IRS Sending 2 Crucial Coronavirus Stimulus Check Letters
The IRS is not sending any fresh round of stimulus checks, but it is sending two important letters that people should be on the lookout for. These two coronavirus stimulus...
The IRS is not sending any fresh round of stimulus checks, but it is sending two important letters that people should be on the lookout for. These two coronavirus stimulus check letters are regarding the third stimulus check and the child tax credit payment. So, those who received the third stimulus check or the child tax credit or both, should check their mail for these two letters as it will help them with their 2021 tax return.
Two Coronavirus Stimulus Check Letters: What Are They?
According to the IRS, it started issuing the letters regarding the child tax payments in December, and will continue to send them through the first part of this year. The IRS will continue to send letters on stimulus payments by the end of January.
The IRS is urging anyone who got these letters to hold onto them for the 2021 tax filing season, which is likely to start sometime later this month. These two coronavirus stimulus check letters would help tax filers avoid errors and delays with their tax return.
Those who received the monthly installments under the new child tax credit program will get a letter from the IRS, called Letter 6419. This letter details the amount that they got and the calculation of their child tax credit amount.
Under the new child tax credit program, eligible households got half the payment in six monthly installments. The other half they will get as a lump sum after they file their 2021 tax return.
Thus, it is important for tax filers to keep the IRS letter as it will help them understand the calculation of their monthly child tax credit, as well as the lump sum payment that they will get. Specifically, it will help taxpayers in determining how much child tax credit they will get when they fill out Schedule 8812 and Form 1040.
Those who opted out of the monthly payments (and those who don't normally file tax returns) will be able to claim the full amount of their child tax credit amount when they file their 2021 tax return.
Letter Could Help You Get More Money
The second IRS letter that people are getting is Letter 6475, and it relates to the third stimulus check of up to $1,400 that was approved by President Biden in March last year. This IRS letter details the amount that an individual received in the form of a third stimulus check.
Also, the letter will help tax filers determine if they are eligible for more money or not under the third stimulus check. If they are eligible for money, then they will be able to claim it as the Recovery Rebate Credit when they file their 2021 tax return.
“…people who are missing stimulus payments should review the information to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2020 or 2021," the IRS said.