A new child tax credit portal was launched by the IRS on Tuesday. The online tool is designed to enable families to unsubscribe from the monthly payments which are due out on July 15th. This means that if you decide to opt out of monthly checks up to $ 300 per child, you can claim the full amount when you file your tax return next spring.

So why would anyone want to opt out of early payments and wait until 2021 to receive the money? We have several reasons, one being that you know your income or the number of dependents will change this year and you don’t want to have to change your personal information with the IRS. To unsubscribe, you will need to use the Child Tax Credit Update Portal.

Read on for more reasons you might want to opt out, as well as additional steps married couples will need to jointly 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 to unsubscribe from monthly child tax credit payments?

Here’s how to turn off monthly payments.

1. Head to the new Child Tax Credit Update Portal and press the Unsubscribe from Advance Payments button at the bottom of the page.

2. On the next page, log in using your IRS account or your 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

What is the deadline to unsubscribe? Can you re-register?

You can opt out at any time this year and 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

Should both parents withdraw?

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.

What is the payment schedule for those who 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 next year. The full amount will then arrive with your tax refund, or could 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 on their taxes 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 the 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 will 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 already 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.