The IRS has begun sending Letter 6419 about the 2021 Child Tax Credit (CTC) to millions of U.S. households. Many taxpayers will also start receiving IRS Letter 6475 about Economic Impact Payments (EIPs, also called stimulus payments). Taxpayers may need to refer to these letters to prepare their 2021 tax returns and claim their full credit amounts. If you are married, filling jointly, both parties will need their individual letters for filing.
If you received advance payments of the 2021 CTC, Letter 6419 will show the total amount of those payments. Other information in the letter will include how many qualifying children the IRS used as the basis for calculating your payment amounts. You can figure your total CTC for the year by filing a 2021 federal tax return. If your credit amount is higher than the total of your advance payments, you may claim the remaining credit as a tax refund or reduction in your tax.
You may also look up the total of your 2021 advance CTC payments by checking the CTC Update Portal. (Again, if married filing jointly, both parties will need to look up their individual information). If you choose to use the CTC Update Portal, you will be asked to create an IRS account and then use one of two authentication methods. The first is via a third-party service where you will be asked to take a photo of your ID and use facial recognition software. The second will allow you to verify your identity during a live, virtual interview with an agent. The EIPS3 can also be found in bank statements labeled United State Treasury EIP3.
If you did not receive advance payments but qualify for the CTC, you may claim your entire credit by completing a 2021 tax return. Even if you owe no tax and ordinarily do not have to file a return, filing for 2021 may enable you to receive the CTC as an IRS refund.
IRS Letter 6475 (“Your Economic Impact Payment”) refers to the third round of pandemic EIPs, known as EIP3, that the IRS began issuing in March 2021. If you received an EIP3 direct deposit, check or prepaid debit card, or a 2021 EIP “plus-up” payment, watch for Letter 6475 in late January or early February. If you qualified for EIP3 or a “plus-up” payment but did not receive it, or your payment amount was too low, you may claim the Recovery Rebate Credit on your 2021 tax return to get the remaining amount you are owed.
Store both of these IRS letters safely with your tax records, so you can refer to them when preparing your tax return. We can help you figure your total credit amounts, and electronically file your return to receive your refund as quickly as possible.
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