The deadline to unenroll from the child tax credit program was Monday night if you are eligible and prefer to receive a lump sum refund check after you file. If you did not unenroll, you’ll still receive a July payment, but the deadline to stop an August payment is August 2nd.
IRS Spokesperson Aaron Wiley said you can do so at the Child Tax Credit portal on IRS.gov. Here's a primer on the tax credit, key deadlines and who is eligible to receive it.
The enhanced child tax credit is part of the American Rescue Plan signed into law by President Joe Biden in March. It expands the existing child tax credit to $3,000 from $2,000 for dependents 17 and younger and gives an additional $600 for children under the age of 6, per CNBC.
Half of the credit will come to American families as advanced monthly payments starting July 15 and continuing through December. For children between 6 and 17, the full credit will amount to $250 per month. For children under the age of 6, the full credit will be $300 per month.
The full credit is available to all families with 2020 or 2019 incomes of less than $75,000 for single parents, and $150,000 for a married couple filing jointly.
If you missed the Monday deadline to unenroll and get a lump sum, don't stress. “If they missed that deadline, they can always unenroll after that. They’ll just receive that first payment of July 15th, but they won’t receive any other payments,” said Wiley.
Wiley said if parents file joint returns both must unenroll to stop the monthly payments.
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Parents who will be automatic recipients of the child tax credit should have already received a letter in the mail about their eligibility. Wiley said however if your income has changed since you last filed you can visit the Child Tax Credit Portal and check eligibility.
“Once if they’ve determined if they’re eligible or not they can go in and if they haven’t filed a 2020 tax return there’s a non-filer tool that they can use to file a simplified 2020 tax return and get signed up,” said Wiley.
The IRS website has had to undergo several updates and offer portals for taxpayers to update their address, income, and banking information that might have changed since they last filed their taxes in order to receive payments. Wiley said the IRS is trying to be as accommodating as possible.
“The IRS is doing all that it can to make sure that the options to opt-out or to have your information updated is available to any taxpayer that wishes to do that,” said Wiley.
For more information visit childtaxcredit.gov or IRS.gov.
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