Advance Child Tax Credit Payment Recipients Can Still Opt-Out
Advance child tax credit (CTC) payment recipients can still opt-out even if they start receiving payments. These payments were created in the American Rescue Plan Act of 2021 and the IRS began sending out payments or depositing them in bank accounts on July 15. The IRS announced that families can use its Child Tax Credit Update Portal to opt out of remaining payments. Any updates made by Aug. 2 will apply to the Aug. 13 payment and all subsequent monthly payments for 2021. Under a recent law, monthly advance CTC payments are being made to families under certain income thresholds. Parents may want to opt out so they receive the entire CTC as a refund when they file their 2021 returns or because they believe they won’t qualify for the CTC when they file. To access the portal: https://bit.ly/36CRO1n
The IRS also explained that it sent “Letter 6417” to recipients before it began disbursing advance payments to them. The letter informed taxpayers of the amount of their estimated CTC monthly payments and indicated where they can find additional information about them. In January 2022, the IRS will send “Letter 6419” to provide the total amount of advance CTC payments disbursed during 2021. Save this letter for when you file your 2021 return.