TAXING TIMES Child tax credit parents are being sent letter from IRS – here’s what to do with yours when it comes
, Dec 27 2021
AMERICAN families who received Child Tax Credit payments are being sent a letter from the IRS that is crucial to hang on to.
Some 36million families should be expecting the letter, which will be important when it comes time to file taxes for 2021.
Families who received advance CTC payments should hang on to a letter from the IRS
Families who received advance CTC payments should hang on to a letter from the IRSCredit:
The note is called Letter 6419: 2021 advance Child Tax Credit (CTC).
It will include the amount of cash each family received due to the expanded Child Tax Credit and will also verify the number of children in the family who qualified for payments.
On December 22, the IRS announced that it would be sending the letter to Child Tax Credit recipients this month.
Separate letters will also be going out to people who received the third round of stimulus checks earlier this year at the end of January.
The IRS hopes that by sending out the official forms, errors and delays when it comes to processing tax returns can be avoided.
Families who were eligible for the expanded Child Tax Credit but did not receive any monthly payments in 2021 will still be able to claim the full amount on their 2021 tax returns.Parents who didn’t receive advance Child Tax Credit payments could receive up to $3,600 per child under the age of six when tax returns are filed next year.
For children ages six through 17, that amount is up to $3,000.
If you have a newborn baby in December, you will also be able to claim up to $3,600.
The IRS said that parents who give birth on December 31 can claim the tax credit for newborns providing the eligibility test is met.
The monthly Child Tax Credit payments of up to $300 for children under six and up to $250 for children ages six to 17 began going out in July and were sent every month through December.
To be able to claim the full amount of stimulus money, an individual taxpayer must have an adjusted gross income (AGI) under $75,000.
The AGI must be under $150,000 for couples who are married and file taxes jointly.