Eligible Americans who received the Child Tax Credit which the government began paying in July 2021 have been sent letters by the Internal Revenue Service.
According to CPA Practice Advisor, the letter is meant to be kept in order to help with the filing of 2021 taxes in 2022.
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.
The IRS will begin issuing Letter 6475, Your Third Economic Impact Payment, to EIP recipients in late January.
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.
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 SSA, RRB, or VA; or to people who may be eligible for a larger amount based on their 2020 tax return.