Did you receive an advanced child tax credit payment?

If so, be on the lookout for IRS letter 6419 - 2021 Advance CTC. The IRS started issuing letters to advance child tax credit recipients in December. This letter includes 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. Keep this letter as part of your records when filing your 2021 tax return. This letter contains important information that can make preparing your tax return easier. People who received the advance payments can also check the amount of their payments by using the Child Tax Credit Update Portal | Internal Revenue Service (irs.gov) available on IRS.gov.

Families who received advance payments need to file a 2021 tax return and compare the advance payments they received in 2021 with the amount of the child tax credit they can properly claim on their 2021 tax return. 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. This includes families who don't normally need to file a tax return.

More information regarding the advanced child tax credit can be found at Advance Child Tax Credit Payments in 2021 | Internal Revenue Service (irs.gov).

Contact OPK Tax & Financial Services to learn more.