IRS portal is live for Child Tax Credit opt out

[ohgillian]

If you want to opt out of the advance child tax credit payments, the IRS finally launched the portal. 

www.irs.gov/credits-deductions/child-tax-credit-update-portal

(Thanks redheadbaker for pointing this out over on CEP)

[trissie18]

Thank you! I was hoping someone on this board would announce when it was open so I didn't miss it. 

ETA: Might be a stupid question but if DH and I file jointly does only one of us need to opt-out or do I need to do both of us?

[ohgillian]

Jun 22, 2021 15:00:42 GMT -5 trissie18 said:

Thank you! I was hoping someone on this board would announce when it was open so I didn't miss it. 

ETA: Might be a stupid question but if DH and I file jointly does only one of us need to opt-out or do I need to do both of us?

So it's not a stupid question -- I just assumed that I could opt us both out, but when I did it earlier, the portal specifically told me that since we file jointly, we each need to opt out. 

[trissie18]

Jun 22, 2021 15:47:16 GMT -5 ohgillian said:

Jun 22, 2021 15:00:42 GMT -5 trissie18 said:

Thank you! I was hoping someone on this board would announce when it was open so I didn't miss it. 

ETA: Might be a stupid question but if DH and I file jointly does only one of us need to opt-out or do I need to do both of us?

So it's not a stupid question -- I just assumed that I could opt us both out, but when I did it earlier, the portal specifically told me that since we file jointly, we each need to opt out. 

Thank you!

[mplsmom23]

Ok I need to research this more obviously. My husband and I file jointly. Our income is over $150,000 which I understand is the first phase out and reduces the amount per child from $3000 to $2000. We don’t make over $400k though. So we’d still be eligible? I was thinking I’d opt out of the payments but I didn’t act quickly enough and received a deposit today.

I guess I can just set it aside for when we file our taxes. We usually break even and owe or get back just a few hundred bucks. What are your thoughts about opting out?

[raangoli]

If you do not opt out, I would assume that you would be responsible to pay any back if your income changes (increases) in 2021 to a level where you would no longer be eligible or the amount you'd be eligible for decreases.

We did not opt out. We got a reduced amount deposited today. We're going to set it aside for when/if we owe when doing our taxes next year.

Edited for clarity. Said child who gets us the reduced credit was distracting me and I made no sense. 

[ellipses84]

[mention]mplsmom23 [/mention]
We are in a similar situation and I’m just going to take the monthly amount and save it for tax time. It’s also based on AGI so you may want to crunch the numbers and see what makes the most sense financially prior to doing your taxes, i.e. put more money toward retirement to reduce your AGI so you can qualified for more of the credit. I’m partially self employed so we have more options for deductions and our taxes are a little unpredictable. We would have definitely qualified the past few years. We may just have to evaluate at the end of the year.

Can anyone link a chart with more detailed info about the phase out?

[simpsongal]

I'm too lazy to check, does anyone know if you'll incur penalties for underpaying taxes if you take the credit and owe in the spring? We don't get an enhanced credit, so based on our typical refund I figure we'll owe $1000-2000.

[majesty318]

Our accountant (who happens to be my mom) told us to opt out or we would owe next year. It was the most massive PITA for identity verification. Both my H and I had to actually have video calls with the ID Me people to confirm our identities. After uploading one million documents (license, passport, utility bill etc). Once they verified us, opting out took 2 seconds.

Got a payment today though so I guess I did not do it in time.

[mplsmom23]

Jul 15, 2021 11:44:32 GMT -5 ellipses84 said:

[mention]mplsmom23 [/mention]
We are in a similar situation and I’m just going to take the monthly amount and save it for tax time. It’s also based on AGI so you may want to crunch the numbers and see what makes the most sense financially prior to doing your taxes, i.e. put more money toward retirement to reduce your AGI so you can qualified for more of the credit. I’m partially self employed so we have more options for deductions and our taxes are a little unpredictable. We would have definitely qualified the past few years. We may just have to evaluate at the end of the year.

Can anyone link a chart with more detailed info about the phase out?

The link in the first post is the IRS site which outlines eligibility. This calculator was also pretty helpful
www.hrblock.com/child-tax-credit-calculator/

We already do everything I think we can to lower our AGI - max 2 401ks, an HSA, and a dependent care FSA.

I think I’ll just set it aside for next spring.

[ssmjlm]

You have to opt out by the 3rd of the month in order to not get the monthly payment. You can opt out after today's deposit for the remainder months.

[gt7301b]

Jul 15, 2021 12:34:07 GMT -5 ssmjlm said:

You have to opt out by the 3rd of the month in order to not get the monthly payment. You can opt out after today's deposit for the remainder months.

I opted out when this was posted and I still got a payment today.  I logged in to see if I did it correctly and my account says it is still in pending status.  Hopefully they will get it right next month.

