23 Jun How to Opt Out of the Advance Child Tax Credit Payments
As part of the American Rescue Plan, the Child Tax Credit has been increased for 2021 and the IRS will be sending out monthly payments to qualifying families. These payments are set to begin next month, with the first one scheduled to hit taxpayers’ accounts on July 15th. You can learn more about these payments in last month’s blog, here.
All qualifying parents will be automatically enrolled in these advance payments, based on information from your 2020 or 2019 tax return. But what if you don’t want the advance payments? If you expect to owe taxes already, you might prefer to not receive the advance payments and simply allow the Child Tax Credit to offset your anticipated tax bill. Or, perhaps you simply prefer to receive the full amount when you get your tax refund.
Whatever the reason, if you don’t want the advance payments, you’ll need to opt out of them. The IRS has launched their tool for unenrolling from these payments on their website. You can find the tool here. If you don’t have an IRS username or ID.me account, you’ll need to have photo ID ready to use the unenrollment tool.
If you have any further questions regarding your eligibility for the increased Child Tax Credit, how to unenroll, or how receiving the advance payments might impact your taxes, please reach out to the Provo tax experts here at The Accounting Guys for assistance.