The IRS has launched their Child Tax Credit Update Portal to assist taxpayers in managing and monitoring advance monthly payments of the Child Tax Credit. Taxpayers can use the portal to verify their eligibility for the payments, unenroll, or opt-out from receiving the monthly advance payments. Opting out of the advance payments will allow taxpayers to take a lump sum child tax credit when they file their 2021 federal tax return.
Un-Enrolling from Advance Payments
Taxpayers who would rather receive a lump sum Child Tax Credit on their 2021 tax return can use the Update Portal to un-enroll or opt-out of receiving the advance payments. The Child Tax Credit Update Portal enables also allows taxpayers to quickly un-enroll or opt-out of advance payments if they do not qualify to receive them. Situations in which this may occur include:
- Their income in 2021 is too high to qualify them for the credit.
- Someone else (an ex-spouse or another family member, for example) qualifies to claim their child or children as dependents in 2021.
- Their main home was outside of the United States for more than half of 2021.
Reminder: If a married couple filling MFJ wish to unenroll, each must unenroll individually. If only one individual unenrolls, the other will receive half of the joint payment they were supposed to receive.
Accessing the Update Portal
In order for a taxpayer to access the Child Tax Credit Update Portal, they must first be able to verify their identity. Taxpayers will need an existing IRS username or ID.me account or a valid form of photo identification. The IRS provides alternative options for taxpayers who cannot verify their identity.
From the IRS: "ID.me is a trusted IRS technology partner in helping to keep personal information safe. They specialize in digital identity protection and help the IRS make sure you're you—and not someone pretending to be you—before we give you access to your information."
Checking the Status of Payments, Updating Personal Information
Taxpayers will be able to use the Child Tax Credit Update Portal to check on the status of their payments, update bank account information, update their mailing address as well as update their family status and income. These features will be rolled out beginning in late June through fall.