The IRS began sending informational letters in December to recipients of the Child Tax Credit. Recipients of the third round of Economic Impact Payments will begin receiving informational letters in late January. Using the information in these letters when preparing a tax return can reduce errors and processing delays.

People who receive these letters should keep them, not throw them away. These letters can help taxpayers or their tax professional prepare their 2021 federal tax return.

Child Tax Credit Advance Payment Letter May Help People Get Remaining Credit from 2021

To help taxpayers reconcile and receive all of the 2021 Child Tax Credit payments to which they are entitled, the IRS began sending Letter 6419, Advance 2021 CTPH, in late December 2021 and will continue in January. This letter includes the total amount of Child Tax Credit advance payments that taxpayers received in 2021 and the number of qualifying children used to calculate advance payments. Individuals should keep this and any other letters from the IRS about child tax credit advance payments with their tax files.

Families who received advance payments must file a 2021 tax return and compare the advance payments they received in 2021 to the amount of the Child Tax Credit they can properly claim on their 2021 tax return.

The letter contains important information that can facilitate the preparation of your tax returns. People who received advance payments can also verify the amount of their payments through the Child Tax Credit Update Portal available on IRS.gov

Eligible families who did not receive an advance payment of the Child Tax Credit can claim the full amount of the credit on their 2021 federal tax return. This includes families who do not normally need to file a tax return.

The Economic Impact Payment letter can help people claim the 2021 Refund Recovery Credit

The IRS will begin sending Letter 6475, Your Third Economic Impact Payment, to beneficiaries in late January. This letter will help Economic Impact Payment recipients determine if they are eligible and should claim the Refund Recovery Credit on their 2021 tax returns when they file in 2022.

Letter 6475 only applies to the third round of Economic Impact Payments, which were issued from March to December 2021. The third round of Economic Impact Payments, including additional payments, were advance payments of the Refund Recovery Credit of 2021 that would be claimed on a 2021 tax return. Additional payments were payments the IRS sent to individuals who received a third Economic Impact Payment based on a 2019 tax return or information received from the Insurance Administration Social, the Railroad Retirement Board or Veterans Affairs. Additional payments were also sent to people who were eligible for a higher amount based on their 2020 tax return.

Most eligible people have already received payments. However, individuals who do not receive stimulus payments should review the information on IRS.gov to determine their eligibility and whether they need to claim a Refund Recovery Credit for 2020 or 2021. This includes individuals who do not normally need to file a return. of taxes.

The Economic Impact Payment letters include important information that can help people file their taxes quickly and accurately.

More information about the prepayment of the Child Tax Credit 2021, the Economic impact payments y other COVID-19 related tax breaks they are available on IRS.gov.