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National News See other National News Articles Title: IRS Expected To Send Out This Important Letter IRS Expected To Send Out This Important Letter (PresidentialWire.com)- Families who in 2021 received an enhanced child care tax credit will have to make some adjustments on how they report their annual taxes to the IRS. When the Biden administration passed the American Rescue Plan last spring, it increased the annual child care tax credit, and also allowed families to take half of the credit upfront on a monthly basis from July to December. There were millions of American families who took advantage of these monthly payments, but that was only half of the total credit families can get. This week, the IRS announced it was sending letters to all of these families that show how much in the advanced payments were sent to them in 2021. The form, which is called Letter 6419, will be sent through the end of this month. It needs to be filed as part of families’ annual taxes so the IRS can apply the other half of the full credit. Families will need the letter to fill out their Schedule 8812 as well as their typical Form 1040. When they do that, they’ll figure out how much more of the total child care tax credit they’ll be allowed to write off. Tax researcher specialist and CPA Sheri Fronsee with the National Association of Tax Professionals explained: “If you don’t make that reconciliation, they’re going to hold your refund until you do that. You don’t want that to happen — make sure that reconciliation is done.” Families who don’t receive the letter for one reason or another can get the information in other ways to ensure they file their taxes properly. The IRS has a CTC update portal that families can check on their website. All families who are eligible to receive the enhanced child care tax credit should definitely file their taxes this year. That’s because another provision of the American Rescue Plan was making the credit fully refundable for last year. This means that families who have children who were eligible for the tax credit could get a tax refund even if they don’t owe any taxes for 2021. That could be a significant amount of money, too, based on the enhanced amount of the credit. Children between the ages of 6 and 17 qualified for a full tax credit of $3,000 for 2021, with children under 6 being eligible for a full tax credit of $3,600. Families could opt to take half of that upfront in six even monthly payments starting in July of 2021. That would amount to $250 per month per child between 6 and 17 and $300 per month per child under 6. Families could also opt out of receiving those advanced monthly payments. If they did that, they can claim the full child care tax credit for each eligible child with their annual taxes. Annual taxes will also be an opportunity this year to claim the third stimulus check if they never received one. Poster Comment: No monay, no partay. Post Comment Private Reply Ignore Thread
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