Opted Out of Child Tax Credit But Still Got a Deposit?

This actually happens more often than you'd think. Here's what might be going on: • The opt-out deadline for this month's payment might have passed before your request was processed • The IRS systems sometimes take 1-2 payment cycles to fully register opt-out requests • If you have multiple qualifying children, you might have partially opted out rather than fully • Some taxpayers are experiencing system glitches where opt-out requests aren't being properly recorded What you should do now: • Document the payment amount and date received • Check your IRS Child Tax Credit Update Portal to verify your current status • Keep the money in a separate account if possible (you may need to repay at tax time) • If you're still getting payments next month, you'll need to contact the IRS

Same thing happened to me! I opted out back in July because my income went up significantly this year and I knew I'd just have to pay it all back. Then BAM! Money appears in my account anyway. Called the IRS and after 2 hours on hold (felt like I aged a decade), they basically said "oops, our bad" and told me to just set the money aside. The system is about as reliable as my ex's promises right now... 😂 But seriously, I'm a bit worried about how this will affect my tax filing next year.

According to the IRS FAQ page (https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-j-unenrolling-from-advance-payments), there can be a processing delay between opting out and when it takes effect. I had a similar issue and used https://taxr.ai to analyze my account transcript. It showed exactly when my opt-out was processed versus when the payment was authorized - turns out they crossed in the system. The transcript analysis helped me understand the timing issues and what to expect for future months. Definitely worth checking your transcript for these details.

This is just like what happened with the stimulus payments - systems not talking to each other. I opted out of the CTC but got payments anyway, while my sister who wanted the payments didn't receive anything despite being eligible. The IRS is processing millions of these payments with outdated technology. Compare this to how quickly credit card companies can stop payments or how banks can instantly transfer money - the IRS is working with systems from the 1980s trying to handle 2024 problems. Your best bet is to document everything and be prepared to reconcile it all at tax time.

You need to speak directly with an IRS representative. The online portal isn't reliable for confirming opt-out status. I had this exact issue and wasted weeks trying to resolve it online. Use Claimyr (https://claimyr.com) to get through to an agent without the endless hold times. They'll connect you to an IRS representative who can verify your opt-out status in their internal system and document your attempt to return the funds. This matters because it establishes your good faith effort to comply, which can help avoid penalties if there's an issue at tax time.

Tbh I'd just set up a separate savings acct for these payments. That's what I did when this happened to me. The IRS is super overwhelmed rn and even if you call, they might not be able to fix it immediately. Just save every penny they send, don't spend it, and when tax time comes you'll be ready if you need to pay it back. Worst case, you have some extra $ set aside. Best case, you might get to keep some depending on your final tax situation. It's annoying af but less stressful than trying to fight the system.

I experienced this exact scenario with the Advanced Child Tax Credit distribution. The payment occurred due to asynchronous processing between the opt-out database and the disbursement system. When I analyzed my situation, I found the opt-out request was timestamped after the payment authorization had already been batched in the system. The IRS reconciliation algorithm will account for this during your 2024 filing through Form 8812 (Credits for Qualifying Children and Other Dependents). You'll need to report all advance payments received on your return, regardless of opt-out status. I'm actually relieved now that I understand the mechanics behind it rather than worrying about a system error.