The IRS started issuing information letters to advance child tax credit recipients in December. Recipients of the third round of the Economic Impact Payments will begin receiving information letters at the end of January. Using the information in these letters when preparing a tax return can reduce errors and delays in processing.
If you received any of these letters please do not throw them away as these letters can help prepare your 2021 federal tax return.
Advance child tax credit payments letter can help you get remainder of 2021 credit
Families who received advance payments need to file a 2021 tax return and compare the advance payments they received in 2021 with the amount of the child tax credit they can properly claim on their 2021 tax return.
If you received the advance payments you can also check the amount of your payments by using the CTC Update Portal available on IRS.gov.
Eligible families who did not receive any advance child tax credit payments can claim the full amount of the child tax credit on their 2021 federal tax return. This includes families who don’t normally need to file a tax return.
Economic Impact Payment letter can help you claim the 2021 recovery rebate credit
Letter 6475 only applies to the third round of Economic Impact Payments, which were issued in March through December of 2021. The third round of Economic Impact Payments, including “plus-up” payments, were advance payments of the 2021 recovery rebate credit that would be claimed on a 2021 tax return. Plus-up payments were additional payments the IRS sent to people who received a third Economic Impact Payment based on a 2019 tax return or information received from the Social Security Administration, Railroad Retirement Board or Veterans Affairs. Plus-up payments were also sent to people who were eligible for a larger amount based on their 2020 tax return.
Most eligible people already received the payments. However, if you are missing stimulus payments you should review information on IRS.gov to determine your eligibility and whether you need to claim a recovery rebate credit for 2020 or 2021. This also includes people who don’t normally need to file a tax return.
The Economic Impact Payment letters include important information that can help you quickly and accurately file their tax return.
If you need more information about the 2021 advance child tax credit, Economic Impact Payments and other COVID-19-related tax relief please contact us.Posted on