The IRS has recently issued two information letters from the IRS – Letter 6419, 2021 advance Child Tax Credit (CTC); and Letter 6475, Your Third Economic Impact Payment (EIP) – that may continue critical information necessary to preparing your 2021 tax returns. It is important to retain these letters with your 2021 tax documents.
Letter 6419 began being issued in late December and will continue to be issued into January. It will show the total amount of advance CTC payments you received in 2021 and the number of qualifying children used to calculate the advance payments. We will need to compare the advance CTC payments received in 2021 with the amount of CTC that can be claimed on the 2021 return.
Letter 6475 will be issued to EIP recipients in late January. This letter will help us determine if you are entitled to and should claim the Recovery Rebate Credit on your 2021 tax return based on what was received in 2021.
Again, it is important that you retain both of these letters and send them to us along with your 2021 tax documents. Please feel free to contact us if you have any questions.