Are You Ready for the Next Child Tax Credit Payment?

Plus: Will COVID Booster Shots be Needed? You are receiving this limited-time email resource as a subscriber to Kiplinger's free e-newsletters. To unsubscribe at any time, simply click the link in the footer below. JULY 30, 2021 [View in browser]( HOW TO PROTECT AND GROW YOUR BUSINESS AND INVESTMENTS NOW Eligible families will receive another monthly child tax credit payment on Aug. 13, but if you don't want the payment, you need to opt out by 11:59 p.m. on Monday, Aug. 2 (Eastern Time). To opt out, go to the [IRS's Child Tax Credit Update Portal]( and follow the instructions for unenrolling. You'll need an existing IRS username or an [ID.me]( account to access the portal. The six monthly payments represent a 50% advance on the child tax credit you would otherwise claim on your 2021 tax return. Depending on your income, each payment can be as high as $300 for each child in your family who is five years old or younger, or $250 for each kid ages six to 17. So, for example, if you have three kids ages two, seven and 11, you can get up to $800 from the IRS each month (our [2021 Child Tax Credit Calculator]( will tell you how much you should get). The advance payments can be a lifesaver for struggling families, but other people don't need the money now and might be better off without them. Who might want to opt out of the monthly payments? People who want a larger tax refund or smaller tax bill next year when they file their 2021 tax return should consider it. Since the monthly payments are simply an advance on your 2021 child tax credit, all the money you receive as monthly payments will be subtracted from the total credit amount you're entitled to claim on your next tax return. Reducing the credit will either cut down your refund or increase the tax you owe. You also might want to opt out if your income is higher in 2021 or you're no longer allowed to claim your child as a dependent (e.g., due to a custody arrangement following a divorce). In most cases, the amount of each monthly payment is based on your 2020 or 2019 tax return (whichever one was filed most recently). However, the total amount of your child tax credit will be based on information found on your 2021 return. This disconnect means you could end up getting more than you should in monthly payments if your circumstances change in 2021. If there's an overpayment, [you may be required to pay it back]( or at least some of it, if you don't opt out. --------------------------------------------------------------- SPONSORED CONTENT FROM PIESTRO [Invest in Piestro for a Slice of This $54B Market]( Piestro's robotic pizzeria makes pies in about 3 minutes, at a fraction of the cost of traditional pizzerias. Learn how Piestro can more than double profit margins and invest today. [READ MORE]( --------------------------------------------------------------- A new study shows that the effectiveness of the Pfizer ([PFE]( vaccine in preventing COVID-19 infections slipped from 96% to 84% over six months. This strengthens Pfizer’s proposal to give a third shot of its vaccine. Pfizer has also said that a third shot would help prevent infections by the Delta variant specifically, which is more transmissible because it has a greater viral load. It’s possible that the study results showing a decline in prevention could have been affected by the rise of the Delta variant. The study is ongoing, and will measure whether the observed decline continues. The good news is that protection against the severe form of the disease was maintained at high levels. Of the 23,000 study participants who received the vaccine, only one person came down with severe symptoms over the six-month period. However, if this continues to be the case, then the federal government may be reluctant to pay for a new round of shots. Free download, [The Kiplinger Letter's Forecast](. No information required from you. SPONSORED CONTENT FROM VANGUARD PERSONAL ADVISOR [The World Has Changed. Has Your Investment Strategy?]( At Vanguard, we're invested in you. Which is precisely why we've created Vanguard Personal Advisor Services®, providing remote access to expert financial advisors, real-time goal tracking, and more confidence you'll meet your goals. There's never been a more perfect time to [get started](. [READ MORE]( RELATED LINKS [How to Win in a Red-Hot Housing Market]( [Older Adults Battle Long-Term Effects of COVID-19]( [How to Profit From ETFs]( [America's Worst CEO-to-Worker Pay Ratios]( [Build a Better Portfolio in 2021 -- Sign Up for Kiplinger's Free Investing E-Newsletters]( [Kiplinger] [Facebook]( [Twitter]( [LinkedIn]( Send this to a friend. [Click here.]( All content ©2021 The Kiplinger Washington Editors 1100 13th Street, NW, Suite 1000 Washington, D.C. 20005 Thank you for subscribing to Kiplinger's A Step Ahead, a free resource to help readers navigate the economic recovery from COVID-19. If you ever wish to stop receiving this service, please [click here to unsubscribe](.