Halloween is almost here, but some folks need to take a break from their spooky costume and party plans and double check their tax situations.
Monday, Nov. 1, is a tax deadline they can't afford to miss.
Opting out of early Child Tax Credit payments: Most families who've received the Advance Child Tax Credit (AdvCTC) payments are thrilled.
It's meant a much-needed $300 per child for kiddos younger than 6 or $250 per child for youngsters ages 6 to 17 since July, when the Internal Revenue Service started delivering them.
But the IRS is using prior tax data to determine who gets the credits early. And some folks have discovered they shouldn't be on the AdvCTC distribution list.
By getting the cash now, they likely will have to pay it back when they file their tax returns next year. The reasons why that might happen are discussed in my post Some Advance Child Tax Credit payments might have to be repaid.
If that's your tax situation, you need to stop the payments before the payback bill gets any bigger. The opt out option is done electronically via the IRS Child Tax Credit Update Portal.
As noted, Nov. 1 is the deadline to do that. But there's also a time deadline. You must make the online change by 11:59 p.m. Eastern Time, so adjust for your time zone if you live elsewhere.
I recommend, though, not waiting until that very last minute. If your clock is off or your computer burps or the IRS has connection issues or your internet provider goes down, then you're stuck getting an incorrect AdvCTC for another month.
Major disaster filing delays: Certain taxpayers in Michigan and Mississippi also need to note Nov. 1. It's their new tax deadline for many tasks.
They go the new and later due date because they endured major disasters earlier this year.
For Michigan residents, it's those who endured severe storms, flooding, and tornadoes back in late June. Most Mississippi filers got the upcoming new November due date because they were hit by remnants of Hurricane Ida.
A quick caveat for Mississippi residents in 19 counties. These areas recently were deemed eligible by the Federal Emergency Management Agency (FEMA) for additional disaster relief. The IRS then pushed these Magnolia State taxpayers' deadline to Jan. 3, 2022.
You can find more about the further extension of the original Nov. 1 extended tax deadline in my post titled Jan. 3, 2022, is new tax deadline for folks in 19 Mississippi counties hit by Ida.
Mississippians, however, still must meet the rapidly approaching tax deadline. As do those in parts of Michigan who dealt with an outraged Mother Nature. And, of course, all y'all who don't want to get AdvCTC payments for the last two months of the year.
So put your spooktacular Oct. 31 plans on hold for a bit and take care of the necessary tasks that must be met by Monday, Nov. 1.
If you miss the deadline, it could cost you. Plus, dealing with the IRS is much, much scarier than Halloween.
You also might find these items of interest:
- Considerations in making a major disaster tax claim
- 6 Advance Child Tax Credit questions still being asked … and the answers!
- IRS and other government resources can help you deal with a natural disaster