The first payout for the Child Tax Credit payment program will officially start in just over a week. Eligible individuals who enrolled in the program before June 28 should receive their $300 starting July 15. On the other hand, opting out of the program lets you claim the total amount in a lump sum by next year.
Child Tax Credit payments are being given to families as a financial aid for raising children. The government is ready to pay up to $16,000 in child care expenses, including food, medicine and babysitter fees, depending on eligibility.
An advance payment program was recently approved for this child tax credit. This is to help families receive immediate and necessary tax relief within the month.
To claim the money, IRS checks on your personal details and eligibility through your 2020 Tax Returns. Then they will automatically calculate and send out the money to your registered bank or address.
Child Tax Credit Monthly Payments and Deadline
Cnet provided a complete list of the Child Tax Credit schedule. To receive the money, you must submit your 2020 tax returns before the unenrollment deadline.
- July: Deadline: (June 28) & Payment Date: (July 15)
- August: Deadline: (Aug 2) & Payment Date: (Aug 13)
- September: Deadline: (Aug 30) & Payment Date: (Sept 15)
- October: Deadline: (Oct 4) & Payment Date: (Oct 15)
- November: Deadline: (Nov 1) & Payment Date: (Nov 15)
- December: Deadline: (Nov 29) & Payment Date: (Dec 15)
Eligible families can receive a monthly payment of $300 per child five years old and younger, and $250 for children six and above. Here is an online calculator to compute how much money you are supposed to recieve.
Opt Out of Monthly Child Tax Credit Payments
On the other hand, eligible individuals could also opt out of the child tax credit payment if they want to receive one lump sum payment or if they expect to have some changes in their household circumstances. Possible changes in eligibility that might lead to overpayment from the IRS could also push individuals to opt out.
If any of these three circumstances apply to you, you could opt out from the Child Tax Credit payments by following these steps:
- Go to the Child Tax Credit Update Portal
- Open "Manage Advance Payments"
- Sign in using your IRS or ID.me account. (Or sign up if you have neither.)
- You would be automatically redirected to a page with "eligibility" and "unenroll from the monthly payments." Click on the latter.
Note, however, that the lump sum for the Child Tax Credit will be subject to a few related factors such as 2021 eligibility requirements, pre-existing debts, and offset taxes owed to the government.
While the prospect of receiving the Child Tax Credit money in a lump sum is appealing, consider your circumstances carefully. If your AGI (Adjusted Gross Income) improves, then you might not qualify for the monetary aid anymore.
Related Article: Child Tax Credit Portal: How to Update Your Bank Account Information to Get $300 Direct Payments
