For many families, the monthly Child Tax Credit payments can mean the difference between financial stability and financial collapse. But for other parents, it makes more sense to stop the advance payments and claim the full credit (if any) on their 2021 tax return. If you fall into the latter group, you can opt-out of the monthly child credit payments using the IRS’s online Child Tax Credit Update Portal. (To access the portal, you’ll need either an existing IRS username or an ID.me account.)

To opt-out before you receive a certain monthly payment, you must unenrolled by at least three days before the first Thursday of the month in which that payment is scheduled to arrive (you have until 11:59 p.m. Eastern Time). The full list of opt-out deadlines can be found in the table below (note that the deadlines for opting out of the first four payments have already come and gone).

Opt-Out Deadlines for Monthly Child Tax Credit Payments

Child Tax Credit Update: A portal to update bank details and facilitate payments

Families can opt out from the remaining five payments using The Child Tax Credit Update Portal from the IRS and instead receive the credit when they file their 2021 taxes.

The maximum credit for 2021 is $3,600 for children under 6 and $3,000 for children between 6 and 17. Families can get half of their credit distributed in six monthly payments on July 15, August 13, September 15, October 15, November 15, and December 15.

Here’s how and why you may want to opt out.

How to opt out of the Child Tax Credit payments?

Families can opt out of the payments three days before the first Thursday of the month using “The Child Tax Credit Update Portal,” so that they can be unenrolled for the respective and following monthly payments.

If you filed your most recent tax return jointly, both you and your spouse must use the portal to unenroll. If only one of you opts out, the other spouse will continue to get half of the joint payments.

If you unenroll, you can’t opt back in currently. However, that option will be available in the future, according to the IRS.

What can the Child Tax Credit Update Portal be used for?

The new portal also allows users to change household information, opt out of advance monthly checks and monitor processed payments. Also, users can update personal information such as age, marital status or income or any other change that took place in 2021.

In the event you have been earning a higher or lower salary this year, you should update the IRS so you can receive the correct child tax credit amount.

How can you opt out of advance monthly checks?

Several people are willing to opt out of advance monthly checks and receive the remainder of the child tax credit next year after filling their 2021 tax return.

To do so, you should deregister at least three days before the first Thursday of the month you’re opting out of. Hence, the next deadline for those interested is October 7 by 21:00 PT or 00:00 ET.

To deregister, you should visit the Child Tax Credit Update Portal and choose the ‘Manage Advance Payments’ option. Then, you sign in with your IRS username or ID.me account and an option to opt out of the payments will appear.

Who should consider opting out of the Child Tax Credit payments?

There are a handful of reasons why you may choose to unenroll from the monthly payments, according to tax professionals.

If you typically owe taxes: If you typically owe taxes to Uncle Sam and use the CTC to offset what you owe, getting half of your 2021 credit as advance payments may mean a bigger tax bill in April 2022.

If your income increased this year: An increase in income this year could make you ineligible for the CTC and require you to pay back any advance CTC payments you received. That’s because the IRS is using your most recent tax return to determine the amount of the credit.