Opt out of child tax credit checks? 3 reasons you may want to before Aug. 2

Worried about owing the IRS next year? Saving for a big expense? Complicated custody situation? Roughly 35 million families received their first child tax credit payment for July, but already at least 1 million filers have chosen to unenroll from the advance payment schedule. It could be over concerns of an unexpected tax bill next year or just a budgeting preference to get a bigger amount of the credit during tax season. 

The 2021 expansion of the program gives eligible households a monthly advance credit worth up to $300 per child under 6, and $250 per child aged 6 through 17, and that money can be used now. For families opting out, it doesn’t mean they’re declining the credit: They’re just deferring when they receive the extra cash. The advance checks are based on 2020 tax returns or the most recent year the IRS has on file, so keep that in mind when you consider opting out of the monthly checks. More on that below.

To opt out before the next August check, you’ll have to set up an account through the IRS portal, unenroll before Aug. 2 and plan to claim the money when you file your taxes in 2022. We’ll explain how to use the Update Portal to manage your payments and the deadlines for opting out in 2021. If you decide to continue getting the payments, here are some ways to spend your child tax credit money. This story has been updated. 

Three reasons parents are opting out of advance payments

Here are some reasons why unenrolling from the 2021 advance child tax credit program may be a good idea: 

• You’d rather have one large payment next year instead of seven smaller payments spanning 2021 and 2022. This could be the case for families saving up for a big expense or those who’ve budgeted for that money to pay off outstanding debt. 
• You know your household circumstances or tax situation will change (or has already changed) this year and don’t want to deal with having to update your information in the portal. This could be the case for divorced parents who alternate custody of a child. 
• You’re concerned the IRS might send you an overpayment based on old tax information from 2020 or 2019, and you don’t want to worry about paying that money back. That could be the case if your household income goes up or if a dependent ages out of an age bracket before the end of 2021. 

How to opt out of 2021 prepayments through the portal

Your next shot to unenroll is by Aug. 2 for the Aug. 13 payment. You can opt out anytime in 2021 to stop receiving your remaining monthly advances, even if you already received a payment. To unenroll, the IRS said you must opt out three days before the first Thursday of the month to not receive the next month’s payment. See the chart below for more. 

If you miss a deadline, the IRS said you will get the next scheduled advance payment until the agency can process your request to unenroll. The IRS said currently if you unenroll, you can’t reenroll yet. Starting in late summer, you should be able to opt back in.

Here’s how to unenroll:

1. Head to the new Child Tax Credit Update Portal and click the Manage Advance Payments button.

2. On the next page, sign in using your IRS or ID.me account. If you have neither, the page will walk you through setting up an ID.me account. You’ll need an email address, a photo ID, your Social Security number and a smartphone or tablet to verify your identity. 

3. On the next page, you can see your eligibility and unenroll from the monthly payments. 

Child tax credit payment unenrollment dates

Payment month	Unenrollment deadline	Payment date
July	June 28	July 15
August	Aug. 2	Aug. 13
September	Aug. 30	Sept. 15
October	Oct. 4	Oct. 15
November	Nov. 1	Nov. 15
December	Nov. 29	Dec. 15

For married parents, both need to unenroll, not just one

Unenrolling applies only to one individual at a time. So if you’re married and file jointly, both you and your spouse will need to opt out. If only one of you does so, you will get half the joint payment you were supposed to receive with your spouse, the IRS said.

How opting out impacts tax filing in 2022

Those who choose to decline this year’s child tax credit installments (amounting to half the total) will still receive the same amount of money in the end, but are simply delaying when they receive it. So if you have a child who’s 5 years old or younger by the end of 2021 and your income meets the requirements, you’ll get $3,600 total when you file your taxes in 2022. 

Be aware that if you unenroll from getting the monthly child tax credits this year, you won’t get your full payment — or any payment at all — until after the IRS processes your 2021 tax return in 2022. The total amount will then arrive with your tax refund or can be used to offset any taxes you owe at that time; you’ll be in a situation similar to people who have had to claim missing stimulus checks this year.

However, if you choose to receive monthly advances, you’d get six installments of $300 payments each month this year and another $1,800 with your tax refund next year instead. Keep in mind that if you take the money in advance now, it could lower your tax refund next year because you may get more money than what is owed to you. It will also mean you’ll have fewer deductions since you’ve already collected the credit. 

You can use our child tax credit 2021 calculator to estimate how much you should get and see a breakdown of the monthly payments if you choose not to opt out and meet all eligibility requirements. 

Child tax credit payment schedule

Monthly check	Maximum payment per child 5 and younger	Maximum payment for each child; 6 to 17
July 15	$300	$250
Aug. 13	$300	$250
Sept. 15	$300	$250
Oct. 15	$300	$250
Nov. 15	$300	$250
Dec. 15	$300	$250
April 2022: Second half of payment	$1,800	$1,500

Parents who don’t file taxes can register for enhanced payments

If you filed your taxes before the May 17 deadline, then you’ll automatically receive the advance monthly payments starting July 15. An online IRS portal for nonfilers is also available for families who don’t normally file income tax returns so they can register with the agency and receive payments. However, the tool has been criticized for not being easy to use — especially on a phone. 

Other ways to use the IRS update portal this year

The Child Tax Credit Update Portal will also let you add any changes that’ve happened since you last filed your taxes. For example, if you had a new baby in 2021 or gained a qualified dependent or if your income recently changed, the IRS wouldn’t have that on file yet. 

Before the end of 2021, the IRS will give the portal more functionality. By early August, you’ll be able to update your mailing address. Later in the summer, you’ll be able to add or subtract qualifying children, report a change in your marital status or income or reenroll in monthly payments if you previously unenrolled. 

For more child tax credit information, here’s what to know about the child tax credit payment timeline and how to estimate your total payment using CNET’s child tax credit calculator.