Today is the deadline for those currently receiving child tax credit payments to opt out if they no longer wish to receive payments. Those wishing to do so have until 11:59 p.m. EST.
October’s payment will be the fourth of six advance monthly installments of the 2021 child tax credit. These six payments, usually in amounts of either $250 or $300, will amount to half of the total benefit amount. For an eligible child receiving the full amount of $300 per month, this equates to $1,800 in advance payments and another $1,800 to be claimed next year during tax time. The maximum total benefit amount is $3,600 per child under the age of six. Children over the age of 6 through age 17 are eligible for $250 a month, and even older college-enrolled children can qualify for lesser amounts.
There are several reasons why one might choose to opt out of the advance payments of the child tax credit. The IRS is using 2019 and 2020 tax returns to determine eligibility for the credit and its amount under certain income thresholds. These include $75,000 and under filing single or $150,000 filing jointly. If you or your spouse surpassed these income thresholds in 2021 when the IRS resolves your tax return next year for 2021’s taxes you might be forced to pay back some of the money you received this year in monthly payments.
You can use the IRS Child Tax Credit Update Portal in order to opt out of payments and importantly, update your income information if necessary.
Should you fail to opt out by tonight’s deadline — or choose not to — you will receive a regular payment on or near Oct. 15.
Tonight is also the deadline for updating your bank account information or address information for the Oct. 15 payments. Last month, the IRS stated that about 2% of payments were delayed because of problems that mainly affected those who recently had updated their bank account information or those who had invalid bank information.
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This article originally appeared on GOBankingRates.com: Stimulus Update: Today Is The Opt-Out Deadline For The Child Tax Credit