By Aaron N. Klein, CPA
The IRS started sending Letter 6419, 2021 advance Child Tax Credit, in late December 2021 and continues to do so into January. The letter contains important information that can help ensure the return is accurate. People who received the advance CTC payments can also check the amount of the payments they received by using the CTC Update Portal available on IRS.gov.
Eligible taxpayers who received advanced Child Tax Credit payments should file a 2021 tax return to receive the second half of the credit. Eligible taxpayers who did not receive advanced Child Tax Credit payments can claim the full credit by filing a tax return. To ensure accurate calculation of the remaining credit on your 2021 tax return, this letter should be included with the information that you provide to your tax return preparer.
In addition, the IRS will begin issuing Letter 6475, Your Third Economic Impact Payment, to individuals who received a third payment in 2021 in late January. While most eligible people already received their stimulus payments, this letter will help individuals determine if they are eligible to claim the Recovery Rebate Credit for missing stimulus payments. If so, they must file a 2021 tax return to claim their remaining stimulus amount. As a reminder, people can also use IRS online account to view their Economic Impact Payment amounts.
Both letters include important information that can help file an accurate 2021 tax return and should be included with your tax information sent to Henry & Peters. If the return includes errors or is incomplete, it may require further review while the IRS corrects the error, which may slow the tax refund. Using this information when preparing a tax return electronically can reduce errors and avoid delays in processing. As such, it is recommended that you provide both letters to your preparer to insure an accurate return.
Henry & Peters encourages you to speak with your H&P representative if you have any questions regarding either of these letters.