In order to be prepared for this tax filing season, be on the lookout for letters from the IRS if you 1) received the third stimulus payment and/or 2) received advanced Child Tax Credit payments in 2021.
The IRS will begin sending out Letter 6475 in late January. This letter applies to those who received the third stimulus payment, also known as an Economic Impact Payment (EIP). The third EIP, distributed in March of 2021, was $1,400 and served as an advanced payment of the “Recovery Rebate Credit” on your 2021 tax return. Therefore, your tax preparer must know if you received the third stimulus check to correctly prepare your 2021 tax return.
Likewise, for those who have received advanced Child Tax Credit payments, be sure to check your mail for a Letter 6419 from the IRS. The IRS began sending these letters in late December of 2021 and will continue sending them through the end of January. The letter will specify the total amount of advance Child Tax Credit payments you received in 2021 and the number of qualifying children used to calculate the credit. This letter is a vital component of your 2021 tax return if you received an advanced Child Tax Credit payment.
If you do not receive Letter 6419 from the IRS containing information regarding your advanced CTC payments you can also check the amount of your payments by using the CTC Update Portal available on IRS.gov.
When you receive these letters be sure to keep them and include them with your tax documents.