Parents can unenroll from the October payment before the Oct. 4 deadline.
Thinking about unenrolling from the advance child tax credit payments? The next check is scheduled to arrive on Sept. 15, but it’s too late to opt out of that one. Fortunately, parents are able to opt out each month if their circumstances change during the rolling advance payments (The next deadline is Oct. 4). Opting out now means that families will get the rest of the money during tax time next year and can be sure to avoid needing to repay the IRS next year.
Here’s what we know about this year’s credit: The IRS is basing payments on 2020 tax returns, and a lot could have changed since then, so opting out may be the best option if you believe you no longer qualify for the money. The advance payments aren’t a tax deduction but an actual cash credit, and they won’t count as income on your tax return. The good news is that you won’t be turning down the credit if you opt out, you’ll just be delaying when you get it.
The advance child tax credit payments can be a big relief for parents who need the assistance. Some parents are getting up to $300 per kid If you decide to unenroll, you’ll first need to set up an ID.me account. There are a lot of changes from last year’s child tax credit that we’ll explain, including how to opt out ahead of October’s check. And if you decide to keep the advance payments rolling, here are some ways to spend your child tax credit money. This story was updated recently.
3 reasons parents would opt out
Here are some cases where unenrolling from the 2021 advance child tax credit program could be a good idea:
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Child tax credit: Everything we know
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What happens if parents opt out now
Those who choose to decline this year’s child tax credit installments (amounting to half the total) will still receive the same amount of money in the end, but are simply delaying when they receive it. So if you have a child who’s 5 years old or younger by the end of 2021 and your income meets the requirements, you’ll get $3,600 total when you file your taxes in 2022.
Be aware that if you unenroll from getting the monthly child tax credit payments this year, you won’t get your full payment — or any payment at all — until after the IRS processes your 2021 tax return in 2022. The total amount will then arrive with your tax refund or can be used to offset any taxes you owe at that time; you’ll be in a situation similar to people who have had to claim missing stimulus checks this year.
However, if you chose to receive monthly advances, you’d get six installments of $300 payments each month this year and another $1,800 with your tax refund next year instead. Keep in mind that if you take the money in advance now, it could lower your tax refund next year because you may get more money than what is owed to you. It will also mean you’ll have fewer deductions since you’ve already collected the credit.
You can use our child tax credit 2021 calculator to estimate how much you should get and see a breakdown of the monthly payments if you choose not to opt out and meet all eligibility requirements.
Child tax credit payment schedule
| Monthly check | Maximum payment per child age 5 and younger | Maximum payment per child age 6 to 17 |
|---|---|---|
| July 15 | $300 | $250 |
| Aug. 13 | $300 | $250 |
| Sept. 15 | $300 | $250 |
| Oct. 15 | $300 | $250 |
| Nov. 15 | $300 | $250 |
| Dec. 15 | $300 | $250 |
| April 2022: Second half of payment | $1,800 | $1,500 |
How can parents use the online IRS portal to opt out?
It’s too late to unenroll from the upcoming September check, but you have until Oct. 4 to opt out of future payments. Fortunately, if your circumstances change this month, you can opt out anytime in 2021 to stop receiving the rest of your remaining monthly advances, even if you’ve already received the first few payments To unenroll, the IRS said you must opt out three days before the first Thursday of the month in order to not receive the next month’s payment. See the chart below for more.
If you miss a deadline, the IRS said you will get the next scheduled advance payment until the agency can process your request to unenroll. According to the IRS, currently, if you unenroll then you can’t reenroll yet. Starting sometime in September, you should be able to opt back in.
Here’s how to unenroll:
1. Head to the new Child Tax Credit Update Portal and click the Manage Advance Payments button.
2. On the next page, sign in using your IRS or ID.me account. If you have neither, the page will walk you through setting up an ID.me account. You’ll need an email address, a photo ID, your Social Security number and a smartphone or tablet to verify your identity.
3. On the next page, you can see your eligibility and unenroll from the monthly payments.
Child tax credit payment unenrollment dates
| Payment month | Unenrollment deadline | Payment date |
|---|---|---|
| July | June 28 | July 15 |
| August | Aug. 2 | Aug. 13 |
| September | Aug. 30 | Sept. 15 |
| October | Oct. 4 | Oct. 15 |
| November | Nov. 1 | Nov. 15 |
| December | Nov. 29 | Dec. 15 |
How can families update their income and number of dependents online?
For now, the Child Tax Credit Update Portal is the best way to quickly make any changes that have happened since you last filed your taxes. For example, if you had a new baby in 2021 or gained a qualified dependent or if your income recently changed, the IRS wouldn’t have that on file yet. Before the end of 2021, the IRS will give the portal more functionality. Right now, you can use the portal to update your banking information and mailing address. Later in September, you’ll be able to add or subtract qualifying children, report a change in your marital status or income or reenroll in monthly payments if you previously unenrolled.
Do married parents have to opt out separately?
Unenrolling applies only to one individual at a time. So if you’re married and file jointly, both you and your spouse will need to opt out separately. If only one of you does so, you will get half the joint payment you were supposed to receive with your spouse, the IRS said.
How can families who don’t file taxes get child tax credit payments?
If you filed your taxes before the May 17 deadline, you should have automatically received the advance monthly payments that started July 15. An online IRS portal for nonfilers is also available for families who don’t normally file income tax returns so they can register with the agency and receive payments. However, the tool has been criticized for not being easy to use — especially on a smartphone.
For more child tax credit information, here’s what to know about the child tax credit payment timeline and how to estimate your total payment using PJDM’s child tax credit calculator.
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