Want to claim the other half of the child tax credit? Keep an eye on this important letter

Do not throw away this important letter from the IRS. You’ll need it to claim the other half of your child tax credit early next year.
Over the past six months, millions of families with children have received a monthly financial boost from improved child tax credit payments. These payments were made as part of President Joe Biden’s US bailout in early 2021, and studies have shown that the money has had a big impact on the household finances of recipients. Month after month, these payments have helped reduce financial anxiety, lift children out of poverty, and allow families to make ends meet at a time when the nation is still struggling under the weight of the pandemic.
But while the financial boost has proven to benefit millions of families, the monthly payments are now officially over. The IRS issued the sixth and final batch of monthly payments to bank accounts and mailboxes on December 15. And, while it is possible that the tax credit will be extended until 2022, lawmakers disagree on this possibility. If lawmakers can’t come to a deal, families eligible for the tax credit will have to find other ways to stock up pantries and pay bills once the new year arrives.
That said, there will be even more child tax credit money pending in 2022. Almost all families eligible for monthly payments will be able to claim the other half of the tax credit on income tax returns. next year, which will put hundreds or even thousands of dollars more in their pockets. But, if you want to claim the other half of the tax credit money next April, you need to keep an eye on the mailbox now. The IRS will be sending out letters regarding the other half of the money soon, and you don’t want to miss this information. Here is what you need to know.
What you need to know about the upcoming IRS tax letter of credit
Millions of households plan to claim the second half of the child tax credit when filing their taxes next year. If you are among the millions of people who received the Child Tax Credit Advance Payments in 2021, you should keep an eye out for this letter – known as Letter 6419 – which will be sent to you by the IRS in the near future.
According to the IRS, Letter 6419 will describe a series of information about child tax credit payments that you have received in the past six months. This includes the total amount of advance payments you received for tax credits as well as the number of children the IRS included in the calculations for your family.
You’ll want to use the information included in this letter when filing your taxes in April. By doing this, you can help reduce errors on your tax return and reduce delays in processing your tax refund. Any errors included in your tax returns can delay your tax return, which means you may have a longer wait for the remainder of the tax credit owed to you.
The pandemic has already caused longer than normal processing times for Americans’ tax returns in 2020, and these types of IRS-related issues are expected to continue into 2021. By reducing potential errors in your tax documents, it can help you avoid even longer delays with your tax return next year – and can even speed up the issuance of the second half of your child tax credit money.
It is therefore very important to have these letters on hand if you want to ensure that your 2021 tax information is correct the first time around. According to the IRS, the letters will be issued in late December or early January 2022, so be sure to keep an eye on your mailbox into the New Year.
Keep an eye out for another dunning letter from the IRS that might also come to you
The Child Tax Credit newsletter isn’t the only mail to watch for in the coming weeks. The IRS will also send Letter 6475, which outlines the information for the third Economic Impact Payment.
This letter is sent to help people determine if they qualify for the recovery rebate credit. This credit can be claimed on your 2021 taxes if you were eligible but did not receive all or part of the $ 1,400 that was issued for the third set of stimulus checks in March 2021.
According to the IRS, most eligible people have already received their third stimulus payment and more. However, there are people who missed the third payment, and they should review the information in Letter 6475 to determine if they are eligible and should apply for a recovery refund credit for the 2020 or 2021 tax year. .
If you receive this letter from the IRS, you should make sure to keep it handy for use when filing your tax return. The letter will include instructions on how to claim the money back on your taxes, and you will need this information to make sure your tax returns are free of errors.
Otherwise, you may miss the money you or your family are entitled to or face long waits with treatment or delays.