More on Advanced Child Credit Opt-Out

As discussed in our June 24, 2021 post, the IRS has announced the procedure for taxpayers to optionally opt-out of receiving the advance child credit payments.  It is important to note that spouses that file a joint income tax return must each separately opt out of receiving the advance child credit payments.  If only one spouse opts out, then the IRS will send half of the joint payment amount.

Taxpayers who wish to opt out can select “unenroll from advance payments” on the IRS portal, which is: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal

The due date for opting out of the first advance child credit payment that is scheduled for July 15, 2021 was June 28, 2021.  Taxpayers who missed that due date can still opt out so that they will not receive payments scheduled for the remainder of 2021.  Generally, a taxpayer’s opt out must occur about 15 days before the next scheduled date, or the opt out will not become effective until the following payment.

For example, a taxpayer who opts out after June 28, 2021 will still receive the advance payment scheduled for July 15, 2021, but if the taxpayer opts out by August 2, 2021, the taxpayer will not receive any advance payments after the July 15, 2021 payment.  A taxpayer must opt out of receiving the payments only once for the 2021 tax year.

See our May 18, 2021 post for additional background regarding the monthly advance payments of the child credit.