How to opt out of the 2021 child tax credit – By Katie Conner (CNET) / June 17 2021
The monthly payments will start on July 15, but some families may rather receive a lump sum in 2022 instead.
If your family qualifies for the new child tax credit, the first advance payment will arrive on July 15, with monthly checks continuing through December. The rest of your money will come with next spring’s tax refund. But you do have the option to opt out of the monthly checks to instead receive one lump sum — which could be up to $3,600 depending on your kid’s age — when you file your tax return next year.
There are several benefits to holding off on receiving the payment until next year: For example, if your income or number of dependents will change during 2021 and you don’t want the hassle of extra paperwork. To opt out, you’ll have to use an IRS child tax credit portal that should be live by July 1.
Keep reading to find out more about why you may want to consider opting out — and how to do so before July 15. And in the meantime, here’s how you can claim up to $16,000 in child care expenses as a tax break next year, and some ideas for the best ways to spend your child tax credit money when it comes. Plus, here’s what we know about the new stimulus plans and how they might bring you more money. This story gets frequent updates.
CONTINUE > https://www.cnet.com/personal-finance/how-to-opt-out-of-the-child-tax-credit-2021/