[ellipses84]

Looking through several IRS FAQs, it phases out at $50 per child for every $1000 (or fraction of) over $150k to $400k for MFJ, down to $2000 per child. $175k AGI is still a substantial credit for 2 kids, for example.

That H&R Block calculator makes it way easier to look at different scenarios though! Thanks [mention]mplsmom23 [/mention]

[ssmjlm]

Jul 15, 2021 12:56:52 GMT -5 gt7301b said:

Jul 15, 2021 12:34:07 GMT -5 ssmjlm said:

You have to opt out by the 3rd of the month in order to not get the monthly payment. You can opt out after today's deposit for the remainder months.

I opted out when this was posted and I still got a payment today.  I logged in to see if I did it correctly and my account says it is still in pending status.  Hopefully they will get it right next month.

Hmmm, I'm guessing they were overwhelmed maybe.  Hopefully by August's payment things will be fixed.

[trissie18]

Jul 15, 2021 12:18:41 GMT -5 majesty318 said:

Our accountant (who happens to be my mom) told us to opt out or we would owe next year. It was the most massive PITA for identity verification. Both my H and I had to actually have video calls with the ID Me people to confirm our identities. After uploading one million documents (license, passport, utility bill etc). Once they verified us, opting out took 2 seconds.

Got a payment today though so I guess I did not do it in time.

It's weird how different the process for verifying identity is between people. DH and I didn't have to jump through quite so many hoops - we both had to upload our license and do a scan of our faces (we file jointly). My mom was able to opt out for my brother without doing any of the identity verification (he files single). 

[trissie18]

Jul 15, 2021 11:36:50 GMT -5 raangoli said:

If you opt out, I would assume that you wouldn't be responsible to pay any back if your income changes (increases) in 2021 to a level where you would no longer be eligible or the amount you'd be eligible for decreases.

We did not opt out. We got a reduced amount deposited today. We're going to set it aside for when/if we owe when doing our taxes next year.

From what I have read - this will be different than the stimulus checks and you would be required to pay back any overages. This is why we opted out to be safe.

ETA - but I could be mistaken.

[krystee]

H&R Block shows we should get about half the credit, but we got no letter and no direct deposit, so I’m confused.

[raangoli]

Jul 15, 2021 14:29:32 GMT -5 trissie18 said:

Jul 15, 2021 11:36:50 GMT -5 raangoli said:

If you opt out, I would assume that you wouldn't be responsible to pay any back if your income changes (increases) in 2021 to a level where you would no longer be eligible or the amount you'd be eligible for decreases.

We did not opt out. We got a reduced amount deposited today. We're going to set it aside for when/if we owe when doing our taxes next year.

From what I have read - this will be different than the stimulus checks and you would be required to pay back any overages. This is why we opted out to be safe.

ETA - but I could be mistaken.

I re-reading what I wrote I clearly had it backwards. If your income increases, yes you will be expected to pay it back. 

[Poppy]

Jul 15, 2021 11:23:09 GMT -5 mplsmom23 said:

Ok I need to research this more obviously. My husband and I file jointly. Our income is over $150,000 which I understand is the first phase out and reduces the amount per child from $3000 to $2000. We don’t make over $400k though. So we’d still be eligible? I was thinking I’d opt out of the payments but I didn’t act quickly enough and received a deposit today.

I guess I can just set it aside for when we file our taxes. We usually break even and owe or get back just a few hundred bucks. What are your thoughts about opting out?

There was a thread on CEP awhile back. sicilygirl, who I believe does taxes professionally, said that since it's only a half year of payments and the phaseout is very gradual, you won't be at risk of owing back the credit unless you make over 400k if you file as married filing jointly, 200k otherwise. First two posts page two here: pandce.proboards.com/thread/627313/irs-child-credit-portal-available?page=2

The exception is that if you won't claim the kids as dependents for 2021 (eg due to a divorce agreement), you won't be eligible for the credit.

[Cappy]

Has anyone heard of eligible folks not getting it? We have an AGI of 110k and 2 young kids. The tool says we are eligible but after going through the whole ID deal it says we are pending. The only thing I can think of is that we had to amend 2020 taxes due to a $5 1099 statement coming a month late from good old Computershare. But that has already processed long ago. I'm baffled as to why we didn't get it.

[Roc A Bee]

My bf did not receive it July 15. Anyone know if a second round of deposits are going out? His refund took forever as well as he changed his status to head of household and claimed one child since his custody arrangement changed in 2020.

[keweenawlove]

We didn't opt out and hadn't seen a deposit. Got a physical check in the mail today after all of our previous deposits going right to direct deposit.

[sometimesrunner]

Jul 15, 2021 12:34:07 GMT -5 ssmjlm said:

You have to opt out by the 3rd of the month in order to not get the monthly payment. You can opt out after today's deposit for the remainder months.

I believe you have to opt out 3 days before the first Thursday of the month to stop the payment for that month. 

