The Child Tax Credit Update portal is now available to those who choose to opt out of receiving advance child tax credit monthly payments.
Background:
The American Rescue Plan (which was signed into law in March of 2021) increased the child tax credit from $2000 per child and is now fully refundable. In addition, families will receive half of the credit in the 2021 calendar year rather than waiting to file in 2022.
What’s new:
The portal is now available if you choose to opt out. You can access it here. Once you opt-out, you cannot re-enroll. If you alternate claiming a dependent each tax year this could be a great option to avoid funds being deposited to the incorrect parent in 2021. It’s important to remember the advance payments might mean your tax refund looks smaller than you’re used to. If you prefer to see the larger refund in the spring you might consider opting out of the monthly payments.
Important dates:
If you choose to opt out of receiving these payments, you must opt out by June 28 to avoid receiving the July 15 payment.
Who’s directly impacted?
Parents/guardians with children under 6 will receive a credit of $3600 total. For children between ages 6 and 17 parents/guardians will receive a $3000 credit. Half of this credit will be distributed monthly to eligible filers. Monthly payments will equal $250/month for children ages 6 - 17 and $300/month for children under 6. This credit amount phases out for single filers making more than $75,000 and married couples making more than $150,000. For more information you can read about the Advance Child Tax Credit here. Our team will continue to provide updates as available regarding the child tax credit and payments. However, this information is subject to change.You should always refer to the IRS website as they are the authority over these payments.
