Millions ofare expecting their first monthly to arrive on July 15, with payments as much as depending on . But did you know you can decline receiving the monthly checks and get the full amount (as much as ) next year?
By July 1,will open that will allow you to opt out of the monthly payments. You’ll also use one of the portals to make changes and updates to your household situation. You might want to start thinking about when it comes.
In addition to the child tax credit, you can alsoas a tax break next year. If you’re still waiting on your or your , here’s . And here’s what we know about and how they might bring you more money. This story gets regular updates.
Some benefits of opting out of child tax credit payments
Here are some reasons why opting out of the monthly child tax credit payments may be a good idea:
- You’d rather have one large payment next year instead of seven smaller payments over 2021 and 2022.
- You know your circumstances or tax situation will change and don’t want to deal with updating your information in the portal the IRS plans to open by July 1.
- You’re concerned the IRS might accidentally send you an overpayment, and you don’t want to worry about paying that money back.
Payment schedule for those who decide to opt out
Be aware that if you opt out of getting the monthly child tax credits from July through December, you won’t get your full payment — or any payment at all — until after the IRS processes your 2021 tax return next year. The full payment will then arrive with your tax refund, or could be used to offset any taxes you owe at that time; you’ll be in a similar situation to those people who had toon their taxes this year.
So if you have a child who’s 5 years old or younger by the end of 2021 and your, you’ll get $3,600 total when you file your taxes in 2022. However, if you choose to receive monthly payments, you’d get six installments of $300 payments each month this year and another $1,800 with your tax refund next year. You can use our to estimate how much you should get.
Opting out through the upcoming IRS portal
By July 1, the IRS will open two portals designed specifically for the new child tax credit payments. One of them will be used to opt out of receiving multiple payments this year. We’ve asked the IRS about how exactly you’ll be able to do this. We do know the IRS will have paper forms available for those who don’t have internet access. “We will make forms and instructions available for folks who want to opt out,” IRS Commissioner Charles Rettig said April 13.
We’re not sure how the portals will look or what the process will be, but we do know they can be used to update your record with any changes that have happened since you last filed your taxes. For example, if youor have gained a new — the IRS wouldn’t have this information on file yet. Or maybe your income has changed recently.
If you don’t update your information in the portal and you filed your taxes before the, you’ll automatically receive the monthly payments. We’ll know more about the details once the IRS portals are up and running — the IRS should have more resources to build the portals now that tax season is coming to an end.
For more child tax credit information, here’s what you need to know. Also, here’s what to know about the and the to claim their payments.