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You may get a new payment in July. Should you opt out, though?

Should you opt out of your new payment?

Blank stimulus checks on an idle press at the Philadelphia Regional Financial Center.
Blank stimulus checks on an idle press at the Philadelphia Regional Financial Center. Should you opt out of your new payment?
Matt Rourke, Associated Press

There’s a chance your family will start receiving child tax credit payments in July. But there may be a reason for you to opt out, experts recently told Yahoo Money.

What are the July payments?

Some families will start getting these payments beginning in July, as I wrote for the Deseret News.

  • American families who make $75,000 or less will qualify, according to The Washington Post. The number for each check will diminish for families who make more than that, as well as couples who make more than $150,000.

These payments are direct payments from the one-year child tax credit increase, which was approved in the American Rescue Plan — a $1.9 trillion coronavirus relief plan from the Biden administration that passed Congress in March 2021.

How to know if you should opt out

Experts told Yahoo Money that there are reasons to opt out of receiving these payments.

  • Specifically, people who owe money to the Internal Revenue Service or who saw their incomes jump in 2021 might want to skip out on the payments.
  • Anyone who might get divorced may want to reconsider as well.

Dennis Linden, a certified public accountant and director for the Northeast Ohio region of CBIZ MHM, told Yahoo Money that these payments would need to be repaid if your income changed so you should be cautious about accepting.

  • “Unlike the economic impact payments that were distributed last year, the child tax credit payments have to be paid back if too much was given,” Lindsen told Yahoo Money. “It can be a very unpleasant wakening in April of 2022 when the 2021 tax return is filed.”