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Child Tax Credit Advance Unenrollment: 10 Steps!

Here are some simple facts that you may not know about the Child Tax Credit advance payments…

  1. It’s NOT free money! You are borrowing the money from your 2022 tax deduction. So, you might be thinking, “What’s the problem with that?” The problem arises when you end up owing more in taxes in 2022.
  2. The advancement money will have to be paid back! Yes, it will have to be paid back, but not in a traditional sense. Rather than receiving a CTC deduction from your taxes in 2022, you will either not get a CTC or you will need to pay more in taxes.
  3. You can always opt-out of receiving the advancements. Remember, it is not free money! It is an ADVANCEMENT. I’d be concerned about taking any advancement of IRS funds because of two big reasons: First, you dont know what last minute changes in the tax laws will be. Second, you dont know what your tax liability will be during tax season. So it is in my opinion that you opt-out as soon as possible.  I definitely foresee troubles coming for those who do not. 

If you want to opt out, follow these 10 steps!

Here are the steps to opt out of the Child Tax Credit Advance. (Note. If you already  have an IDme account, you can skip to step 5.)

  1. You will need to goto IDme and establish an account. By visiting Or you can follow the link on the IRS website to create an account. The purpose of this account is to verify your identity to prevent identity theft

  2. In order to create an IDme account, you will need a government ID. You will need to submit a picture of your ID using a phone or computer. I recommend using your phone.

  3. If there is an issue with your ID, then you will be connected to a person via a live video conference. You will be asked a few questions and if you can prove who you are, then they will approve your IDme account.

  4. Once your IDme account is activated, then you will be able to log into the IRS website.

  5. Goto the IRS Advance Child Tax Credit Payments in 2021 website by clicking this link:

  6. Scroll down to where you see “Manage Payments.” And click on the button that says “Manage Payments.”

  7. This will take you to the Child Tax Credit Update Portal. Scroll to the bottom and click the button that says “Manage Advance Payments” (Note: If you do not have an IDme account, go back to step 1)

  8. Once you click the “Manage Advance Payments” button, You will be taken to the “ Sign In or Create a New Account” page. Now you will need to log in by clicking the button that says “Sign in with”

  9. When you log in, it will send you a verification code to the device of your choice.

  10. Once you successfully enter the verification code, you will be logged in on your own Child Tax Credit Update Portal dashboard. From here, you will need to scroll down the page and find the opt-out link. Once you opt out, you will be asked to verify that you want to opt out. The option that allows you to opt out will not be easy to find. They made it small so you cant see it. However, once you find it, you are done. You will see a confirmation that you opted- out. Now you can log out, by clicking the log out button on the top right of your screen. It will take up to 7 business days for it to take effect. In the meantime, drink some coffee, and go sit at the beach.

If this was helpful, or you noticed any changes in this process, please feel free to let me know by commenting below.

2 Responses

  1. I completed the entire process and asked to opt out, but it required that BOTH people on the tax return go through the entire process and BOTH opt out before the IRS will consider the request. Just wanted to add that.

  2. That’s an overly broad comment, hence good advice for some and bad advice for others. Millions of eligible households, like ours, know with certainty that they will owe more federal income tax than the amount of the child tax credit. This is especially When we take the monrthly advance on the child tax credit, we do not end up paying anything back or “owing more taxes.” Not even close.

    For such households, it’s better to take the child tax credit as soon as possible, through the monthly advances, and use it to pay off debt faster. The interest saved, especially on credit-card debt, is substantial.

    For the households I’m describing, if they are debt-free, they should take the monthly child tax credit advance and save or invest it.

    If one insists for some reason on saving only in US Dollars, put them in a fully-insured stable bank or credit union (“cooperativa”) in Ecuador, whose official national currency is the USD, and earn 8-10% interest. Another country that uses the USD as their official currency is Panama, and higher-interest CDs in USD are available there too.

    This interest rate typically rises as consumer price inflation rises, I.e. as the dollar continues to lose its value. Bad for borrowers, which we shouldn’t be, and good for lenders/savers.

    Higher interest rates than that are available if you buy certain foreign currencies and save them in a CD in those countries, such as Georgia, Armenia, Kazakhstan, and numerous others. (If you think these countries are “more dangerous” than the USa for your savings, you’d be wrong. US banks fail at a much higher rate thank banks in the countries that I just mentioned, and others in Eastern Europe, Caucasus, Central Asia, and East Asia.

    This diversification into other currencies and other countries’ economies is something that even middle-class middle-income people should try to do after they are debt-free. Keeping all your eggs in the US Dollar or in the USA is a recipe for poverty. Take that child tax credit advance as soon as possible and save/invest it, preferably outside this dying country.

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