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Child credit opt out
I didn’t know this was an option until after the last deadline to opt out of July payment. Has anyone done it? I don’t want these monthly payments. My husband and I will make close to $40k more this year than last year because of OT/ raises. I don’t want to owe money back.
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Posted 7/15/21 5:55 PM  |
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angelicd77
LIF Adolescent
Member since 12/13 794 total posts
Name:
Kim
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Child credit opt out
I havent done it, but I have heard there is an option to do it on the IRS website.
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| Posted 7/15/21 6:01 PM |
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soontobemommyof2
My boys...my everything <3
Member since 4/15 3635 total posts
Name:
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Child credit opt out
This money will be owed? I didn’t think that was the case.
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| Posted 7/15/21 7:08 PM |
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Re: Child credit opt out
Posted by soontobemommyof2
This money will be owed? I didn’t think that was the case.
You either get it now or at tax time as if I understand correctly, this is the child credit you get at tax time, spaced out.
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| Posted 7/15/21 7:10 PM |
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soontobemommyof2
My boys...my everything <3
Member since 4/15 3635 total posts
Name:
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Re: Child credit opt out
Posted by windyweather21
Posted by soontobemommyof2
This money will be owed? I didn’t think that was the case.
You either get it now or at tax time as if I understand correctly, this is the child credit you get at tax time, spaced out.
That’s what I thought. I’m not sure why the OP said it’ll be owed? Maybe I missed something.
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| Posted 7/15/21 7:26 PM |
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Re: Child credit opt out
Trying to wrap my head around this.... please correct me if I am wrong.
We always pay a couple of thousand in federal taxes. If I am receiving this credit monthly, aren't I going to owe the money back when I do my 2021 income taxes? We also don't really need the extra money a month. I'm not sure how we even qualified to get it.
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| Posted 7/15/21 8:28 PM |
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BFNY516
LIF Adult
Member since 7/20 1187 total posts
Name:
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Child credit opt out
You only pay back if you received more than you’re owed.
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| Posted 7/15/21 8:53 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19454 total posts
Name:
L
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Re: Child credit opt out
https://www.cnet.com/personal-finance/taxes/heres-who-isnt-eligible-for-the-300-child-tax-credit-payment-this-week/ this may help answer your questions. My friend opted out. He said it felt very invasive. You have to let the system scan your face. You have to upload photos of your driver’s license. Just don’t spend the extra money.
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| Posted 7/15/21 8:58 PM |
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MrsT809
LIF Adult
Member since 9/09 12167 total posts
Name:
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Re: Child credit opt out
Posted by soontobemommyof2
Posted by windyweather21
Posted by soontobemommyof2
This money will be owed? I didn’t think that was the case.
You either get it now or at tax time as if I understand correctly, this is the child credit you get at tax time, spaced out.
That’s what I thought. I’m not sure why the OP said it’ll be owed? Maybe I missed something.
If you qualify based on last year's numbers they'll send you the monthly payment (unless you opted out). However, for this credit if your 2021 income ends up pushing you over what should qualify you have to repay it.
If you aren't able to opt out bc you missed the deadline, just throw it in a savings account where it's out of sight until tax time.
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| Posted 7/15/21 9:07 PM |
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Re: Child credit opt out
Posted by BFNY516
You only pay back if you received more than you’re owed.
I am receiving more than I will be owed for 2021 because of my 2020 income I filed 2020 taxes in March so they go based on that but 2021 I likely won’t get any of the child tax credit. This year I got about $5k back but I just want to hit close to zero. I’m going to have to call my accountant tomorrow. I tried going online and I got an error with the opt out portal
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| Posted 7/15/21 9:09 PM |
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mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
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Re: Child credit opt out
That's because he signed in with ID.me
If you have an IRS account you just log in with it. It took me 2 min and I didn't have to do any of that.
Here's the website to unenroll from advance payments: Child Tax Credit Update Portal Once you are in there, just click on "Manage Advance Payments"
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| Posted 7/15/21 9:29 PM |
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mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
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Re: Child credit opt out
Posted by TwinMommyToBoys
Posted by BFNY516
You only pay back if you received more than you’re owed.
I am receiving more than I will be owed for 2021 because of my 2020 income I filed 2020 taxes in March so they go based on that but 2021 I likely won’t get any of the child tax credit. This year I got about $5k back but I just want to hit close to zero. I’m going to have to call my accountant tomorrow. I tried going online and I got an error with the opt out portal
I think you are misunderstanding... Even if making 40k more from last year, you won't end up owing anything at tax season. You are only getting $$ for half the year, between now and Decemeber. The remaining half would be given to you when you file your taxes IF YOU QUALIFY for the full amount.
So for example, if you have a child who is 5 they would qualify for $3600 **if you fall within the income requirements**. You would get $300 a month between now and december, totaling $1800 (or half). But if your income went up, you would not be entitled to much more than that $1800 at tax filing. However, as long as you and your spouse are under 400k a year together, you still qualify for 2k per child (the way it used to be). So in other words, even if you didn't qualify for any of new advance payment money, you are still guaranteed $2000. If you are given advance payments right now, you'll only be getting around $1800. Meaning, you will still be EARNING $200 at tax season. You will not owe.
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| Posted 7/15/21 9:35 PM |
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KarenK122
The Journey is the Destination
Member since 5/05 4431 total posts
Name:
Karen
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Child credit opt out
We just opted out today. I would have done it sooner but we should not have qualified so I'm not sure why we got it. I have an IRS account so it took me 2 minutes but my husband did not and he had to do the face scan and scan his license. He wasn't happy lol.
