The IRS is mailing out letters to 2021 payment recipients. Keep these letters if you want to avoid errors and delays with your 2021 tax return.
Now that you’ve welcomed in the New Year, it’s time to look ahead. The 2022 tax filing season is almost here.
If you received payments from the IRS in 2021, you can expect to receive a letter in your mailbox soon. The IRS is sending out these letters to assist taxpayers in filing their 2021 tax return.
Did you receive Child Tax Credit payments in 2021?
To help taxpayers reconcile and receive all of the Child Tax Credits to which they are entitled, the IRS will send Letter 6419, 2021 advance CTC, starting late December 2021 and continuing into January. The letter will include the total amount of advance Child Tax Credit payments taxpayers received in 2021 and the number of qualifying children used to calculate the advance payments. People should keep this and any other IRS letters about advance Child Tax Credit payments with their tax records.
Families who received advance payments will need to file a 2021 tax return and compare the advance Child Tax Credit payments they received in 2021 with the amount of the Child Tax Credit they can properly claim on their 2021 tax return.
The letter contains important information that can make preparing their tax returns easier. Alternatively, people who received the advance CTC payments can also check the amount of their payments by using the CTC Update Portal available on IRS.gov.
For more details on the advance CTC payments, see our previous post here.
Did you receive a 3rd stimulus payment in 2021?
The IRS will send Letter 6475, Your Third Economic Impact Payment, to EIP recipients in late January. This letter will help Economic Impact Payment recipients determine if they are entitled to and should claim the Recovery Rebate Credit on their tax year 2021 tax returns that they file in 2022.
Letter 6475 only applies to the *third round* of Economic Impact Payments that was issued starting in March 2021 and continued through December 2021. The third round of Economic Impact Payments, including the "plus-up" payments, were advance payments of the 2021 Recovery Rebate Credit that would be claimed on a 2021 tax return.
What are plus-up payments? Plus-up payments were additional payments the IRS sent to people who received an initial third Economic Impact Payment based on a 2019 tax return or other information; or to people who were eligible for a larger amount based on their 2020 tax return filing.
Like the advance CTC letter, the Economic Impact Payment letters include important information that can help reduce errors or delays when filing your tax return.
Keep your IRS letters! You will need them.
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