IRS to issue letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments

The IRS announced that it will issue letters to recipients of the Advance Child Tax Credit and to recipients of the third round of the Economic Impact Payments.  We at MBE CPAs, highly recommend saving these letters to submit when preparing your tax return in order to reduce errors and delays when processing.

Child Tax Credit letter

To help taxpayers reconcile and receive all of the Child Tax Credits (CTC) they are entitled to, the IRS will send Letter 6419, 2021 advance CTC, starting in late December 2021 and to January 2022. The letter will detail the total amount of advance payments the taxpayer received in 2021 along with the number of qualifying children used to calculate the advance payments.

People who received the advance CTC payments can also check online by using the CTC Update Portal on IRS.gov.

Eligible families who did not receive any advance Child Tax Credit payments can claim the full amount of the Child Tax Credit on their 2021 federal tax return, filed in 2022.

Economic Impact Payment letter

The IRS will be issuing Letter 6475  in late January, only to individuals who received the third round of Economic Impact Payments. This letter will help determine if you are entitled to and should claim the Recovery Rebate Credit on your 2021 tax returns.

As the 2022 tax filing season approaches, you are encouraged to keep these and any other letters from the IRS with your tax records. In addition, the IRS urges taxpayers to use electronic filing with direct deposit in order to avoid delays.

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MBE CPAs PPP2 Qualification resource sheet can be downloaded here.