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| Posted 7/15/21 11:30 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54917 total posts
Name:
..being a mommy and being a wife!
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Re: Child credit opt out
Why are they even giving out advanced payments?
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| Posted 7/16/21 8:32 AM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Child credit opt out
Posted by NervousNell
Why are they even giving out advanced payments?
It's part of Biden's American Rescue Plan. Based on the wording of the letter my assumption is that it's being advanced to help stimulate the economy now instead of later.
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| Posted 7/16/21 8:43 AM |
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blu6385
Member since 5/08 8351 total posts
Name:
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Re: Child credit opt out
Yes we opted it out. Both of you will have to opt out. I think you have to do it soon if you don’t want it starting August. You do have to have account on the irs site or create one.
And there of course a cap Limit on this also  so if you make over 150,000 they start deducting how much you get. if you get too much in advanced you will have to “pay” it back meaning your deductions won’t be as much.
Message edited 7/16/2021 9:47:59 AM.
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| Posted 7/16/21 9:46 AM |
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Re: Child credit opt out
Posted by NervousNell
Why are they even giving out advanced payments?
So it looks like you are getting another stimulus when in reality people are going to be pissed at tax time when they don’t get this money in a big chunk like they are used to.
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| Posted 7/16/21 9:47 AM |
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blu6385
Member since 5/08 8351 total posts
Name:
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Re: Child credit opt out
Posted by windyweather21
Posted by NervousNell
Why are they even giving out advanced payments?
So it looks like you are getting another stimulus when in reality people are going to be pissed at tax time when they don’t get this money in a big chunk like they are used to.
Not really cause they raised the amount. I think it used to be $2000 per child now it’s $3000 per child (if you have a child 6 and over) since they started only halfway through the year you will get the same amount you do when you always file for this year at least.
This is of course of you don’t go over the tax credit.
Also it’s been stated everytime that this is an advanced tax credit. I don’t think anyone’s trying to hide it as another stimulus
ETA : they are doing it because they say it will help lift millions of children out of poverty because the parents are getting it throughout the year rather than at the end of the year. Also those who may not have qualified for it in the past will now qualify for it.
Message edited 7/16/2021 9:52:02 AM.
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| Posted 7/16/21 9:50 AM |
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Re: Child credit opt out
Posted by blu6385
Posted by windyweather21
Posted by NervousNell
Why are they even giving out advanced payments?
So it looks like you are getting another stimulus when in reality people are going to be pissed at tax time when they don’t get this money in a big chunk like they are used to.
Not really cause they raised the amount. I think it used to be $2000 per child now it’s $3000 per child (if you have a child 6 and over) since they started only halfway through the year you will get the same amount you do when you always file for this year at least.
This is of course of you don’t go over the tax credit.
Also it’s been stated everytime that this is an advanced tax credit. I don’t think anyone’s trying to hide it as another stimulus
ETA : they are doing it because they say it will help lift millions of children out of poverty because the parents are getting it throughout the year rather than at the end of the year. Also those who may not have qualified for it in the past will now qualify for it.
Thank you. We miss it by a year.
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| Posted 7/16/21 10:11 AM |
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NervousNell
Just another chapter in life..
Member since 11/09 54917 total posts
Name:
..being a mommy and being a wife!
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Re: Child credit opt out
DH just read into it and opted out.
He said I have to do it as well since we file jointly.
I'll do it today.
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| Posted 7/16/21 12:02 PM |
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Child credit opt out
I was able to do it today, my husband did it as well, I kept trying yesterday and got error messages today worked
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| Posted 7/16/21 12:36 PM |
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MrsO
Big Brothers to Be
Member since 1/07 4520 total posts
Name:
Maureen
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Re: Child credit opt out
Posted by TwinMommyToBoys
I didn’t know this was an option until after the last deadline to opt out of July payment. Has anyone done it? I don’t want these monthly payments. My husband and I will make close to $40k more this year than last year because of OT/ raises. I don’t want to owe money back.
You can still opt opt. Both you and your husband need to opt out. Do it now so the August payment won't come
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| Posted 7/21/21 3:56 PM |
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newlywedT
LIF Adolescent
Member since 9/11 792 total posts
Name:
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Child credit opt out
Tax stuff is always so complicated.
Why do people opt out of this?
Is it only so they get the money during tax time instead?
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| Posted 7/22/21 7:14 PM |
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KarenK122
The Journey is the Destination
Member since 5/05 4431 total posts
Name:
Karen
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Re: Child credit opt out
Posted by newlywedT
Tax stuff is always so complicated.
Why do people opt out of this?
Is it only so they get the money during tax time instead?
For me personally, I opted out because I think I was given it in error. If everything we read about it, we are not in the qualification criteria. So knowing how inept the government and iRS is, they probably screwed something up and I do not feel like paying it back next April.
And also, I don't believe anyone who was not financially affected by Covid should be receiving any payments, and thankfully we were not.
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| Posted 7/22/21 10:39 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19454 total posts
Name:
L
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Re: Child credit opt out
Posted by KarenK122
Posted by newlywedT
Tax stuff is always so complicated.
Why do people opt out of this?
Is it only so they get the money during tax time instead?
For me personally, I opted out because I think I was given it in error. If everything we read about it, we are not in the qualification criteria. So knowing how inept the government and iRS is, they probably screwed something up and I do not feel like paying it back next April.
And also, I don't believe anyone who was not financially affected by Covid should be receiving any payments, and thankfully we were not.
you would need to make more than $400,000 to not qualify.
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| Posted 7/22/21 11:21 PM |
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