If you’re expecting to get themoney, your first monthly payment will arrive in just two months — assuming and have . Starting in July, you’ll get seven payments that equal out to . But it depends on your child’s age and your this year. However, you can opt out of the monthly payments if you’d rather get one large payment in 2022.
You’ll need to change your preference when the IRS portal opens if you don’t want to start getting monthly payments. We’ll explain what you need to know about opting out of the smaller child tax credit payments. Also, here are somewhen you get it.
As a side note, if you’re still waiting on youror your , here’s . Also, your — it takes two minutes to check. Plus, here’s how .
Three reasons for opting out of the monthly child tax credit payments
If you’d rather receive yourin one lump sum rather than seven smaller payments, you can choose to opt out of the payments in July. Here are some reasons you may want to opt out:
- You’d rather have one large payment next year.
- You know your circumstances will change and don’t want to deal with updating your information in the portal the IRS plans to open by July 1. (The portal is where you can update the IRS about any significant changes that pertain to you.)
- You’re concerned the IRS might accidentally send you an overpayment, and you don’t want to worry about paying that money back.
What happens if you decide to opt out of the monthly checks
Be aware that if you opt out of receiving monthly child tax credits from July through December, you won’t get your full payment — or any payment at all — until after the IRS processes your 2021 tax return next year. The full payment will then arrive with your tax refund, or could be used to offset any taxes you owe; you’ll be in a similar situation to those people who had toon their taxes this year.
So if you have a child who’s 5 years old or younger by the end of 2021 and your, you’ll get $3,600 total when you file your taxes in 2022. However, if you choose to receive six monthly payments this year, you’d get $300 each month and another $1,800 with your tax refund. You can use our to estimate how much you should get.
If you don’t update your information in the portal and you file your taxes before the, you’ll automatically receive the monthly payments. More below on how to opt out.
You’ll use the IRS portal to opt out of monthly payments once it’s available
By July 1, the IRS will open a portal that’s designed specifically for the new child tax credit payments. You can also use it to opt out of receiving multiple payments this year. We’ve asked the IRS about how exactly you’ll be able to do this. We do know the IRS will have paper forms available for those who don’t have internet access. “We will make forms and instructions for the forms available for folks who want to opt out,” IRS Commissioner Charles Rettig said April 13.
We’re not sure how the portal will look or what the process will be, but we do know it can be used to update your record with any changes that have happened since you last filed your taxes. For example, if youor have gained a new — the IRS wouldn’t have this information on file yet. Or maybe your income has changed recently.
We’ll know more about the details you can change once the IRS portal is up and running — the IRS won’t have the resources to build the portal.
For more child tax credit information, here’s what you need to know. Also, here’s what to know about the and the to claim their CTC payments.