ELIGIBLE Americans scoring Child Tax Credit checks should consider that the extra cash of up to $3,600 per child will affect next year’s taxes.
This January, the Internal Revenue Service (IRS) will be sending what they’re calling Letter 6419s to families to calculate the money they received and what amounts might be owed due to overpayments.
In January, the IRS will be sending what they’re calling Letter 6419s to families to calculate the money received[/caption]
The letter will calculate the “total amount of advance Child Tax Credit payments that were disbursed to you during 2021,” the IRS states.
PAY NOW, NOT LATER
The CTC checks started landing in Americans’ bank accounts and mailboxes in July and are expected to continue through December.
The IRS is relying on the most recent tax filings, most commonly the 2019 or 2020 tax returns to verify if the family qualifies for CTC credits.
If a family’s financial or status changed in 2021 that means your eligibility to receive the credits did too.
KEEP IRS INFORMED
For instance, if your family welcomed another child to the family or you were married – this could factor into your payments.
If you were given a raise in pay or your child became an adult and turned 18 – these could all cause your family’s CTC amount to be less than what you received, CNET reports.
A handy way to offset having to pay back the feds for this money is to keep your family’s information updated.
Read our Child tax credit live blog for the very latest news and updates…