IRS starts sending out advance CTC, EIP letters

The IRS will start sending out information letters to recipients of the advance Child Tax Credit and of the third round of Economic Impact Payments that were made in January 2021.

We will need to reconcile any advanced CTC received and the payments with your 2021 tax returns due April 18, 2022.

Letter 6419 for advanced CTC recipients will include the total amount of credits that you received. The credits were sent out monthly starting last June 15, and were calculated based on information from your previous returns, so you may have received too much – or too little.

If you received too much, you will need to repay it; if you received too little, or were due the credit but didn’t receive it at all, we can claim the amount due to you on your 2021 tax return.

The advanced CTC letters will start going out this month, and continue into January 2022.

In late January, the IRS will start sending out Letter 6475, “Your Third Economic Impact Payment,” to EIP recipients.

That third round, which was sent out starting in March of this year, were advanced payments of the 2021 Recovery Rebate Credit. Like the advanced CTC payments, they were based on information from previous returns, and so will need to be reconciled with your 2021 tax return.

Please keep an eye open for these two letters;  letter 6419 and letter 6475.  Send them to us with your 2021 personal tax data.