2021 Tax Year -- 3rd Stimulus Check Tax & Child Tax Credit Advisory from My Accountant.

[TheBlackAdder]

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You will receive a tax letter (or letters) from IRS if you received the third Economic Stimulus Impact Payment and/or Advance Child Tax Credit Payments. It is very important that you save these tax letters and provide them to us for your tax return preparation.

The IRS will begin issuing Tax Information Letters with the third stimulus and detailed child tax information early this year.

Tax Information Letter 6475 will detail the amount of the third Economic Impact Payment issued. Tax Information Letter 6419 will detail the total amount of Advance Child Tax Credit Payments issued in 2021 as well as the number of qualifying children used to calculate such advance payments.

Depending upon your income, you may be entitled to a Recovery Rebate Tax Credit if you only received a partial stimulus payment or none at all. In no case will you be required to pay a stimulus payment back, regardless of your 2021 income.

For those qualified for the Advance Child Tax Credit, a reconciliation is required to determine if you are entitled to additional amounts on top of those already received, or possibly whether you received too much. The exact child tax credit amount earned is based upon your 2021 income, and will be computed as part of your tax return. We must receive your Advance Child Tax Credit letter from IRS in order for this computation to be accurate.

Please look for these IRS Tax Information Letters to arrive soon and be sure to submit them to us with your 2021 tax materials. Please call or email us if you have any questions or need our assistance.

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