The Internal Revenue Service will issue information letters to Advance Child Tax Credit recipients starting this month. It will also begin sending letters to recipients of the third round of the Economic Impact Payments at the end of January.
The information is designed to assist recipients in preparing their 2021 federal tax returns.
Families that received payments must file a 2021 return and compare payments received in 2021 with the credit they can claim on their returns.
Letter 6475, Your Third Economic Impact Payment will help recipients determine if they can claim the Recovery Rebate Credit on their tax year 2021 tax return. The third round included “plus-up” payments, which were based on 2019 tax return or information received from SSA, RRB or VA; or to people who may be eligible for a larger amount based on their 2020 tax return.
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards. Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that. A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind