The third installment of the CTC stimulus check has been scheduled to arrive on the 15th of September, but the last day to unenroll is today. Most of the parents will have time till 9 pm to unenroll from the monthly payments. Now, while most families would be waiting for the financial relief from the checks, it would be wiser to opt-out of the program to ensure a far bigger tax refund in 2022. Also, you wouldn’t have to worry about repaying the IRS. So, keep the deadline in mind, and look towards opting out.
As it stands, there are still a few reasons for most families to unenroll from the CTC Stimulus Check payments. One of the biggest reasons would be the family’s income changing drastically over the last year. Since the IRS will be basing the payments on the tax returns of 2020, a lot could be changed by then. Also, these advance payments aren’t exactly a tax deduction but an actual credit of the cash. These wouldn’t be counted as income on one’s tax return.
Reasons To Opt Out Of The CTC Stimulus Check Payments
There are several reasons for one to opt-out of the CTC Stimulus check payments. One of them involves having one large payment the next year, rather than seven small payments throughout the year. This could very well be the reasoning behind families saving up for a major expense- especially those who’ve budgeted that money to dish off outstanding debt or have been accustomed to receiving a much bigger refund at the time of taxes.
Another reason could be that you are concerned the agency would send you an overpayment on the CTC stimulus check which was specifically based on the tax information from the last two years. It could very well be the reason behind your household income increases.