With Monday being the final day for parents to opt out of the child tax credit, they may want to weigh their options quickly before they’re out of time.
The unenrollment cutoff date is Monday, Aug. 30 at 9 p.m. PT, 12 a.m. ET.
One reason to opt out is to receive a bigger refund in 2022. These payments are early tax credits from people’s 2021 tax returns they’ll file next year- not money given out by the government like the stimulus checks.
Another reason is that there may be a big change whether it’s a child’s age or some other reason, that could actually end up costing you more next tax season because you’re receiving money you’ll have to pay back.
If a child is aging out of a certain age that gets you a bigger refund and you’re getting paid for that, you’ll owe it back when it comes time to file.
Once you opt out though, there isn’t a way to re-enroll. There should be a way to to that next month.
All in all, the biggest reason someone may want to opt out is to avoid the IRS giving them too much money and them needing to pay it back.
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