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.
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.