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Tuesday, July 5, 2022

Child Tax Credit Update: Opt Out By October 4

Quite a few families throughout the country have received the first three child tax credit stimulus payments, and are waiting for the fourth one. But every single monthly payment has brought with it several problems- amidst which waiting for assistance from the agency is definitely a big one.

If you have been going through some issues with your stimulus payments, you could definitely opt out of the remaining monthly payment using the updated portal of the CTC stimulus payments. But if you are really thinking about opting out, the deadline would be on the 4th of October. 

How Can I Cancel The Remaining Child Tax Credit Payments?

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Most of the families who have been deemed eligible for the expanded child tax credit wouldn’t have to take any action to receive the payments in 2021. If you have already gone ahead and have filed the federal income tax return for 2019 or 2020, or even applied the nonfiler tool in 2020 to register for stimulus check payments, you would have already received the credit in July. And this stimulus payment is quite nonrefundable- so you won’t even need the income to get it, and families will have to pocket the extra money. 

The updated portal for Child Tax Credit will allow you to opt out of receiving the monthly CTC payments for this year. This implies that rather than receiving the monthly payments of $300 for your 4-year old, you can definitely wait until you file the tax return for 2021 in 2022 to get the remaining sum of $3,600. You can opt-out of the payments- but you would have to opt-out around three days before the first Thursday of that month. 

You can definitely choose to opt-out from the advance monthly child tax credit payment program because you were expecting situations to change, or if the monthly payments will hamper the tax planning for your family. Most families that will be owing money to the IRS when they file their taxes may simply utilize the full credit received the next year.

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