The IRS has been hard at work putting funds in the hands of parents as we near the middle of 2021. As many of you are aware, the IRS provides child tax credits on annually filed tax returns. For 2021, the IRS wants to get these funds in the hands of taxpayers early. The IRS will be sending out a letter to qualified individuals notifying of the intent to issue advanced child tax credit payments. Advance payments are scheduled to be made at 50% of the estimated annual CTC during 2021. The payments are slated to be $300 for each child under the age of 6 and $250 for children age 6-17. The monthly payments will be made from July through the end of 2021.
If you would like to opt out of the advance CTC payments, the IRS allows you to unenroll. To unenroll, you’ll need to take a few complicated steps. Here’s the IRS link If you’ve previously signed in to the IRS website, you’ll just need your login information. If not, you’ll need to create an ID.me account. Registering for an ID.me account is more difficult than you might imagine. It requires two forms of picture ID and after multiple times of submission, you may need to set up a video call to verify your identity. Unfortunately, it is a cumbersome process.
The IRS has tried to provide a way for taxpayers to receive child tax credit funds early, amid the pandemic. The only taxpayers it will affect negatively are those who do not want the funds. It may be easier and less stressful to accept the advanced payments rather than go through the tedious steps to unenroll.
If you have any questions about your particular situation, please don’t hesitate to give us a call at (314) 993-4285.
