The taxpayers that qualify for the child tax credit have started receiving advanced payments of the credit in July. Many thought that this was a stimulus payment for those that have children under the age of 18.
Though it’s similar to the way that it works, these payments are not your stimulus check. While you weren’t able to opt-out of stimulus check, the only way for you to claim it later when you file your federal income tax return was to have your payment information missing from the IRS.
Who gets the child payments?
The child payments are given to those that qualify for the child tax credit. Whether you have a single child or many, you receive $250 to $300 per children. The amount depends on the child’s age. For children under the age of 6, you will get $300 and $250 for children between 6 and 18 years of age.
Though you can reject these advanced payments if you start receiving them, it would make sense as it drains the total credit amount you can claim on your federal income tax return. However, it’s an excellent way to offset some of the cost of raising a child, whether they’re five or ten.
There is no special stimulus payment for children regardless of age. The Internal Revenue Service and Treasury send these payments as part of the child tax credit. If you’re expecting another stimulus payment as we did in 2020 and 2021, don’t wait.
A new stimulus payment is not in the talks, and considering the economic impacts of COVID-19 have already been dropped to almost zero; there won’t be a new economic impact payment.
Rejecting advanced payments
Want to stop receiving these payments that reduce the child tax credit you’re eligible to claim on your federal income tax return? Use the Internal Revenue Service’s child tax credit update portal to unenroll from the advanced payments. It takes only a few clicks to unenroll, and in the event that you get a reduced child tax credit, you won’t owe more to Uncle Sam.