(PatriotWise.com)- In January, the IRS began sending out letters to people who received the third round of Economic Impact Payments which recipients are to use when preparing their 2021 tax returns.
Letter 6419 is to help taxpayers reconcile and receive all the 2021 child tax credits they are entitled to. The letter includes the total amount in advanced child tax credit payments received in 2021 as well as the number of qualifying children used to calculate the payments.
The IRS has urged those who received Letter 6419 and any other IRS letters about advance child tax credit payments to keep them with their other 2021 tax records for when they prepare their tax returns.
If you received advance child tax credit payments, you will need to file a 2021 tax return even if you normally don’t so you can compare the advanced payments received in 2021 with the amount of the child tax credit you can claim on your 2021 return.
Eligible families who didn’t receive any advance child tax credit payments are able to claim the full amount on their 2021 federal tax return.
Letter 6419 will also help Economic Impact Payment recipients determine if they are entitled to the recovery rebate credit on their 2021 tax returns when they file in 2022.
However, Letter 6475 only applies to the third round of Economic Impact Payments issued from March through December of 2021.
According to the IRS, most people eligible have already received the advanced payments. However, people who may be missing payments should review the information at the IRS website to determine if they are eligible and whether they need to claim a recovery rebate credit for either 2020 or 2021.
You can get more information about the 2021 advance child tax credit HERE.
For information on Economic Impact Payments, go HERE.
For other COVID-related tax relief information, go HERE.