The deadline to opt-out of future child tax credit payments is Nov. 4 at midnight ET.
If you opt out now, the November and December monthly payments will not be sent to your bank account. Opting out of the child tax credit at this point probably means you won’t be able to claim the other half of the credit during next year at tax time since you would have phased out of the income threshold.
Why Would You Opt-Out Now?
The child tax credit for 2021 is based on your 2019 and 2020 tax returns, which means if your income situation changed during 2021, it’s possible you might be on the hook to the IRS come tax time.
This is because, in order to qualify for the child tax credit, the only main requirement has been meeting the income threshold which is $75,000 and under filing single and $150,000 and under filing jointly.
If your income surpassed these thresholds in 2021, but you began receiving child tax credit payments in July, then it is possible that you will have to pay back the money you received during next year at tax time, as you are no longer eligible.
Once you file your taxes for 2021, the IRS will automatically adjust your taxes for the correct income and no further action will be needed on your part.
How Do I Opt-Out?
If you are unsure whether or not you will owe money to the IRS next year because of increased income, you can use the IRS Update Portal here. Simply click on “Manage Advance Payments” and remove yourself from future payments. One thing to note: Married couples must individually opt-out for this to work.
Missing Payments: Didn’t Get Your Child Tax Credit? Here’s How to Track It Down
Where’s it Going?: What Are Parents Spending Their Child Tax Credit Money On?
Can I Still Get Payments?
The credit is available to both people who file taxes and those who do not. If you have not filed taxes, and need to, the IRS requires you to do so by Nov. 15. Once you do, you’ll get a single lump-sum check in December. If you do not need to file taxes, you can register for the CTC by using the third-party non-filer tool here to get the money. Unlike the IRS tool, which is now closed, it is mobile-friendly and can be read in Spanish.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Stimulus Update: The Child Tax Credit Opt Out Deadline is November 4