How to Opt Out of the Child Tax Credit Advance Payments
Learn how to opt out of Child Tax Credit advance payments, understand eligibility requirements, and follow the necessary steps to manage your payments.
The IRS offered advance payments for the Child Tax Credit to help families receive financial support throughout the year rather than waiting until tax season. While this provided immediate relief for many, some taxpayers may prefer to opt out to avoid potential repayment issues or ensure a larger refund when filing taxes.
Eligibility to Cancel Advance Payments
Not all taxpayers are required to accept advance Child Tax Credit payments. Opting out is available to those who may face financial complications if they continue receiving them. The IRS allows individuals to unenroll based on filing status, income level, and potential tax liability.
Married couples filing jointly must opt out separately; if only one spouse unenrolls, the other will still receive half of the total advance payments. This is especially important for households that rely on accurate tax withholding to avoid owing money when filing their return. Taxpayers with fluctuating income—such as freelancers, business owners, or seasonal workers—may find that receiving advance payments could lead to an unexpected tax bill if their income exceeds the eligibility threshold.
Those expecting a significant change in their tax situation, such as a higher adjusted gross income (AGI) or a shift in dependents, should also consider opting out. The Child Tax Credit phases out for single filers earning over $200,000 and joint filers exceeding $400,000. Taxpayers who surpass these limits may have to repay some or all of the advance payments. Similarly, if a taxpayer claimed a dependent in a prior year but will not in the current tax year, they could be responsible for returning any overpayments.
Required Steps to Opt Out
To stop receiving advance payments, taxpayers must use the IRS Child Tax Credit Update Portal (CTC UP) on the IRS website. This portal requires identity verification through ID.me, a third-party service that confirms personal details using documents such as a driver’s license, passport, or state-issued ID. Setting up an ID.me account may take additional time if a live video call is required for verification.
Once logged in, the portal provides an option to unenroll from future payments. This must be completed by the IRS’s deadline each month, typically a few weeks before the next scheduled disbursement. Missing the cutoff means the next installment will still be received, but unenrollment will take effect for subsequent months. The IRS does not allow re-enrollment once you opt out, meaning payments will not resume until you file your tax return and claim the full credit.
If you are married and file jointly, both spouses must opt out separately. If only one person unenrolls, the other will continue receiving half of the total advance amount. This can affect tax reconciliation, as the IRS will still consider half of the payments as received, impacting the final refund or balance due.
Verifying Your Opt-Out Request
After submitting your unenrollment request, confirming that the change has been processed is necessary to avoid unexpected payments. The IRS Child Tax Credit Update Portal provides a status indicator showing whether your request has been accepted. If the status still reflects enrollment after a few days, log in again to check for errors or incomplete steps.
An email confirmation from the IRS should follow shortly after opting out, serving as official documentation. If this email does not arrive, check your spam or junk folder. If no confirmation is received, contacting the IRS may be necessary to verify your opt-out status. Long wait times are common, so using the online portal remains the most efficient way to track updates.