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For those taxpayers that would like to opt out of the Advanced Child Tax Credit payments.

The website to do so is below.  Please consider how receiving or not receiving these payments in advance can affect your tax return.

Receiving a credit as an advance payment can have a negative affect on your tax return.  If you have owed in the past, you will likely owe more.  If you have received a large refund in the past, your refund will be smaller.  What to consider is whether or not receiving these payments will cause you to owe if you have received a refund in the past.

The formula for determining tax liability, is the calculated income tax (based off your taxable income) less non-refundable credits you qualify for plus other taxes equals tax liability.  Then determine total payments, what has been withheld plus estimates paid plus any refundable credits you may qualify for.  This total payments is then reduced by the tax liability to determine if there is amount owed or a refund.

When you receive advance payments of credits, these credits cannot be considered when calculating the tax owed or refund.

If you would like clarification for your situation, please reach out to your tax preparer.

https://www.irs.gov/credits-deductions/child-tax-credit-update-portal