[quesyrah]

Jul 19, 2021 11:46:32 GMT -5 Cappy said:

Has anyone heard of eligible folks not getting it? We have an AGI of 110k and 2 young kids. The tool says we are eligible but after going through the whole ID deal it says we are pending. The only thing I can think of is that we had to amend 2020 taxes due to a $5 1099 statement coming a month late from good old Computershare. But that has already processed long ago. I'm baffled as to why we didn't get it.

We have an AGI of about $80K and are also listing as pending. We also did not get the third stimulus. We filed an amended tax return in early February that has not been processed yet and I was told by a tax accountant recently that this is why.

[Susie]

We haven't seen a direct deposit, but we got a letter today dated 7/2 with the amount we're supposed to get.  We've moved since our 2020 return was filed, so mail forwarding delayed it.  I'm guessing we'll also get a paper check (also delayed due to mail forwarding) since we haven't had a refund in several years to have a direct deposit account on file.  We're in the phase out range, but have 2 kids under 6.

Is it possible to update our address for this stuff so we don't have it going to our old house through next April when we'll file a 1040 with this address for the first time?

and/or can you specify a direct deposit account after the first one?

[statgirl]

Jul 19, 2021 18:46:45 GMT -5 Susie said:

We haven't seen a direct deposit, but we got a letter today dated 7/2 with the amount we're supposed to get.  We've moved since our 2020 return was filed, so mail forwarding delayed it.  I'm guessing we'll also get a paper check (also delayed due to mail forwarding) since we haven't had a refund in several years to have a direct deposit account on file.  We're in the phase out range, but have 2 kids under 6.

Is it possible to update our address for this stuff so we don't have it going to our old house through next April when we'll file a 1040 with this address for the first time?

and/or can you specify a direct deposit account after the first one?

If one of you (either you or your husband) can get through the ID.me process, you can update the bank account info (and maybe the address…I think I saw that). We got the first stimulus deposited and gave the IRS our account info for withdrawing for taxes, and we still got a paper check so I logged in and entered the bank account info (again).

[Cappy]

Jul 19, 2021 16:40:27 GMT -5 quesyrah said:

Jul 19, 2021 11:46:32 GMT -5 Cappy said:

Has anyone heard of eligible folks not getting it? We have an AGI of 110k and 2 young kids. The tool says we are eligible but after going through the whole ID deal it says we are pending. The only thing I can think of is that we had to amend 2020 taxes due to a $5 1099 statement coming a month late from good old Computershare. But that has already processed long ago. I'm baffled as to why we didn't get it.

We have an AGI of about $80K and are also listing as pending. We also did not get the third stimulus. We filed an amended tax return in early February that has not been processed yet and I was told by a tax accountant recently that this is why.

Sorry to hear that you are in the same boat, and thank you for sharing. I knew to delay the amended return until after that 3rd stimulus but unfortunately it looks like the most likely cause of this delay. I'll check again next month otherwise consider it forced savings

[quesyrah]

Jul 20, 2021 6:50:44 GMT -5 Cappy said:

Jul 19, 2021 16:40:27 GMT -5 quesyrah said:

We have an AGI of about $80K and are also listing as pending. We also did not get the third stimulus. We filed an amended tax return in early February that has not been processed yet and I was told by a tax accountant recently that this is why.

Sorry to hear that you are in the same boat, and thank you for sharing. I knew to delay the amended return until after that 3rd stimulus but unfortunately it looks like the most likely cause of this delay. I'll check again next month otherwise consider it forced savings

We thought the right thing to do was file the amended return right away. Turns out that we should have waited for the IRS to contact us. Oh well. Lesson learned.

The tax accountant that we spoke to said that at this point we should just expect to claim it on our taxes next year :/

[ellipses84]

Jul 19, 2021 18:46:45 GMT -5 Susie said:

We haven't seen a direct deposit, but we got a letter today dated 7/2 with the amount we're supposed to get.  We've moved since our 2020 return was filed, so mail forwarding delayed it.  I'm guessing we'll also get a paper check (also delayed due to mail forwarding) since we haven't had a refund in several years to have a direct deposit account on file.  We're in the phase out range, but have 2 kids under 6.

Is it possible to update our address for this stuff so we don't have it going to our old house through next April when we'll file a 1040 with this address for the first time?

and/or can you specify a direct deposit account after the first one?

I’m not sure if you can do it through the IRS portal or not. The USPS is a mess as we all know. They now charge like $20 to extend mail forwarding, but I highly recommend you do it. We moved in November but got a stack of forwarded mail including Christmas cards in May. I’m still receiving forwarded mail this week.

[meganiv]

Jun 22, 2021 10:24:47 GMT -5 ohgillian said:

If you want to opt out of the advance child tax credit payments, the IRS finally launched the portal. 

www.irs.gov/credits-deductions/child-tax-credit-update-portal

(Thanks redheadbaker for pointing this out over on CEP)

Thanks a lot for the info!
I was trying to do it the other day and i couldn't unfortunately(((
Will try to contact irs customer service and see if they will be able to help me. 
Is someone else having troubles too?