Yesterday the IRS released News Release 2021-255 where they shared that tax payers will be receiving certain information letters beginning in December and through January. You should keep an eye out for these letters if you received the related benefits as your accountant will need the information for your 2021 tax return.
Beginning in December 2021 the IRS will issue information letters to Advance Child Tax Credit recipients which will detail the payments received by taxpayers during 2021. This will be Letter 6419 and will provide information necessary to determine the amount of the remaining credits that families have available or whether they need to repay benefits if they received more than they were entitled. Taxpayers can also check the amount of these payments by using the CTC Update Portal.
In January 2022 the IRS will issue information letters on the third Economic Impact Payment that was issued during 2021. This will be Letter 6475 and will help determine whether taxpayers can receive any Recovery Rebate Credits on their 2021 tax return.
Make sure to keep an eye out if you are expecting to receive either of these letters and provide a copy to your accountant along with any other tax-related documentation for 2021.
In January 2022 the IRS will issue information letters on the third Economic Impact Payment that was issued during 2021. This will be Letter 6475 and will help determine whether taxpayers can receive any Recovery Rebate Credits on their 2021 tax return.
Make sure to keep an eye out if you are expecting to receive either of these letters and provide a copy to your accountant along with any other tax-related documentation for 2021.
If you have a new child-age dependent and didn't update the IRS you could receive a larger child tax credit for 2021.
