I was having a discussion with a bunch of my tax professional compatriots and we were wondering how this year would go.
After all, this past tax season so many of our clients screwed up the Economic Impact Payments that they got (and in so doing either got bigger refund than they expected- or were billed for too large an impact payment received). And, for the second year in a row, the 15th of April had no bearing on the end of tax season.
And, this year, with the Advanced Child Tax Credit- where some folks might have made too much money to get the full credit (or the credit at all)- or were denied the credit for a child (because their ex-spouse declared them last year and they get to declare them this year), we could foresee a slew of problems.
The good news? The IRS announced last week that they will be mailing out letters to everyone who got the Advanced Child Tax Credit and/or the third round of Economic Impact Payments. (Everyone will have received their letters by the end of this month.) Which means- DO NOT THROW OUT THOSE LETTERS. You will need that information to complete your taxes this year (or provide it to us so we can prepare your forms).
The other good news in that notice? No changes to the filing date this year. OK, because of holidays, it’s the 18th of April and not the 15th– but at least it’s not extending and extending, as it has for the past two years.
If you received the Advanced Child Tax Credit, you will receive Letter 6419. Those who received the third Economic Impact Payment will receive Letter 6475. (Yes, it is possible you will receive both letters.)
Remember- save those documents so you can file your taxes correctly- and easily.
Thanks so much for the info!!! I’ll be sure to keep an eye out on that Advanced Child Tax Credit. Not sure if I will get it, but we shall see.
Well, you won’t get it in 2022, unless some folks in Congress make a deal. It was part of the Build Back Better Bill that is now 6 feet under. I presume this provision, the young kids school, and the daycare provisions will sneak across the threshhold.
But, if you were due the funds for 2021, go get ’em!
Thank you for the Child Credit info. I’m not at all delighted about how this year’s tax season will go, but this is definitely helpful.
I hope they vote to resume this necessary and vital benefit to preclude poverty in the US- and a benefit for those who need a little more help to provide for their families, Lora!
You share the best information Roy! I’m passing on this post to a few I know that have received the child tax credit.
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Honored by your comment, Martha! It’s what I strive to do.
Thanks for the heads up! I will be looking out for these!
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It certainly will make filing a lot easier!
I’m a little confused. I know some things have carried over until the following year if for some reason people didn’t get the economic stimulus or child credit like they should have. But if I didn’t get a letter last year for the previous year’s economic stimulus check, I wouldn’t get one this year, would I?
There was less forthrightness last year about the letters (if any). Which is why the IRS has decided to provided everyone the information this year- so that the taxes are properly prepared.
If you DIDN’T get the stimulus- you don’t get a letter. If you GOT the stimulus, a letter is on the way.
A valuable read. I am sharing this with friends who will be grateful for this information.
That is exactly why I publish my blog. Thanks for the visit, the comment, and the shares, Lynn.