FAMILIES can opt out and stop advanced child tax credit payments for 2021 if they take this step by August 30.
Most families in the US qualify for the child tax credit expansion scheme, which was introduced as part of Biden’s American Rescue Plan that was signed into law in March, but not everyone will take part in it.
If families are not interested in the checks for $300 per month for every child five and under and $250 per month for every child six to 17, they can use the Child Tax Credit Update Portal to unenroll between now and December 2021, CNET reports
The opt-out option can be chosen if your “income or other household circumstances changed and could disqualify you from the extra money,” the news outlet explains.
By opting out of the monthly payments, you could avoid having to repay the IRS.
According to the IRS, you need to unenroll 72 hours before the first Thursday of the next month to stop the advance checks.
Read our child tax credit live blog for the latest news and updates…
HOW TO KNOW IF YOU’RE ELIGIBLE
While the income limits determine how much you will receive and if you qualify, there isn’t a limit on the number of children you can receive credit for.
Parents who make less than $150,000 together or a single parent who makes under $112,500 will be entitled to the full amount.
If you have a higher income you’ll get less.
You’ll get $50 less for every $1,000 of income over those threshold amounts.
HOW MUCH CAN YOU GET?
The amount you receive will be based on either your 2019 or 2020 tax returns as well.
There are six payments in total worth to $300 each, that add up to $1,800 before the end of the year.
Two should have already come through with four pending on the rest of the months of the year.
When you file your tax return next year you will then get the same again (up to $1,800) in one lump sum.
If you have a dependent who is 18 years old, they can also qualify for $500. Plus any dependents between 19 and 24 may qualify as well, but they must be enrolled in college full time.