Think it’s junk mail? Think again! If you received Advance Child Tax Credit (CTC) payments or a third Economic Impact Payment (EIP or “stimulus check”) in 2021, the IRS will be sending you some very important letters. Here’s why you need to keep them to help you file your 2021 federal taxes.
Letter 6419: “2021 Advance CTC”
The IRS started issuing information letters to Advance CTC recipients in late December, 2021 and will continue into January. This letter, which includes the total amount paid in 2021 and the number of qualifying children used to calculate payments, can help you reconcile and receive all the 2021 Advance CTC payments you’re eligible for.
If you received Advance CTC payments, this letter will help you compare what you received in 2021 with the amount you can properly claim on your 2021 tax return.
Note: 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.
Letter 6475: “Your Third Economic Impact Payment”
Recipients of the third round of the Economic Impact Payments will begin receiving information letters at the end of January. This letter only applies to the third round of stimulus payments, which were issued March through December of 2021.
This third round of payments, including “plus-up” payments, were advance payments of the 2021 recovery rebate credit that would be claimed on a 2021 tax return.
If you received a third stimulus check, this letter will help you determine if you are entitled to and should claim the recovery rebate credit on your 2021 tax returns when you file in 2022.
Note: If you think you are missing stimulus payments, visit IRS.gov to determine your eligibility and whether you need to claim a recovery rebate credit for 2020 or 2021. This includes people who don’t normally need to file a tax return.
If you get these – or ANY – letters from the IRS, keep them! Do not throw them away. Bring them with you to our office when you come to file your 2021 taxes.
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For more information about the 2021 advance child tax credit, Economic Impact Payments, and other COVID-19-related tax relief, contact us today or visit IRS.gov.