Recipients of advanced Child Tax Credits and/or third-round Economic Impact Payments should be watching for a valuable piece of mail from the IRS.
For those who received Child Tax Credits in 2021, IRS Letter 6419 began going out in late December to explain how much each received, how that amount was determined, and how much can be claimed on 2021 federal tax returns. That information will be needed for Schedule 8812 and Form 1040.
By the end of January, the roughly 36 million people who received the CTC should have received the letter. Taxpayers who don’t want to wait or don’t receive a letter can find the same information online through the IRS CTC portal.
Individuals who qualified but chose to not receive the CTC in 2021 will not receive the IRS letter, but they can still claim the full amount of their CTC on their 2021 return.
As a reminder, the IRS emphasized that it contacts taxpayers only through the mail. Phone calls and emails that claim to be from the IRS are scams.
EIP recipients updated
Letters 6475 from the IRS will be sent in late January to recipients who received an EIP in 2021. The letter will help recipients determine whether they’re entitled to and should claim the Recovery Rebate Credit on their 2021 returns.
The letter applies only to the third round of EIPs. Like the letter to CTC recipients, the EIP letter will include important information that can help with 2021 federal tax filings.
Stimulus and advance credit payment programs can be confusing to unravel when it comes time to file federal taxes. Reach out to me or any of our tax team advisors for help getting through the maze.
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