FACT FINDERS: Child Tax Credit opt out deadline coming up
TUCSON, Ariz. (KOLD News 13) - A deadline for the Child Tax Credit is approaching, which could be an important one for some families.
Those who want to opt out from the Child Tax Credit must do so by Monday. If not, they will get the next check.
Matt Schulz, Chief Credit Analyst at Lending Tree, says those who fall into one of these categories might consider opting out:
- A child is turning 18 this year and will no longer qualify for the credit.
- A child is turning six this year and will only be eligible for a lesser payment.
(With these two reasons, the government should be aware, but it’s good to double check.)
- Divorced parents with shared custody who take turns claiming the children.
- Those whose income went up substantially this year.
An example of that could be someone who was unemployed or underemployed because of the pandemic.
”The fact that you’ve gotten that job back is going to increase your income to a level where you may end up on the hook for paying a little bit of these child tax credit payments back,” said Schulz.
Some may also prefer to opt out to get a bigger payment next year.
To opt out, go to the IRS “Child Tax Credit Update Portal.”
The process should be completed 11:59 p.m. Eastern or 8:59pm Arizona time on Monday.
Those who miss the deadline will get the next check but can still opt out for future checks.
To stop payments, unenroll three days before the first Thursday of the next month. This is only necessary once.
Copyright 2021 KOLD News 13. All rights reserved.