Child Tax Credit

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

The deadline to opt out for September has just passed but there are still future opportunities for those who want to opt out of the scheme.

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Child Tax Credit 2021: when is deadline to opt out from the September payment?
Chip Somodevilla AFP

For those trying to opt out, unfortunately, the deadline passed on August 30. This means that another one will be coming on September 15. It is possible to opt out for the October payment, which could be worth doing if you forgot to do it for this month.

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.

To find out if your family is eligible, use this link to access the IRS portal.

When are the future deadlines for opting out?

Past and future deadlines for opting out

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 it be good to opt out?

Although the chance to opt out for next month has passed, there is still the opportunity to opt out for October or the following months. Opting out doesn't withhold you from receiving 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.