IRS Stimulus Check/Child Tax Credit Letters Coming Soon: A letter from the Internal Revenue Service (IRS) can send a cold shiver down the spine of even the most diligent tax filer, and likely soon many Americans will be receiving such a letter. That doesn’t mean they’re in trouble, rather the agency is sending out information about the third round of stimulus checks and child tax credits that were disbursed last year.
“The IRS started issuing information letters to advance child tax credit recipients in December. Recipients of the third round of the Economic Impact Payments will begin receiving information letters at the end of January. Using the information in these letters when preparing a tax return can reduce errors and delays in processing,” the IRS said via a press release.
“People receiving these letters should keep them,” the release added. “Do not throw them away. These letters can help taxpayers, or their tax professional prepare their 2021 federal tax return.”
The “Letter 6419, 2021 advance CTC,” includes the total amount of advance child tax credit payments taxpayers received in 2021 and the number of qualifying children used to calculate the advance payments. The IRS has said that filers should keep that letter and any other IRS letters about advance child tax credit payments with their tax records.
Unlike other forms of income, a stimulus check is not taxable, but still need to be reported on 2021 tax returns, which will need to be filed this spring.
The 2021 stimulus checks were disbursed to eligible recipients starting in March of last year, CNBC.com reported. Those checks were worth up to $1,400 per qualifying taxpayer and each of their dependents.
Second Stimulus Check Letter
A second letter from the IRS will also be provided to help people claim the 2021 recovery rebate credit.
“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 entitled to and should claim the recovery rebate credit on their 2021 tax returns when they file in 2022,” the agency noted.
However, Letter 6475 only applies to the third round of Economic Impact Payments, which were issued in March through December of 2021. The third round of Economic Impact Payments, including “plus-up” payments, were advance payments of the 2021 recovery rebate credit that would be claimed on a 2021 tax return.
Those plus-up payments were additional payments the IRS sent to people who received a third Economic Impact Payment based on a filer’s 2019 tax return or information received from the Social Security Administration, Railroad Retirement Board or Veterans Affairs. Plus-up payments were also sent to people who were eligible for a larger amount based on their 2020 tax return.
Most eligible Americans have already received their payments. However, the IRS said that people who are missing stimulus payments should review information on IRS.gov to determine their eligibility and whether they need to claim a recovery rebate credit for 2020 or 2021. This includes people who don’t normally need to file a tax return.
Peter Suciu is a Michigan-based writer who has contributed to more than four dozen magazines, newspapers and websites. He regularly writes about military small arms, and is the author of several books on military headgear including A Gallery of Military Headdress, which is available on Amazon.com. Peter is also a Contributing Writer for Forbes.