Tax Tip: Save Important Child Tax Credit and Stimulus Letters
By: Stacey Nickens
In 2021, many eligible taxpayers received advanced payments of their child tax credit as well as stimulus payments. The IRS has accordingly begun sending out letters to those taxpayers in order to help them document the size of their payments. You should save these letters to assist with the completion of your 2021 tax return.
Child Tax Credit Letters
During December 2021 and January 2022, the IRS will send out Letter 6419, which details the amount of child tax credit payments that the taxpayer received in 2021. The letter also explains how many children were included in the calculation of these tax credit payments.
On their 2021 return, families who received advanced child tax credit payments will compare the amount that they actually received against the amount they were eligible to receive. If taxpayers are eligible for additional credits, they can claim those credits on their 2021 return. Additionally, families who did not receive advanced payments can claim their full credit on their 2021 return.
Beyond saving this letter, taxpayers can also visit the CTC Update Portal to check the size of their payments.
Stimulus Payment Letters
In late January, the IRS will begin sending out Letter 6475, which will detail the size of taxpayers’ third economic impact payments. This letter can assist taxpayers in determining if they have received the full recovery rebate credit to which they are entitled. Similar to with the advanced child tax credit, taxpayers will use their 2021 returns to compare the amount they actually received to the amount they were eligible to receive.
If taxpayers are eligible for additional credits, they can claim those credits on their 2021 return.
Remember to save these two important letters in order to use the information for your 2021 return.
