If you’re waiting for your child tax credit checks to arrive, then here’s a date to remember: the next instalment of the advance child tax credit will be deposited into accounts by Sept. 15.
However, you can avoid having to pay back the credit by opting out of the payments if you believe you might be on the cusp of exceeding an income or age threshold. This means even if you received your first or even second and third payments, you can change your mind and opt-out of any remaining disbursements.
In order to opt-out, you will need to access the online child tax credit portal, scroll down to “Manage Advance Payments” and verify your identity. Once you have entered the portal, you will need to click on the option to “Opt-Out” of the child tax credit altogether.
Here are the dates you need to remember for opt-out deadlines:
- opt out by Oct. 4 for your Oct.15 payment
- opt out by Nov. 1 for your Nov. 15 payment
- opt out by Nov.29 for your Dec. 15 payment
The IRS set up a child tax credit update portal online so that you can update your household details in order to avoid any misunderstanding with the IRS.
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It’s important to remember that the child tax credit is fully refundable, meaning that you will not be required to pay it back nor is it necessary to file taxes in order to receive it – IF – you meet the eligibility criteria.
According to the IRS, over 90% of American families with children will be eligible to receive the credit, meaning the majority of people do not need to worry. Although, it is important to remember that you should not exceed these criteria for eligibility in order to be safe from repayment next year.
If you have more questions, you may contact 800-919-9835, which is the IRS Economic Impact Payment phone number or you can check your status on Get My Payment | Internal Revenue Service (irs.gov).