Tax season is upon us and if you received the advance Child Tax Credit or the third Economic Stimulus Payment then you need to be on the lookout for a letter from the IRS!
If you received the advance Child Tax Credit, then you need to be on the lookout for Letter 6419. This letter is set to go out in late January. Letter 6419 is intended to help taxpayers reconcile their child tax credit payments. Families with eligible dependents started receiving these payments last July 15th. This was paid out every month on the 15th until the end of the year unless they opted out. The payments would have accounted for half of the Child Tax Credit for the 2021 tax return. The letter will have the total amount of payments received. We will need this total for your tax return.
What if you didn’t get your payment but believe you should have? Don’t fret, just let us know and if you are eligible then the full amount of the missing payments will be included on the 2021 tax return.
What if you got the credit but aren’t claiming the dependent this year? You may or may not have to pay it back. It will have to be reported on your tax return but talk to your tax preparer to see if you qualify for any exemption from the repayment provisions.
If you received the third Economic Stimulus Payment, then watch for Letter 6475. All recipients of these payments should receive a copy.
What if you didn’t get your payment but believe you should have? If this is the case, then make sure your preparer is aware of it. This missing payment(s) can be added to your 2021 tax return as a Rebate Credit. Some of the most common reasons for missing out on the third payment are: new baby, other new dependent, change in income, change in account information, and unfiled tax returns.
If you have any questions, contact our office
260-624-0490 | firstname.lastname@example.org