Households who obtained the kid tax credit score have to look out for this letter

Submitting 2021 taxes will look barely totally different for households who obtained the improved little one tax credit score final 12 months.

That is as a result of the month-to-month funds that had been despatched to hundreds of thousands of households with eligible youngsters from July to December solely accounted for half of the credit score. Now, those that obtained the cash want to point out what they obtained to verify they get the second half of their 2021 tax refund.

The IRS has begun sending letters to households that present the entire quantity of advance funds they obtained. The company will proceed to ship out the shape, referred to as Letter 6419, to households via the tip of January.

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“That quantity goes to be wanted to be reconciled on their 2021 tax return,” stated Sheri Fronsee, a CPA and tax researcher specialist with the Nationwide Affiliation of Tax Professionals.

Reconciling at tax time

Households ought to maintain onto the letter and use it to appropriately reconcile the kid tax credit score once they file their 2021 taxes. The knowledge will likely be useful in filling out Schedule 8812 (along with Form 1040) which can decide how way more cash they get from the credit score.

“In the event you do not make that reconciliation, they will maintain your refund till you try this,” stated Fronsee. “You don’t need that to occur — make it possible for reconciliation is finished.”

In the event you do not obtain the letter, there are different methods to be sure you have the right data to file your taxes correctly. Households also can verify how a lot they’ve obtained via the superior little one tax credit score funds utilizing the IRS CTC replace portal.