COVID-19 Resources

IMPORTANT INFORMATION:

DO NOT TAKE THE CHILD TAX CREDIT ADVANCE PAYMENTS!

The IRS recently sent out a letter notifying you of how their Advance Child Tax Credit payments will work. They also advised you at the bottom of the letter on how to opt out of this program for those who would prefer to just get a larger refund with their tax return or not risk owing money at tax time.

For most, I would suggest that you OPT OUT.  This is not needed by most people and only serves to adversely complicate your tax return and financial situation.  In my opinion, taking these advances now will only force you into another adjustment elsewhere.

This Act is NOTHING like the stimulus payments. All this is, is the IRS sending you PART of your tax refund earlier than usual. Most of our clients, say they would prefer to keep the larger refund at the end of the year rather than get some of it spread out over 6 months.  If you are not getting a large refund, then the Child Tax Credit Advance payment is REDUCING the Federal Income Tax Withhold you would otherwise need from your paychecks (wages).

My hope with this post is to just help inform my clientele and friends. The client who is used to a $2,000 refund but ends up owing $4,000 will be upset at all if this is planned for NOW and understood correctly!

  • So if you need money now, take the advance payments, no problem in that at all. Just make sure you know what your outcome will be at tax time.
  • If you'd like to opt out, visit www.irs.gov/childtaxcredit2021

If you choose to unenroll from the monthly payments, you must “unenroll 3 days before the first Thursday of next month by 11:59 p.m. Eastern Time,” the IRS says.

July: Unenrollment deadline is 6/28/2021, payment date on 7/15/2021
August: Unenrollment deadline is 8/2/2021, payment date on 8/13/2021
September: Unenrollment deadline is 8/30/2021, payment date on 9/15/2021
October: Unenrollment deadline is 10/4/2021, payment date on 10/15/2021
November: Unenrollment deadline is 11/1/2021, payment date on 11/15/2021
December: Unenrollment deadline is 11/29/2021, payment date on 12/15/2021

According to the IRS, “unenrollment is a one-time action. You will be able to re-enroll starting in late September 2021.”

Do both parents have to unenroll in the portal?

If you're married and file jointly, both you and your spouse need to opt out. If only one of you opts out, you will get half of the joint payment you were supposed to receive with your spouse, the IRS said.

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Thank you for your trust and please remain calm as we all are going thru this together. 

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