Child Tax Credit Letter 6419-2021

Watch for advance Child Tax Credit letter

To help taxpayers reconcile and receive all of the Child Tax Credits to which they are entitled, the IRS will send Letter 6419, 2021 advance CTC, starting late December 2021 and continuing into January. The letter will include the total amount of advance Child Tax Credit payments taxpayers received in 2021 and the number of qualifying children used to calculate the advance payments. People should keep this and any other IRS letters about advance Child Tax Credit payments with their tax records.

Families who received advance payments will need to file a 2021 tax return and compare the advance Child Tax Credit payments they received in 2021 with the amount of the Child Tax Credit they can properly claim on their 2021 tax return.

The letter contains important information that can make preparing their tax returns easier. People who received the advance CTC payments can also check the amount of their payments by using the CTC Update Portal available on IRS.gov.

Eligible families who did not receive any advance Child Tax Credit payments can claim the full amount of the Child Tax Credit on their 2021 federal tax return, filed in 2022. This includes families who don’t normally need to file a tax return.

Economic Impact Payment letter can help with the Recovery Rebate Credit

The IRS will begin issuing Letter 6475, Your Third Economic Impact Payment, to EIP recipients in late January. This letter will help Economic Impact Payment recipients determine if they are entitled to and should claim the Recovery Rebate Credit on their tax year 2021 tax returns that they file in 2022.

Letter 6475 only applies to the third round of Economic Impact Payments that was issued starting in March 2021 and continued through December 2021. The third round of Economic Impact Payments, including the “plus-up” payments, were advance payments of the 2021 Recovery Rebate Credit that would be claimed on a 2021 tax return. Plus-up payments were additional payments the IRS sent to people who received a third Economic Impact Payment based on a 2019 tax return or information received from SSA, RRB or VA; or to people who may be eligible for a larger amount based on their 2020 tax return.

Most eligible people already received the payments. However, people who are missing stimulus payments should review the information to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2020 or 2021.

Like the advance CTC letter, the Economic Impact Payment letters include important information that can help people quickly and accurately file their tax return.

More information about the advance Child Tax CreditEconomic Impact Payments and other COVID-19-related tax relief may be found at IRS.gov.

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Advance Child Tax Credit Payments in 2021

On 2020 Federal Income Tax return, if you claimed the CHILD TAX CREDIT. For tax year 2021, the Child Tax Credit has increased.  The maximum amount for children 6-17 years is $3000 and for children 0-5 years the maximum amount is $3600.  

Beginning today, July 15, 2021, the IRS will pay half the total credit amount in advance monthly payments.  The amount you will be paid will be half of your estimated 2021 CTC divided by 6 monthly payments.  (For example if your estimated 2021 CTC is $3000, then you will get $250 per month through Dec 2021.)  You will claim the other half when you file your 2021 income tax return. These changes apply to tax year 2021 only.

When you come in to file your taxes next year, we will reconcile your Advanced Child Tax Credit payments you received.  If your CTC is more than the payments you have already received, you can claim the remaining balance on your 2021 Federal Income Tax return.  If your CTC is less than the payments you have already received, you may need to repay the IRS the difference. 

In January 2022, the IRS will send you Letter 6419 to provide the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. Please keep this letter regarding your advance Child Tax Credit payments with your tax records as we will need it to file your 2021 Federal Income Tax return.

As a reminder, the amount of money you receive in Advanced CTC payments this year WILL REDUCE your 2021 tax refund and may even cause you to owe the IRS.

For questions, please go to Advanced CTC FAQ

To manage your payments (stop or reduce payments or change how you receive your payment) go to  CTC Update PORTAL