COVID-19: 2021 Advance Child Tax Credit Payments
July 27, 2021
If you have kids, you may have noticed a direct deposit or received a check from the IRS on July 15th. This payment is an advance of the child tax credits the IRS has estimated that you will be eligible for on your 2021 tax return. The advance checks are based on 2020 tax returns or the most recent year the IRS has on file.
You will continue to receive these monthly payments unless you opt out using the IRS Child Tax Credit Portal located at https://www.irs.gov/credits-deductions/child-tax-credit-update-portal. You will need to sign in using your IRS or 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.
Please note that for married parents, both need to opt out of the payments or you will still receive half of the credit that was calculated!
Reasons for opting out include wanting to receive a larger refund when you file your tax return for 2021. If you opt out, that doesn't mean you won't get the money at all, you'll just defer the money to tax time next year. Or you may be concerned the IRS will send you an over payment based on old tax information. For example, your household income has increased in 2021 or a dependent ages out of a specific tax credit amount.
Some helpful information to help you determine if opting out is the best option for you –