In just over two weeks, the December child tax credit payment will be made. If you don’t want to get the final check of the year, you must unenroll now. Millions of eligible families are benefiting from the early installments this year rather than waiting until 2022 to receive the full credit; parents are collecting as much as $300 per month per child. Despite the fact that the bulk of checks have already been sent out, some families are still opting out.
You have until midnight, Nov. 29, to change your banking or address information or opt out of the final 2021 check. Unenrolling is a simple option for parents who are having problems updating their household changes or who are worried about having to return the IRS if they sent too much money in the first place.
For divorced or single parents with joint custody, this may be the situation. It’s also a possibility for people who want a larger tax refund in 2022. Nontraditional families may be able to escape some of the continuing child tax credit issues by opting out.
The IRS Update Portal, which needs an ID.me account, is the key to controlling your checks, changing your information, and opting out. Here are some ideas on how to spend your child tax credit money if you opt to utilize the advance payments to meet bills immediately. This article has just been updated.
Unenrolling from the 2021 advance child tax credit program may be a smart choice in the following circumstances:
- You’d like a single large payment next year rather than numerous smaller payments spread out throughout 2021 and 2022. This may be the case for families saving for a major purchase, people who have allocated that money to pay off debt, or those who are accustomed to receiving a larger tax refund.
- You’re aware that your household’s circumstances or tax status will change (or have already changed) this year, and you don’t want to deal with having to update your information, especially because the IRS Update Portal doesn’t yet allow parents to make such adjustments. This might be the situation if a child’s custody is shared by separated, divorced, or unwed parents.
- You’re afraid that the IRS will give you an overpayment based on outdated tax information, and you don’t want to be responsible for any of it. That may be the situation if your household income increased as a result of your return to work or the acquisition of a new employment. It may also be the case if a dependent you previously claimed reaches the age of majority before the end of 2021.
If you opt out, you won’t be rejecting the credit; instead, you’ll be deferring the remaining part until after you file your taxes next spring. Keep in mind that the child tax credit is a cash credit, not a tax deduction, and the money you receive will not be shown as income on your 2021 tax return.
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