The IRS has provided key things to look for when receiving an IRS letter; Check Online Account if uncertain about amounts tips and guidance on reporting advance Child Tax Credit payments for the 2021 tax return, including steps to take when the Letter(s) 6419 amounts and the Online Account amounts do not reconcile.
Reporting advance payments total on your 2021 tax return
If someone received advance payments of the Child Tax Credit, they need to reconcile or compare the total amount received in 2021 with the amount they are eligible to claim on their tax return. “Reconciling” the advance Child Tax Credit payments means:
- Compare the total amount of the advance Child Tax Credit payments that a taxpayer received during 2021 (even if that amount is $0) with
- The amount of the Child Tax Credit they can properly claim on their 2021 tax return.
To reconcile — or compare — these amounts, taxpayers will need to do the following:
- Get the advance payments total and number of qualifying children in their IRS Online Account. Taxpayers can also refer to Letter 6419. If the amount in their Online Account differs from their letter, they should rely on the amount reflected in their Online Account.
- Enter the information when prompted by their tax software or on Schedule 8812 of the Form 1040.