If you received an EIP or ACTC payments, make sure you have your Advance Child Tax Credit letter (Letter 6419) and/or Economic Impact Payment letter (Letter 6475) on hand when preparing your returns. The IRS began mailing information letters to ACTC and EIP recipients in January.
- Letter 6419 (2021 Total Advance Child Tax Credit Payments) tells taxpayers who received ACTC payments how much they received. Since ACTC payments represented about one-half of the total credit, taxpayers who received ACTC payments need to file a return to collect the rest of the credit.
- If you can’t find your Letter 6419, you can use the IRS’s CTC Update Portal to calculate how much in ACTC payments you’ve received.
- Letter 6475 (Your Third Economic Impact Payment) tells taxpayers who received an EIP in 2021 the amount of that payment. Taxpayers need to know this amount to determine if they can claim an additional amount on their tax return (The Recovery Rebate Credit or RRC). Taxpayers who don’t receive/can’t find their Letter 6475, can find the information on their IRS online account.
- Taxpayers who received an EIP or ACTC payments must include that information on their return. Failure to include this information, according to the IRS, means the return is incomplete and will require additional processing which may delay any refund owed to the taxpayer.
- Use IRS.gov and the resources it offers to get answers before you call the IRS. IRS.gov offers many automated services, including checking your refund status and paying taxes. Working with the IRS over the phone can be a lengthy process, so use online resources wherever possible.
If you have any questions, reach out to your tax professional at Borland Benefield.