2020 and 2021 were tax years filled with Coronavirus Aid and stimulus packages for needy families. These assistance packages, though necessary, will have an impact on individual tax returns here in 2022. Let’s take a look at the recent IRS Letter about the Advance Child Tax Credit and another IRS Letter that you may be receiving at the end of January.

IRS Letter 6419: 2021 Advance CTC

This letter began going out to taxpayers (who have received Advance Child Tax Credit payments) in December and may still be making its way to you through January. This letter does two things for you:

  1. It displays what credits you should have received, based on the number of children you have, and their ages.
  2. It allows you to cross-check what you actually received so that you can determine how much of the Child Tax Credit is still owed to you for the 2021 tax year.

What Do I Need to Do?

Keep this letter for your 2021 tax year records; do not misplace or dispose of it. Think of this letter as a tax form. The numbers in this letter will be used in your 2021 tax return; failure to use the correct numbers on your return will slow down your return’s processing and any potential refund you may be eligible for.

Relevant IRS.gov Links

For more information about this letter and its implications on your 2021 tax return, visit the following IRS.gov website: IRS sending information letters to recipients of advance child tax credit payments and third Economic Impact Payments | Internal Revenue Service (irs.gov)

To view the amounts that the IRS sent you for the Advance Child Tax Credit, check out this link: Child Tax Credit Update Portal | Internal Revenue Service (irs.gov).

For more general information about the Advance Child Tax Credit, use this link: Advance Child Tax Credit Payments in 2021 | Internal Revenue Service (irs.gov)

Incoming IRS Letter 6475: Your Third Economic Impact Payment

This letter will start going out at the end of January, according to the IRS. This letter will contain important information and critical numbers for your 2021 tax return. Wait until you receive both Letter 6475 and the letter above to start filing your return. On Letter 6475, the following information will be printed:

  1. List your name, address, and other pertinent personal information. Verify that this information is correct.
  2. List the amount, in dollars, that you received for Economic Impact Payments in 2021. Verify that you received this full amount by checking your bank account.

What Do I Need to Do?

Keep an eye out for and store this IRS letter somewhere safe. You will need the information on Letter 6475 to complete your 2021 tax return. Failure to use the proper numbers on your tax return will cause setbacks for both processing your return and issuing any refund that is owed to you.

Relevant IRS.gov Links

Information regarding this letter can also be found on the following IRS.gov page, at the bottom: IRS sending information letters to recipients of advance child tax credit payments and third Economic Impact Payments | Internal Revenue Service (irs.gov).

If you did not receive your third Economic Impact Payment (or the first two), you can go to the IRS website and submit a claim: Economic Impact Payments | Internal Revenue Service (irs.gov)

What to Do With IRS Letters 6419 and 6475

First and foremost, do not toss these letters in the trash. The numbers and information included in these letters will serve the following purposes:

  • They will help you streamline your tax return
  • They will help reduce errors and delays in the processing of your return

If you will be having a tax firm or tax agent helping you with your 2021 tax return, be sure to include these two letters (once you have both) in the tax documents that you provide to the service. If you have any questions about how your tax firm would like to handle this documentation, reach out to them directly.

Share This

Share this post with your friends!