Child Tax Credit: Monday Is Deadline To Opt Out Of Advance Monthly Payments

CBS Dallas/Fort Worth

August 2, 2021

Many qualified parents have already received the first round of Child Tax Credit payments from the Internal Revenue Service (IRS). The next payment is about a week and a half away. But the deadline to opt out of advance monthly payments, in favor of a one-time payment at tax time, is August 2. Below are instructions for how to opt out. Qualified parents who haven’t unenrolled by the end of the day will receive up to $300 per child again on August 13. There will be another chance to opt out in a month.

The updated Child Tax Credit is based on parents’ modified adjusted gross income (AGI), as reflected on their 2020 tax filing. (AGI is the sum of one’s wages, interest, dividends, alimony, retirement distributions and other sources of income minus certain deductions, such as student loan interest, alimony payments and retirement contributions.) The amount phases out at a rate of $50 for every $1,000 of annual income beyond $75,000 for an individual and beyond $150,000 for a married couple. The benefit is fully refundable, meaning does not depend on the recipient’s current tax burden. Qualifying families receive the full amount, regardless of what they owe in taxes. There is no limit to the number of dependents that can be claimed.

CBS Local Digital Media personalizes the global reach of CBS-owned and operated television and radio stations with a local perspective.