If you received extra money from the IRS in 2021 in the form of the advance child tax credit payment or the third round of Economic Impact Payments (stimulus payments), you will soon receive a letter from the IRS, if you haven’t already. The letters began mailing out in late December 2021 and will continue through late January 2022, and they are important for taxpayers to hold onto.
If you received money for the advance child credit payment, be on the lookout for Letter 6419 from the IRS, called 2021 Advance CTC. This letter will detail the total payments you received and how many qualifying children were used to calculate the advance payments.
It’s important to give the letter to your tax preparer so they can determine if you are entitled to additional child tax credits, or if you need to pay back any of the advance child tax credits.
If you received your third round of Economic Impact Payments in 2021, you will receive Letter 6475 from the IRS, called Your Third Economic Impact Payment.
You also must give this letter to your tax preparer so they can accurately calculate the 2021 recovery rebate credit on your 2021 tax return.
Both of these communications from the IRS are very important in preparing an accurate 2021 tax return. When you get them in the mail, be sure to tuck them away with your other important tax papers for your 2021 returns.
>> Find more information about the 2021 advance child tax credit, Economic Impact Payments and other COVID-19-related tax relief on IRS.gov.
Contact Laura White at lwhite@cohenco.com or a member of your service team to discuss this topic further.
Cohen & Co is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.