According to www.irs.gov, the IRS began issuing information letters to advance recipients of Child Tax Credit (ACTC) 6419 in December and to recipients of the third round of Economic Impact Payments at the end of January. This will be the letter EIP 6475 for the stimulus received in March 2021.
“Advanced child tax credit payments were automatically deposited into your account if you did not opt out,” accountant Jana Walker said. “They did this based on 2020 numbers. If you had more income or changes in circumstances in 2021, when you file this tax season, you will actually determine the exact amount of credit you should have received. . With the difference that if you have received too much, you will have to repay.”
Sue West, senior director of the office of tax analysts at H&R Block, said: “If you are married you may have received the same letter 6419 with your spouse’s name and the same amount, the letters combined indicate the amount exact receipt and the number of children. “
She added: “Be sure to take letters 6419 from both spouses, letter 6475 and any other documents you may need to file accurately for 2021. If it contains errors and an addendum is needed, your taxes will have to be entered manually with copy paper, which will cause a big delay in your return.
Listed on its website, the IRS currently has 6 million unprocessed individual returns. Unprocessed individual returns include 2020 tax year returns with errors and returns that require special handling, such as those that require correction of the recovery rebate credit amount or validation of 2019 income used. to calculate Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC).
“Taxpayers should file their return electronically, choose direct deposit and if you have to, pay online or have it removed from your return,” Walker said. “You’ll feel more secure knowing it’s been accepted, the payment has been processed and you had a receipt. That way it won’t get misplaced with their current email situation.
“Another reason why people are nervous about it is that you have a divorce situation and you claim children every two years. They reversed the return for 2020, if the wrong parent received the child tax credit but shouldn’t have done so because they won’t be claiming those funds for 2021. The IRS position is that you have to calculate the amount and repay that amount if the other person was supposed to get it. It should have been taken out from the start, that way the right parent can claim it at tax time, instead of having it up front.”
West pointed out that “good news for people who would not have a W2 because they are not working but have children, can file taxes to receive the child tax credit. They don’t need to have income to receive this.
The IRS is present on social media platforms to post updates on tax changes, scam alerts, and services. They also have a smartphone app called “IRS2Go” that lets you get a status on your refund, make a payment, and find free tax preparation assistance. Additional resources are available at www.IRS.gov.