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Opt-out deadline for October child tax credit payment is coming up

The third installment of the $250 - $300 monthly advance payment went out Wednesday and the deadline to opt-out of the October stipend is days away.

The September advance child tax credit monthly payment went out Wednesday, with 35 million Americans having it arrive in their bank accounts and more still on the way, the IRS said

For those wanting to stop the monthly payments or to start having the money sent directly to their bank, they have a few more days to make the request.

The IRS said Wednesday that eligible Americans have until 11:59 p.m. EDT on October 4 to opt-out of the monthly payment. That's also the deadline to change the delivery option. Changes can be made at this link. The update will apply to October and subsequent payments.

The credit is $3,600 annually for children under age 6 and $3,000 for children ages 6 to 17. Eligible families who did not opt-out will receive $300 monthly for each child under 6 and $250 per older child. 

The benefits begin to phase out at incomes of $75,000 for individuals, $112,500 for heads of household and $150,000 for married couples. Families with incomes up to $200,000 for individuals and $400,000 for married couples can still receive the previous $2,000 credit.

In the past, eligible families got a credit after filing their taxes — either as a lump-sum payment or a credit against taxes owed. But now six months of payments are being advanced monthly through the end of the year. A recipient receives the second half when they file their taxes.

The IRS is still urging people who are eligible to receive the payments to sign up. Those who aren't tend to be people who don't normally file a tax return because their incomes are too low. More information can be found at this IRS link.

The expanded child tax credit, which was passed as part of the American Rescue Plan COVID relief bill in March, is set to lapse after a year, though President Joe Biden has proposed extending it through 2025 and would like it to be made permanent.