their income, filing status or the number of qualifying children. More details on how to take these steps will be announced soon,” it added.

Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn. This article first appeared earlier this year.

Image: Reuters.