Everything You Need To Know About Why You Should Opt Out of the Monthly Child Tax Credit

Why You Should Opt Out of the Child Tax Credit

Watch the video below to get all of the details about why you should opt out of the monthly Child Tax Credit.

Links Mentioned In This Video:

  1. Rich’s Video Explaining the Enhanced Child Tax Credithttps://teachingmillionaires.com/2021-child-tax-credits
  2. IRS Child Tax Credit portal https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021
  3. SoFi Free Money Bank Account – Get $50 when you deposit $500 – https://teachingmillionaires.com/recommends/sofi-bank-account
  4. CIT Bank High-Interest Savings Builder Accounthttps://teachingmillionaires.com/recommends/cit-bank
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Video Transcript:

I never thought I’d say it, but this video is all about how not to take money. That’s right. The new enhanced child tax credits, they’re being sent home monthly to people with dependent children. And there’s a few pretty good reasons why you may want to opt out of getting this money sent to you. Also, there’s a few of you out there that might need to opt in, even though the enrollment process is supposed to be automatic. So today I’m going to share with you everything you need to know about opting out, opting in, and if you need to update your status for these new enhanced child tax credits, you’re not going to want to miss this.
So you heard,
Right? These new enhanced child tax credits are monthly payments that are going to be sent out from the government to people with dependent children. Now, I did a whole video all about the foundation and the basics. So if you need to go back and review that, I’ll leave a link down below in the description to that specific video. But the topic for today is why you may want to opt out of receiving this money. You see the enrollment process is automatic it’s based on your tax returns. So if you had dependent children on your 2020 returns, or even for some people, your 2019 returns, then this money is going to be sent to you. Now I know it might sound crazy like, Hey rich, why would I not want money sent to me? But I can think of a few good reasons that I think we should go over right now.
The first reason is just that you don’t want to owe any tax money. You see, this is an advanced tax credit. Typically the child tax credit is really just factored in when you file your taxes at the end of the year. But because this is an advanced payment, if for some reason you got too much money, you may end up owning some of it back then. Again, I know many people love getting that big tax return. They kind of like plan on that light a little like bonus to themselves every spring. And they can use it for family travel maybe to, you know, fix up the house a little bit. So if you are used to expecting a larger return and you get too much money from these child tax credits money that you don’t really qualify for, well, then that return is going to be very, very low.
If you weren’t supposed to get the money. Another reason you may want to opt out is that you actually don’t currently qualify, but they’re going off old information information from 2020 or even 2019. I mean, we all know how it is. Kids grow up, divorces happen. Maybe maybe you get a raise and now you’re making more money while all of those changes in your lifestyle could impact whether or not you’re supposed to actually get this. So a lot can change in six months or a year. And because they’re using your old tax returns, you may need to think about, should you really be taking this money as it’s being sent to you? So whether you want that big fat tax return, or you’re just concerned about owing money later, when you go to file your taxes next year, I wanted to give you some information about a portal that is currently open, and I’ll leave a link down below in the description where you could go to opt-out or update your information.
Now, before I do that, if you haven’t already give this video a like hit that little thumbs up button, it helps spread the word to more people. And I really appreciate it. So thanks. So whether you opt out or you need to opt in is going to be a personal decision for you. I know I like to pay just a little bit in taxes or get a small return. I don’t like that big swing either way. So in my case, this might be something that specifically applies to my current situation. Therefore, let’s take a look at this portal here. You can see that you can check to see if you are currently enrolled to actually get the advanced payments. You are going to be able to opt in if you’re not, but you think you’re supposed to be getting these payments. Of course, another thing you can do here is unenrolled to stop receiving the advanced payments.
And you can also provide or update that bank account information for these monthly payments. That’s going to be something that if it’s not available currently, it will be available very soon. So I got to say, I’m a little surprised that the IRS has this portal up and running already, but I’ve noticed that it has changed every like little bit every so often. They’re constantly working on it, improving it, updating it. So it’s not functioning the way it’s supposed to, you know, give it another day, give it another week. One of the things I do want to point out is that you’re going to need an IRS login and password. I had one saved in my little like key chain, web browser thing, but if you don’t have one, you could actually start an ID Mia account. This is the type of account that a lot of official like government agencies use.
You need to upload a photo identification. It’s just to make sure there’s no fraudulent activity taking place. So be prepared to log in have a password ready to go get that text message and they send you that code. And then you had to type that in. And then it even goes so far as to then send you an email to make sure that it’s really you. But once it’s really you, here’s what it looks like. You can find out if you’re eligible. Like I said before, you can unenroll from the payments. One kind of cool thing is as they keep coming, you can see a list of your payments and a date when they should have arrived. So again, if you need to make changes to that bank account information, that direct deposit information you can do that. Of course like as mentioned before, too life happens.
If you need to change your address if had a new child marital status, maybe you made too much money. You can change all of that. Then of course, if you want to even change your mind and re-enroll, they’ll allow you to do that too now, as always, I’ll leave a link down below in the description of this video to that portal, along with the other video that I mentioned before, and if you have any questions, please leave them down below in the comments. And of course let’s help each other. A couple of key takeaways. There are income thresholds filing statuses dependent ages and all these things matter for that new enhanced child tax credit. So no one’s asking right now, Hey, government send me money, but it’s being sent. And I just want you to have all the information to know if you’re getting the proper amount.
And if you’re not how you can tell them to stop sending it to you, because they’re going to ask for it back now, of course I do mean if the amount is incorrect, how you opt out is through that portal that I mentioned, and the IRS is constantly updating it. So you can begin to check it as soon as you see this video and keep checking it until these payments stop, there should be an itemized lists of the payments and when they were deposited into your account, and if you need to update that bank account, it’s never a bad idea to have a dedicated account for just one amount of money. In fact, if you’re in the market for a new account, so far money has a free account and they give you something like $50 just for opening it and depositing 500 bucks. So if you want to check out so five money again, I’ll leave a link down below in the description. Also, if you’re new to the channel, don’t forget to hit subscribe and ring that notification bell. All right, as always I’m rich. And until next time.

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