The American Rescue Plan expanded the child tax credit for 2021, increasing the amount eligible families can receive from $2,000 to $3,600 for children under the age of six and $3,000 for children aged six to seventeen. Additionally, the expanded credit provided parents with monthly advance payments of up to $300 for each child born between July and December 2021.
While the monthly payments lifted millions of children out of poverty temporarily, they accounted for less than half of the total child tax credit last year. Families eligible for the child tax credit will now receive the remainder of their refunds in 2021.
However, in order to claim the remainder of their child tax credit funds, parents will need IRS Letter 6419, 2021 advance CTC. The IRS sent these letters to families who received any advance monthly payments for the child tax credit last year in December and January. The IRS advises taxpayers to retain the notice because the information contained in it must be included in their parents’ 2021 tax returns.
Continue reading to learn more about Letter 6419 and why you’ll need it to file your taxes for 2021. For additional information, see our comprehensive guide to the upcoming child tax credit payment. Additionally, learn whether you may be required to repay child tax credit funds and what to do if a payment is late.
What information is contained in IRS Letter 6419?
The IRS letter, referred to as Letter 6419, contains critical information that can assist you in preparing your taxes. The notice will detail the amount of child tax credit money you received in 2021 and the number of qualifying dependents included in the calculation.
You’ll want to double-check the information to ensure it remains accurate. For instance, if you had a child since you last filed your taxes, the IRS would not have counted that dependent when calculating your eligibility for benefits. As a result, you’ll need to ensure that your information is current when filing your tax return.
What if you did not receive the IRS letter?
If you have not yet received a letter, keep an eye on your mailbox as the IRS continues to work on sending them out. If, however, you have not received a notice by the time you are ready to file your taxes, there may be a problem. For example, you may have relocated and the agency does not yet have your current mailing address.
If you do not receive a letter by the deadline for filing your return, you must either use the online child tax credit portals to verify your information or contact the IRS directly via mail or telephone at 800-829-1040. If you contact the IRS by mail, you should anticipate a response time of at least 30 days.
What if you misplaced or discarded the IRS letter?
The IRS strongly advises taxpayers not to discard Letter 6419, as it is required to confirm the amount of advance child tax credit payments, as well as the number and ages of your children. If you accidentally disposed of it or misplaced it, however, do not panic. Your child tax credit information will be accessible through the IRS’s child tax credit portals.
While creating an account on the IRS website takes some time and patience, once you’re in, you’ll have access to all of the necessary information for the child tax credit, as well as other useful IRS information for tax preparation.
The amount of child tax credit money you receive is determined by a variety of factors.
What if the information contained in the letter is incorrect?
Regrettably, the IRS has warned that some of the information contained in the letters may be incorrect, which will undoubtedly complicate the process of completing your tax return.
According to the IRS, the affected families are few in number and are limited to taxpayers who relocated or changed bank accounts in December. If you believe the information in your IRS letter is incorrect, you should first check your bank account for IRS deposits. To locate specific monthly child tax credit payments, search for the description IRS TREAS 310 CHILDCTC.
If the monthly payment information on your banking account differs from the information on IRS Letter 6419, the IRS recommends logging into an online IRS account. The agency emphasised that accurate information about child tax credit payments is available on the IRS website. If the website indicates that you received money that you did not, you may need to contact the IRS to request a payment trace.
How much money will you receive for child tax credits when you receive your tax refund?
The amount of child tax credit money you receive as part of your tax refund is determined by a variety of factors. For example, if you opted out of receiving monthly payments last year, the amount you receive will be greater than the amount received by someone who received each check. Children 5 and younger received monthly checks of up to $300, while children 6 and older received checks of up to $250.
Therefore, if you were eligible for the maximum amount and chose not to receive payments, you could receive up to $3,600 per child as a tax refund. However, if you receive all six payments in 2021, you may be eligible to receive up to $1,800 per child, depending on their ages.
If you’re still awaiting payment from the IRS as a result of an IRS error, it should arrive with your tax refund.
For additional information, here is how to contact the IRS with questions about the child tax credit. Additionally, if you paid for child care last year, you may be eligible for up to $16,000 in tax credits.