IRS Child Tax Credit 2021: Monthly Payment and Opt-Out Deadlines

IRS Child Tax Credit 2021: Monthly Payment and Opt-Out Deadlines

The second IRS payment will be sent to eligible families within two weeks. But this year's child tax credit isn't at all straightforward. We will explain.

Not only is the credit amount higher in 2021 but, for the first time, eligible families are getting half the total every month this year to help with expenses. The other half comes in one go during next year's tax season.

The first six-monthly payments were disbursed on July 15, and the next payment is due on August 13. Parents should expect more premiums of up to $300 per month for each child under six years old and up to $250 per month for children ages 6-17 unless they opt-out, which we explain below. To estimate the total - which is based on income and the children's ages - use the CNET calculator. If you have any problems with a delivery, we can also answer some of your questions about your money.

Some parents are concerned about how the credit will affect their 2022 taxes, primarily since the IRS relies on this year's payments on outdated tax information. Fortunately, there are ways to anticipate potential risks by managing your household details through IRS online portals.

Child Tax Credit Payment Schedule

Maximum monthly payment per child five years old or younger. full payment per child; 6 to 17

What if I don't get any of the tax credits for my child?

The IRS targets payment dates (see above). If you have a direct deposit set up with the IRS, you may see a payment pending before the actual closing date. This means that you may not be able to access the funds right away, but it is in progress.

How can I opt-out of future prepayments?

Down payments are optional, and while the majority of American families qualify, many still do not; you may prefer to opt-out to avoid paying the IRS. The next opt-out deadline is Monday, August 2, but you can use the online IRS Child Tax Credit Update Portal anytime between now and December to opt-out. You may wish to deregister if you do not meet the income or other eligibility requirements.

To stop pre-checks, the IRS says you must cancel your registration three days before the first Thursday of the following month. See the chart below for deadlines. Once you cancel your registration for this year's advance payments, you can't re-enroll, although the IRS says it will make this option available later. Also, note that for married and joint couples, each parent must deregister separately. 

Child Tax Credit Payment Dates

The Child Tax Credit Update Portal currently allows families to know their eligibility, manage their payments, and deregister from the monthly payments made. For example, if a new child arrives or is arriving in 2021, that's not reflected in their 2020 tax return. You'll also be able to update your postal address, marital status, income, or dependents for the Latest eligibility information.