Parents are inundated with paperwork every day of the year. But this year, they absolutely want to follow up on one key letter: Letter 6419, sent to you by none other than the Internal Revenue Service.
don’t throw away this card. keep it with all your other important tax documents, including your w-2 forms.
I repeat, save this letter for your taxes.
The IRS said in early January that it began issuing these letters in December to those who received advance money from the child tax credit last year. but many parents had yet to see this letter in the mail as of January. 19. It is important to be attentive to this information.
The IRS will start tax season on January 1st. 24 when it will start accepting and processing tax returns for the first time.
(If you have any tax questions, feel free to fill out this form, also found below. usa today will be answering questions from top readers as we head into the 2022 tax season.)
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Some families may want to hold off a bit when it comes to filing a return until they spot the letter, which can help file them an accurate return and avoid delays. Others who don’t want to wait may need to review their own records and check their specific information at the IRS “Child Tax Credit Update Portal Site.”
Someone who doesn’t normally earn enough money to file a tax return will still need to keep this letter to claim the additional money that might be owed for the child tax credit when they file a 2021 federal income tax return.
“Even if you had $0 in income,” the irs notes, “you could have received advance payments of the child tax credit if you were eligible.”
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when did the advanced child tax credit arrive?
Families who received the Advance Child Tax Credit in 2021 (the money went from July to December) should reconcile what they received last year with their financial situation this year and file a Schedule 8812.
The monthly payments in advance, part of a temporary expanded program, were designed so that half of the total amount of the loan would be paid in monthly payments in advance during those six months of 2021.
The other half will be claimed by the tax filer when they file a 2021 income tax return. The IRS issued the first advance on July 15, 2021.
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what is the letter 6419 like?
While many have yet to see the letter, I did review a sample copy posted online at irs.gov. It was found on the IRS page called “Understanding Your 6419 Letter.”
letter 6419 is a black and white one page letter with the irs logo in the upper left corner. it is issued by the treasury department and the internal revenue service.
the letter has a large box at the top that reads: “2021 total child tax credit (advctc) advance payments.”
The letter says in bold: “Keep this important tax information. You need it to prepare your 2021 income tax return.”
the top of the correspondence does not indicate “letter 6419” in bold at the top. but it is marked as “letter 6419” in the lower right corner.
The term “letter 6419” also appears in box 1 at the top of the letter in the sentence referring to married couples filing jointly for tax year 2021.
Will I get one or two of these IRS letters?
great question. you can expect a letter. after all, a married couple filing jointly files a tax return, so it would make sense for a couple to receive a letter. but that is not the case at all.
The Internal Revenue Service will send two letters (and you’ll have to keep both) to married couples filing jointly, according to April Walker, senior manager of tax practice and ethics at the American Institute of CPAs.
Per the instructions in the example posted on irs.gov: “If you are filing a joint return for tax year 2021, you must add the amounts in Box 1 for both letters 6419 and enter the total amount on Schedule 8812.”
Keep both cards. don’t assume you got a duplicate card out of the blue and throw one away.
What key information is on IRS Letter 6419?
The letter itself explains two key components that were used to calculate your child tax credit advance payments in 2021.
Box 1 at the top of this letter will tell you the total dollar amount you received for advance payments of the child tax credit for six months in 2021. You must enter that amount on Schedule 8812 called “credits for qualifying children and other dependents” on line 14f or 15e, as applicable.
Box 2, which is right under Box 1, lists the number of qualifying children that were taken into account when the advance payments were determined for 2021. (Note: If you are dressing and feeding two little ones in the morning — including a baby born in 2021 — the box will likely list one child. Parents who had a baby born in 2021 did not receive advance payments last year but now can claim that child on their 2021 income tax returns to receive money.)
The IRS notes that “families who received advance payments should file a 2021 tax return and compare the advance payments they received in 2021 to the amount of the child tax credit they can correctly claim on their tax return. of 2021″.
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why does any of this matter?
If you lose the letter, and you don’t get an exact matching number on file with the IRS, you will likely face long delays in processing your tax return.
and yes, you will be waiting a long time to get your federal income tax refund.
Schedule 8812 specifically states on line 14f: “Caution: If the amount on this line does not match the aggregate amounts reported to you (and your spouse if filing jointly) in your letter(s) 6419, the processing of your return will be delayed.”
mark steber, director of tax information for jackson hewitt, cautioned taxpayers to make sure the full dollar amount received for advance payments is accurate when they file their tax returns.
“If this information is not correct on the 2021 tax return, taxpayers are at risk of receiving their refund late,” Steber warned.
Antonio Brown, a CPA in Flint, Michigan, said on Jan. 20 that he had not heard of any of his clients getting the letter yet.
It’s possible, he said, to file taxes without the letter, but you need to know exactly how much child tax credit you received in advance and how many dependents the money covered in 2021.
In general, Brown said, it’s important to refer to Letter 6419 before filing because, in some cases, a taxpayer might have received a different amount for a child under age 5 and another amount for dependents ages 6 to 6 years. 17. Some families may be confused about how much was received.
As part of the monthly payments, families received up to $300 for each child up to age 5 or up to $250 for each child ages 6-17.
“The letter breaks down how much was received and how many dependents it was for,” Brown said.
what is the irs child tax credit update portal?
If taxpayers have not received the letter, taxpayers can look up the amounts on the IRS website under the “Child Tax Credit Update Portal.” but you will need to create a user account with the irs.
brown noticed that his first filing clients did not have the letter to prepare the return, but they could go to the irs website to get this information, or check their bank statements to find it.
george smith, a CPA at andrews hooper pavlik in bloomfield hills, michigan, said he has a previous client who fortunately already received the letter and was able to file easily.
can i get more money from the child tax credit?
very possibly. You want to file Schedule 8812 to claim the remaining money for the child tax credit.
“if you are eligible for the child tax credit, but did not receive advance payments of the child tax credit, you can claim the full amount of the credit when you file your 2021 tax return during the 2022 filing season” , according to the irs .
and again, you want to keep letter 6419 to help you accurately report the total dollar amount you already received in advance in 2021.
The total child tax credit for 2021 is up to $3,600 per child age 5 and under and up to $3,000 for each qualifying child age 6-17.
If you have a 3-year-old, you likely received $300 a month from July through December for a total of up to $1,800. Now, when you file your 2021 federal income tax return, you may be owed another amount of money, up to $1,800.
However, the tax rules are complicated, and the actual amount you would receive now for your child tax credit is based on your 2021 income. If your income increased substantially in 2021, you may not qualify for more credit in cash.
those monthly payments in 2021 (via direct deposit to bank accounts or paper check by mail) were based on information from an income tax return you already filed or information you entered into the registration tool to not irs filers in 2020 or 2021.
a lot may have changed in 2021, of course. Maybe you earned more money last year and qualify for a lower amount of child tax credit than initially calculated.
irs suggests that you review each monthly payment, including any changes, at irs.gov/ctcportal and then click “manage advance payments.”
If you missed one or more advance child tax credit payments, you should contact the IRS at 800-908-4184 before filing your return.