The Internal Revenue Service today encouraged taxpayers to take important actions this month to help them file their federal tax returns in 2022, including special steps related to Economic Impact Payments and Advance Child Tax Credit payments.
Below are some key items you should know before you file next year.
Check on advance Child Tax Credit payments
Families who received advance payments will need to compare the Advance Child Tax Credit payments that they received in 2021 with the amount of the Child Tax Credit that they can properly claim on their 2021 tax return.
Taxpayers who received less than the amount for which they’re eligible will claim a credit for the remaining amount of Child Tax Credit on their 2021 tax return. Taxpayers who received more than the amount for which they’re eligible may need to repay some or all of the excess payment when they file.
In January 2022, the IRS will send Letter 6419 with the total amount of advance Child Tax Credit payments taxpayers received in 2021. You should keep this and any other IRS letters about advance Child Tax Credit payments with your tax records.
Eligible families who did not get monthly advance payments in 2021 can still get a lump-sum payment by claiming the Child Tax Credit when they file a 2021 federal income tax return next year. This includes families who don’t normally need to file a return.
Economic Impact Payments and claiming the Recovery Rebate Credit
Individuals who didn’t qualify for the third Economic Impact Payment or did not receive the full amount may be eligible for the Recovery Rebate Credit based on their 2021 tax information. You’ll need to file a 2021 tax return, even if you don’t usually file, to claim the credit.
You will also need the amount of your third Economic Impact Payment and any Plus-Up Payments received to calculate your correct 2021 Recovery Rebate Credit amount when you file you tax return. Ensuring you use the correct payment amounts will help you avoid a processing delay that may slow your refund.
In early 2022, the IRS will send Letter 6475 that contains the total amount of the third Economic Impact Payment and any Plus-Up Payments received. You should keep this and any other IRS letters about their stimulus payments with other tax records. You can also log in to your IRS.gov Online Account to securely access your Economic Impact Payment amounts.
Links to online tools, publications and other helpful resources are available at IRS.gov/getready.
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