The Advance Child Tax Credit Payments helped millions of American families navigate the difficulties of the past year. If you received these payments, here’s what you need to know about how to reconcile them on your 2021 tax return.
Advance Child Tax Credit Payments and Your 2021 Tax Return
With tax season already underway, it’s time to start thinking about some key items on your 2021 tax return.
One of the things you have to keep in mind this year is to reconcile your Advance Child Tax Credit Payments and your Child Tax Credit.
Here are the two basic possibilities and what to do in each case:
- You received less money than your Child Tax Credit: If the amount you received during 2021 is less than your Child Tax Credit, then you can claim the difference on your 2021 tax return.
- You received more money than your Child Tax Credit: If the total of the Advance Child Tax Credit Payments you received last year exceeds your Child Tax Credit, then you may need to repay all or part of the exceeding amount.
About Letter 6419
The IRS should have sent you a letter last month stating the total amount of Advance Child Tax Credit you received last year.
The official name of this correspondence is Letter 6419. Make sure to keep this letter with your tax records and refer to it as you complete your 2021 tax return. Being accurate makes tax filing easier and helps reduce delays in your refund.
If you have other questions about how to reconcile your Advance Child Tax Credit Payments on your 2021 tax return, don’t hesitate to contact our experts at Delgado’s Insurance. We’ll be happy to offer assistance with everything from tax credits to important tax deadlines you should keep in mind.
Need Help Filing Your Taxes? Contact Delgado’s Insurance
Taxes don’t have to be complicated. At Delgado’s Insurance, we help you maximize your refund while staying compliant with all relevant laws and regulations.
We have locations in Riverside, California, and Bloomington, California. Contact us today by telephone (951-361-0084, 909-421-9003), email (mail@delgadosinsurance.com), or through our social media accounts (Facebook, Twitter).
