WHY WE SHOULD ADVISE CLIENTS TO OPT OUT OF MONTHLY CHILD TAX CREDITS

July 2, 2021 by TxSEA
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f our clients didn’t opt out by June 28th, they should be receiving their first child care tax payment by July 15th. And, if
only one spouse opted out and the other did not by June 28th, then they will be receiving half of their child tax credit by
July 15th.

For some of our clients, receiving an advance of their child tax credit provides some immediate relief. But there may be
several reasons as to why it would be best that our clients unenroll from these advanced child tax credit payments.
Here are some of the reasons why our clients might want to unenroll from these payments.

1. They know their household circumstances (child turned 18 in 2021) or their income changed and they don’t want to
deal with updating their information in the portal.

2. They are concerned that the IRS will send them the credit that will result in an overpayment and they have to deal with
sending it back.

3. They just don’t need the money and prefer to take the larger credit come tax time.
How to opt out of the child tax credit payments:

1. Go to the IRS website and click the Manage Advance Payments button.
2. On the next page sign in using your IRS or ID.me account. If you don’t have either, the page will walk our clients
through setting up an ID.me account.
3. On the next page they will see their eligibility and option to opt out of enrollment from the monthly payments.
Our clients can opt out at any time but at this time they can’t reenroll. The IRS is saying that later this summer they
should be able to opt back in if they need to.

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