MACON, Ga. — As some parents anticipate the payout from the child tax credit, others ask how to send it back. Viewer Shirley Williams sent us this question, "How do you opt-out of the child tax credit?"
She added, "I'd rather do it at the end of the year instead of receiving it every month. I went to the IRS.gov site and couldn't find out how to do it." After receiving several comments about that, we set out to verify.
We spoke with CFP Becca Wilton and CPA Terry Parker to get answers. Let's recap, starting with the basics.
"Instead of it being the one-time tax credit that you get when you file your tax return, they're going to start making monthly payments. Expect the payments to hit your checking or savings account as early as July 15. This will be $300 for your child if they're under six and $250 if your child is over the age of six," Wilton explains.
So we asked, can parents opt out? The answer -- absolutely.
CPA Terry Parker tells how.
"They're going to take information from your 2020 tax return if you filed it already or your 2019 return if you haven't filed a 20 yet and go ahead and, let's say, prequalify you for the credit, and they will start that on July 15. You can go on an IRS portal or website and opt-out," he says.
Now that you know you can, how do you do it?
According to IRS Commissioner Charles Rettig, individuals who want to opt-out can.
"People who have changed family circumstances or people who want to opt-out of the, what will be monthly payments for CTC will be able to use the portal beginning July 1," he says.
Parents that filed their taxes before the May 17 deadline will automatically receive monthly payments. By July 1, two portals will be opened by the IRS. One will be used to opt-out of receiving payments.
As more information becomes available, taxpayers can check www.irs.gov.
If you have a question you'd like our team to verify, call our newsroom at 478-752-1309 or send us a message to firstname.lastname@example.org.