Advance Child Tax Credit - How to Opt Out

child tax credit taxes Jun 22, 2021

The Advance Child Tax Credit Portal has finally arrived and I'm going to walk you through every step. If you have questions about what the Advance Child Tax Credit is and if you qualify, check out my prior blog post covering all the details.

What You Need To Know

The IRS will begin issuing the Advance Child Tax Credits on July 15th. If you do not wish to receive them, you must opt out. See below for step by step guides on how to do that.

You should opt out if you have a child under the age of 18 and expect your 2021 income to be higher than the following thresholds:

Married Filing Jointly: $150,000
Head of Household: $112,500
Single: $75,000

For the opt out to be granted, you need to have it processed 3 days before the first Thursday of the month. That's June 27, 2021 if you don't want any payments. If you missed that deadline, you will receive the first advance, but can still opt out of all future payments.

Once you opt out, it is permanent. You cannot opt back in.

If you file jointly with a spouse, each spouse had to individually opt out.

If you opt out and end up qualifying, then you will receive all payments in full when your 2021 tax return is filed.

How Do I Opt Out of the Advance Child Tax Credit?

I got your back, friend. There are two ways to opt out. I will cover both in detail.

1. Log into your IRS Account. This way only takes about 5 minutes, but is only possible if you already have an IRS Account. Most people don't.

2. If you don't have an IRS Account, you'll need to verify your identity through ID.me. This process took about 30 minutes.

Step By Step Instructions

1. Go to the Child Tax Credit Update Portal. Click "Unenroll From Advance Payments."

2. Choose whether you will sign in through your IRS Account or create an account with ID.me.

Opting Out Through Your IRS Account

1. Log into your IRS Account. You know the drill. Username, password, 2 step verification, confirm login history, stand on your head.

2. Your account will tell you your eligibility, whether or not you've received payments, and have a button to unenroll if you are eligible. Go ahead and click that "Unenroll From Payments" button.

3. Read their commentary and click "I Understand and Want to Proceed."

4. Once again, confirm that you want to unenroll, check the box, and press submit.

5. You'll see this screen confirming you have unenrolled. That's it. Log out and you're done.

Step By Step Instructions to Opt Out Through ID.me

If you're not so lucky to have an IRS Account, you'll need to verify your identity through ID.me. The IRS is not messing around with this. Be prepared to upload a picture of your driver's license and then do a live video where they confirm you actually look like your driver's license. Our test subject took multiple tries to get everything confirmed. If you're using a computer make sure you have a webcam. Ok, here we go.

1. Create an account. Enter the email address you want to use and a password.

2. Read the fine print and press continue

3. Set up 2 Step Verification with Your Mobile Number.

4. Type in Your Phone Number & Click Continue

5. Type in the code sent to your phone and click continue.

6. Click Generate Recovery Code and Save that, just in case. Click Continue.

7. Upload a picture of your driver's license. You'll need both front and back. Make sure the picture is super clear, with no glare, and good lighting. We had to do this step twice. If you're using a mobile phone, make sure turn the phone horizontal when taking the picture to get as close up as possible.

8. Consent for the collection of biometric data.

9. Choose whether you will take a picture with your device or you will upload the photos.

10. Upload front & back pictures of your drivers license.

11. Wait for the software to Verify Your Identity.

12. Click "Take a Selfie." You can use your mobile device or computer webcam. Follow the directions and be prepared for a weird cartoony looking picture.

13. Select the type of phone you want to verify with. Mobile phone is easiest.

14. Enter your Social Security Number.

15. Confirm your information & click continue.

16. You'll get confirmation your identity was verified. Click "Allow" to allow ID.me to share that info with the IRS.

17. You'll be taken to the IRS' website. This page will tell you your eligibility, whether or not you've received payments, and have a button to unenroll if you are eligible. Go ahead and click that "Unenroll From Payments" button.