Americans will be soon getting some letters in the mail from the IRS and not throwing them out. For lots of you you will be receiving not one but two important IRS letters in early 2022 that you will need to complete your 2021 taxes.
The first letter is for anyone who received the 1,400 stimulus check back in March or April from President Biden’s American Rescue Package.
The second letter is for those of you who were issued the monthly Child Tax Credit payment in 2021.
Stimulus Letter
In the letter you will see the word EIP3 the stimulus payment from March 2021 is technically called EIP3. so that is what they will be referring to. If you got EIP3 you will be receiving a letter called Letter 6475 from the IRS. That letter will tell you how much money the federal government says you received in federal stimulus payments in 2021.
If everything is correct since these payments are considered non taxable income just keep the document with all the other tax documents.
If you qualify and did not receive EIP3 or a portion you were supposed to get or a payment for you or your dependents. If you didn’t get it maybe they didn’t have the correct income or didn’t count a new baby.
Then just like last year you file a recovery rebate credit for EIP3 on your 2021 tax return and claim those missing stimulus payments.
Child Tax Credit Letter
If you received the monthly Child Tax Credit of either 300 dollars or 250 dollars. The IRS says In January 2022 you will be receiving Letter 6419.
That letter will tell you how much the federal government has issued you in monthly child tax credit payments between July and December. You will take that number and subtract it from the amount of child tax credit you can properly claim based on your child’s age and your income level.
After doing that math whatever number you come up with is the balance you can claim on your 2021 taxes when you file in 2022.
Wednesday millions of Americans received their final Child Tax Credit unless the Senate passes the Build Back Better act.
You can start filing your taxes January 15th 2022.
