It is not too late to sign up, but you need to do so soon.
The deadline to opt in is Nov. 15. However, if you haven’t opted in before now, you’ll be getting a big boost.
The payments were spread over six months, with a portion being sent monthly equivalent to about $300 per child. Those who didn’t opt in previously can get the payments in one big check.
Part of the American Rescue Plan passed in March, the existing tax credit, an advance payment program of the 2021 tax return for people who are eligible, increased from $2,000 per child to $3,600 per child under the age of 6, with $3,000 for children between 6 and 16 years of age. Eligible families can receive a monthly payment of up to $300 per child.
When you file your 2021 tax return in 2022, you will need to report the amount of monthly child tax credit payments you received in 2021. All those who opted in for any length of time will receive a letter from the IRS in January with the amounts that need to be reported. If you want to unenroll for November and December, the deadline is Nov. 11.
The status of the child tax credit in 2022 is currently hanging in the balance. If the House and Senate pass the $1.75 trillion reconciliation bill, the child tax credits would be extended for another year. The program is projected to cut child poverty by more than half, according to the U.S. Department of the Treasury.