HOUSTON – The first of six child tax credit payments to parents will hit bank accounts and mailboxes on July 15. Some families may absolutely need the money now to pay bills. That is why President Biden pushed the advance payments. If you don’t need it, there are several reasons why you may want to opt out of receiving the early payments.
The first payments to parents will go out on July 15. They will continue every month through December 2021.
You will receive the second half of what you are owed in April 2022 when you file your taxes.
How much you receive depends on the ages of your children and how much you make - your adjusted gross income.
- Parents of children ages 5 and under can get $3,600 per child.
- Parents with children ages 6 to 17 can qualify to receive up to $3,000 per child.
- For each 18-year-old and full-time college student between the ages of 19 and 24, parents can get up to $500.
You only get the full amount if you are: A) single and making $75,000 a year or less, B) the head of household making $112,500 or C) married filing jointly making $150,000 or less.
The full monthly payment will be $300 per child 5 and under or $250 per child 6 to 17 years old.
Why you could have to pay the money back in 2022
Under the guidelines of the Expanded Child Tax Credit, the more money you make, the less you will receive. Almost everyone will receive the standard $2,000 credit.
- If you are making more money this year in 2021 than you did on your last tax return, you may have to pay some of the child tax credit money back at tax time next year.
- If you had a 17-year-old child on your last tax return who turns 18 this year, they may not be eligible for the tax credit. That will be reflected on next year’s taxes, and whatever payments you already received may have to be returned to the IRS.
It is too late to opt-out of getting the first child care tax payment. Those should go out on July 15th.
But if you unenroll or opt-out by August 2, you won’t receive those payments the rest of the year. You will get the remaining credit at tax time next year.
Click here for the IRS portal where you can opt out.
Deadlines to unenroll in the advanced child tax credit payments
- July 2021 - Unenrollment Deadline June 28, 2021 - Payment Date July 15, 2021
- Aug. 2021 - Unenrollment Deadline August 2, 2021 - Payment Date August 13, 2021
- Sept. 2021 - Unenrollment Deadline August 30, 2021 - Payment Date September 15, 2021
- Oct. 2021 - Unenrollment Deadline October 4, 2021 - Payment Date October 15, 2021
- Nov. 2021 - Unenrollment Deadline November 1, 2021 - Payment Date November 15, 2021
- Dec. 2021 - Unenrollment Deadline November 29, 2021 - Payment Date December 15, 2021