The first deadline to sign up for advance monthly payments from the Internal Revenue Service (IRS) under the Biden Administration’s “Child Tax Credit” (CTC) extension was June 28.
This means that if you are eligible for the payments, the IRS has your personal and dependent information, and you did not opt out on or before that date, you would receive the first monthly payment on July 15.
According to a CNET report this week, taxpayers who prefer a full refund payment next year during tax season should cancel, through the IRS website, each of the scheduled monthly payments.
Cancellation of advance payment subscriptions must be made by the first Wednesday of each month
The process must be done every first Wednesday of the month between June and December.
The cancellation deadline for the second payment would be August 2 prior to the official due date of the next mailing on August 13.
Individuals will continue to receive the monthly payments due to them, according to the IRS schedule, until they are able to process the cancellation request.
Who should unsubscribe from monthly CTC payments?
In a June 22 press release, the office clarified that the feature to cancel monthly payments may be useful for any family who no longer qualifies for the Child Tax Credit or believes they will not qualify when they file their 2021 return.
This year, as a result of the passage of the “American Bailout Plan,” payments under the Child Tax Credit will be sent in advance to eligible families who request it.
Up to $3,600 per child in the household
In addition, the maximum amount per child in the household was increased to $3,600.
The payment will be up to $300 per month for each child under 6 years of age and up to $250 per month for each child 6 to 17 years of age.
You can apply for monthly payments through Non-Filer Sign-up.
The IRS has called on low-income families who are not required to file taxes with the agency to use the new “Non-Filer Sign-up” online tool.
“Eligible families who already filed or plan to file 2019 or 2020 tax returns should not use the Non-Filer Sign-up tool. Once the IRS processes their 2019 or 2020 tax return, the information will be used to determine eligibility and issue advance payments,” the agency explained.
Families wishing to claim other tax benefits, such as the “Earned Income Tax Credit” must file a regular tax return. For them, the fastest and easiest way to file a return is the Free File system, available only on IRS.gov.