Child Tax Credit

Child Tax Credit 2021: when is the deadline to opt out from August payment?

The August deadline looms for opting out of the scheme and you can find out how to do so here.

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Child Tax Credit 2021: when is the deadline to opt out from August payment?
Elizabeth Frantz Reuters

The deadline for opting out of the credit is August 2. Opting out at this stage prevents you from receiving any more of the credit until the end of the tax year in April 2022. However, the IRS says they will be adding functionality on the portal so families who opt out and change their mind can rejoin the monthly payments.

The link to access the IRS portal is here.

Each child under six at the end of the year could be eligible for up to $3,600, and those six through 17 at the end of 2021 could be eligible for up to $3,000.

When are the other deadlines?

Child Tax Credit deadlines

Payment month
Deadline Date
Payment Date
July
28 June 2021
15 July 2021
August
2 August 2021
13 August 2021
September
30 August 2021
15 September 2021
October
4 October 2021
15 October 2021
November
1 November 2021
15 November 2021
December - Final Payment
29 November 2021
15 December 2021

Why might opting out be beneficial?

Opting out doesn't withhold you from receivng the credit. Rather, your family receives the whole credit as a tax refund come April 2022, the end of the tax year. Unlike the stimulus checks, there are wage thresholds which families must be under to receive the credit.

Households with adjusted gross income at or below $40,000 on a single tax return, $50,000 on a head-of-household return, and $60,000 on a joint return won't have to repay any overpayments on the Child Tax Credit that they receive. However, those households making at or above $80,000, $100,000, and $120,000, respectively, will need to repay the entire amount of overpayment. For households with earnings in between these thresholds, will need to repay a portion of any overpayments.

As the information is taken from either your 2020 or 2019 tax return, unless you are a non-filer, your 2021 tax return could take your family above the threshold for repayment. Opting out would stop you from having to pay back some of the money but you will still receive what you are owed, if you are still eligible, come April.