It’s Child Tax Credit Time, Here Are All The Important Dates
The first monthly payments for the child tax credit are scheduled to hit bank accounts on July 15. There are some important dates to keep in mind for upcoming payments, as well as if you are looking to opt-out of payments in the future.
You can opt-out any time this year and stop receiving your monthly payment. This means even if you receive your first payment in July, you can change your mind and opt-out of the remaining payments.
The important date to remember for this is three days before the first Thursday of the month. This will ensure you do not receive NEXT month’s payment, meaning it is already too late for July.
The rest of the payment schedule is as follows:
- August 13
- September 15
- October 15
- November 15
- Dec 15, 2021
Keep in mind, if you opt-out of monthly payments, you cannot re-enroll. Once you have opted out, then you will only have the option of receiving the rest of the money in a lump sum during next year at tax time.
Alternatively, you also have the option of simply receiving all of the tax credit as one lump sum next year, but you will need to log into the IRS online portals in order to formally opt-out of the monthly payments. There is no difference in tax treatment whether or not you receive the credit in a lump sum or monthly distribution. The credit is fully refundable, and you will not need to pay it back if you do not exceed the income limits.
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