You’ve probably heard of the new child tax credit portal that was started by the IRS this week, but do you know what it’s for? The online tool allows you to unsubscribe from monthly payments which are due to start on July 15th. If you choose to unsubscribe from monthly checks up to $ 300 per child, you can claim the full amount when you file your tax return next spring.

Why would you want to wait to receive the money in 2022? We have several reasons – maybe you don’t want to have to update your personal details if your income from the number of dependents changes this year. To unsubscribe, you will need to use the Child Tax Credit Update Portal.

We’ll explain other reasons why you want to opt out, as well as the additional steps married couples will need to take. Here is also how you can claim up to $ 16,000 in child care expenses like tax break next year, and some ideas on the best ways to spend the child tax credit money when it comes. This story receives regular updates.

How do I opt out of monthly child tax credit payments?

1. Head to the new Child Tax Credit Update Portal and click on the Unsubscribe from advance payments button.

2. On the next page, log in using your IRS or ID.me account. If you have neither, the page will guide you through setting up an ID.me account.

3. On the next page, the Child Tax Credit Update Portal, you can see your eligibility and opt out of monthly payments

Is there a deadline for opting out? Can you re-register?

You can opt out at any time in 2021 to not receive your remaining monthly payments. To opt out, the IRS said you must opt ​​out three days before the first Thursday of the month to not receive the following month’s payment. See the table below for more information. If you exceed this deadline, the IRS has declared that you will receive the next scheduled advance payment until the agency can process your opt-out request.

The IRS has said that currently, if you opt out, you cannot re-enroll. From the end of September, you will be able to re-register.

Child tax credit opt-out dates

Payment month	Unsubscribe deadline	Payment date
July	June 28	July 15th
August	August 2nd	Aug 13
September	September 30	September 15th
October	October 4	October 15
November	November, 1st	November 15
December	29 november	December 15

Do both parents have to unsubscribe from the portal?

If you are married and filing jointly, you and your spouse must opt ​​out. If just one of you opt out, you’ll receive half of the joint payment you were supposed to receive with your spouse, the IRS said.

When will parents receive payments if they unsubscribe?

Those who choose to decline this year’s Child Tax Credit payments (equivalent to half of the total) will still receive the same amount of money at the end, but simply delay when they receive it.

Be aware that if you opt out of monthly child tax credits from July through December, you will not receive your full payment – or no payment at all – until after the IRS processes your 2021 tax return in 2022. The full amount will then arrive with your tax refund or can be used to offset any taxes you owe at that time; you will be in a similar situation to those people who had to claim missing stimulus checks this year.

So if you have a child who is 5 years old or younger by the end of 2021 and your income meets requirements, you will get a total of $ 3,600 when you file your taxes in 2022. However, if you choose to receive monthly payments, you will receive six payments of $ 300 each month this year and an additional $ 1,800 with your tax refund. next year instead. You can use our 2021 child tax credit calculator to estimate how much you should get.

Why opt out of child tax credit advance payments in 2021?

Here are three main reasons why opting out of the Child Tax Credit Monthly Payment Program may be a good idea:

• You would rather have a single large payment next year instead of seven smaller payments covering 2021 and 2022. This could be the case for families who are saving for a large expense or for those who have earmarked that money to pay off their unpaid debts. .
• You know your household situation or your tax situation will change and you don’t want to have to update your information in the portal.
• You’re worried that the IRS will send you an overpayment based on how your situation changes this year, and you don’t want to worry about paying that money back next year.

How does the new IRS portal allow families to defer monthly payments this year?

If you filed your taxes before May 17th deadline, you will automatically receive advance monthly payments starting July 15. The IRS Child Tax Credit Update Portal allows you to opt out of partial monthly payments. An online IRS portal for non-filers is also available.

We also know that portals can be used to update the IRS with any changes that have occurred since the last tax return. For example, if you had a new baby in 2021, won a new qualified dependent or if your income has changed recently, the IRS might not have registered it yet.

For more information on the child tax credit, what to know about the child tax credit payment deadline and how to estimate your total payment using CNET child tax credit calculator.