STATEN ISLAND, NY – The Internal Revenue Service (IRS) sends out important newsletters regarding the 2021 stimulus payments and the child tax credit.
Recipients can expect to receive the letters on stimulus payments, also known as economic impact payments, by the end of January. Letters for the Child Tax Credit were issued from December and will continue until the first half of 2022.
The IRS urges people to keep these letters to help them prepare their 2021 federal tax returns, which will help reduce errors and processing delays.
The IRS has distributed more than 1.1 million payments worth more than $ 2 billion in the eighth economic impact payment batch of the US bailout, which aims to help Americans amid the pandemic of coronavirus (COVID-19). Eligible Americans received three stimulus checks – $ 1,200 in March 2020 at the start of the pandemic and $ 600 in December 2020. The third check included up to $ 1,400 for singles and dependents and $ 2,800 for married couples.
The IRS will begin issuing Letter 6475 on the Third Economic Impact Payment in late January. This letter will help recovery check recipients determine if they are eligible and should claim the recovery refund credit on their tax year 2021 tax returns.
Letter 6475 only applies to the third round of Economic Impact Payments, up to $ 1,400, which were issued from March 2021 and continued until December 2021.
The third set of payments, including “mark-up” payments, were 2021 recovery refund credit advance payments that would be claimed on a 2021 tax return. The mark-up payments were additional payments that the IRS sent to eligible individuals. to additional funds depending on the evolution of income from 2019 to 2020.
The IRS will begin issuing Letter 6475, Your Third Economic Impact Payment, to EIP recipients in late January. This letter will help Economic Impact Payment recipients determine if they are eligible and should claim the recovery refund credit on their tax returns for the 2021 tax year that they file in 2022.
According to the IRS, most eligible people have already received the payments. However, people who are missing stimulus payments should review the information to determine their eligibility and whether to claim a recovery refund credit for the 2020 or 2021 tax year.
CHILD IMPT LETTER OF CREDIT
To help taxpayers reconcile and receive all of the child tax credits they are entitled to, the IRS began sending letter 6419 at the end of December and will continue to send the letter in January.
The letter will include the total amount of child tax credit advance payments that taxpayers received in 2021 and the number of eligible children used to calculate the payments. The IRS said people should keep this letter and any other letters from the IRS regarding child tax credit advance payments with their tax records.
The credit – valued at between $ 250 and $ 300 per month per child for qualifying families – was enacted by President Joe Biden as part of the US bailout.
American families receive their expanded child tax credit in two phases.
Half came from advanced monthly payments, which started in July and ended in December of last year. The other half will be claimed on residents’ 2021 tax returns. Families who have opted out of monthly payments can receive the credit in a single payment when filing their 2021 tax return.
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