Be on the lookout for two very important letters coming in January from the IRS. The Third Stimulus Payment (Letter 6475) and Advanced Child Tax Credit payments (Letter 6419). Preparation of your tax return could be delayed without these letters.
If you should but do not receive your letter(s), please download our worksheet (HERE) to track your monthly deposits for the Third Stimulus Payment and Advanced Child Tax Credit. You can then submit this worksheet (in place of the missing IRS letters) with your tax records and other documents for the 2021 Tax Season.
Third Stimulus Payment
The IRS started making the third stimulus payments (Economic Impact Payments) in March of 2021. For families with a 2021 adjusted gross income under $150,000, the third economic impact payment should be $1,400 for each taxpayer, and $1,400 for each qualifying dependent. Note that this is not a new stimulus program, but we are simply confirming you received the full amount you are eligible for when preparing your 2021 tax return.
You can find confirmation of the stimulus payment amount in a couple of ways:
- The IRS will mail a statement (Letter 6475) in January of 2022, which will report the total amount paid out for your third stimulus payment.
- The IRS mailed Notice 1444-C several weeks after remitting your payment. This notice reported the stimulus amount paid out to you.
- You can confirm the amount you received by reviewing bank records
- You can create an online account with the IRS here https://www.irs.gov/payments/your-online-account
Advanced Child Tax Credit Payments
Taxpayers with kids under 18 may have received monthly advances of the Child Tax Credit starting in July of 2021.
Only 50% of the expected child tax credit was paid out in advance, so we need to know the amounts you have already received to accurately calculate and reconcile the remaining credit to claim on the 2021 tax return.
You can find confirmation your Child Tax Credit Payment amounts in a couple of ways:
- The IRS will mail letter 6419 in January 2022. Each spouse has a separate letter.
- Bank records will list payments made between July and December
- Create an IRS online account (taxpayer and spouse need separate accounts) at https://www.irs.gov/credits-deductions/child-tax-credit-update-portal
Our experienced team at BakerStarrett is always here to answer all of your tax and accounting questions. Give our office a call 641-236-8083 to get started.