The IRS will be issuing letters to those who received Advance Child Tax Credits, and to recipients of the third round of Economic Impact Payments. Hold on to this information with your other tax records, which will help to reduce errors and processing delays when preparing your 2021 tax returns in 2022.
Advance Child Tax Credit Letter
The Child Tax Credit (CTC) letter (Letter 6419, 2021 advance CTC) which the IRS started mailing late December, is being sent to assist taxpayers in calculating the proper CTC credit and repayment, if any. In the letter, taxpayers will see the total CTC payments they received in 2021, along with the number of qualifying children used to calculate the advance payments. This will be useful when comparing the advance CTC payments you received in 2021 to the CTC you can claim on your 2021 tax return.
Taxpayers who received advanced payments can also use the CTC Update Portal on IRS.gov to check their payments.
If you qualified, but did not take the advanced CTC payments, you may claim the full credit on your 2021 tax return filed this year.
Economic Impact Payment Letter
In late January, the IRS will be issuing Letter 6475, your Third Economic Payment (EIP), to EIP recipients. The letter is to assist taxpayers determine the Recovery Rebate Credit (RRC) they are eligible for on their 2021 tax returns when filing this year.
The third round of EIPs, which also included “plus-up“ payments to eligible recipients, were advanced payments of the 2021 RRC that were to be claimed on 2021 tax returns. While most eligible individuals already received the advanced payments, it is possible you may claim an RRC for the 2021 tax year.