You can choose to opt out and claim the credit next year if you’ve started earning more income recently.
Sarah Tew/CNET
Opting out of the monthly child tax credit payments may sound like you’ll never get that money, but that’s not true. Actually, it means you’ll instead get one large check with your tax refund in 2022 — and at least 1 million households have already made the decision to unenroll. Why? It could be as simple as preferring to get a bigger amount in 2022, or it could be out of concern for an unexpected tax bill in the spring.
Here’s how it works: Through December, eligible households are getting a monthly advance credit of up to $300 per child under 6, and $250 per child aged 6 through 17. The first check already went out July 15. To opt out of getting the second check on Aug. 13, you’ll have to do so before Monday, Aug. 2. Keep in mind that the amount of the advance checks is based on 2020 tax returns or the most recent year the IRS has on file. We’ll explain why that’s important below.
The key to managing your child tax credits is the online Update Portal, which requires setting up an ID.me account. Before reviewing the details and deadlines for opting out in 2021, think about if your household situation is changing this year, whether it be a new job or a new baby. If you decide to continue getting the advance payments to cover expenses now, here are some ways to spend your child tax credit money. This story has been updated recently.
Top reasons families have unenrolled from the payments
Here are some cases where unenrolling from the 2021 advance child tax credit program could be a good idea:
You’d rather have one large payment next year instead of seven smaller payments spanning 2021 and 2022. This could be the case for families saving up for a big expense or those who’ve budgeted that money to pay off outstanding debt. You know your household’s circumstances or tax situation will change (or they’ve already changed) this year and don’t want to deal with having to update your information in the IRS portal. This could be the case for divorced parents who alternate custody of a child. You’re concerned the IRS might send you an overpayment based on old tax information from 2020 or 2019, and you don’t want to worry about paying any of that money back next year. That could be the case if your household income goes up because you’ve returned to work or got a new job. It could also be the case if a dependent you claimed previously is aging out of an age bracket before the end of 2021.
How to opt out of future child tax credit payments now
If you want to unenroll, your next shot is to do it by Aug. 2. You can opt out anytime in 2021 to stop receiving the rest of your remaining monthly advances, even if you’ve already received payment. 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 in late summer, 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
For married parents, both have to opt out of the payments
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. 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.
What opting out means for your 2022 tax return
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
Parents who never file tax returns can still register for payments
If you filed your taxes before the May 17 deadline, then you’ll automatically receive the advance monthly payments starting 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 phone.
More useful things to know about the IRS update portal
The Child Tax Credit Update Portal will also let you add any changes that’ve 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. By early August, you’ll be able to update your mailing address. Later in the summer, 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.
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 CNET’s child tax credit calculator.