Millions of families received Child Tax Credit last year. The payments will impact the tax filing process in 2022. The IRS issued the first half of the credit in six monthly installments. The remaining half is due till the tax season arrives. CNBC reports that the families will need to present proof of the amount they received in 2021.
The IRS will use the information to issue the remaining payments for each family. The IRS has started to send Letter 6419 to the beneficiaries notifying them of the received amount under the enhanced Child Tax Credit. The families will receive the checks by the end of January.
Low-Income Families Have Benefitted From The Enhanced Credit
The enhanced child tax credit has benefitted millions of low-income families who suffered during the pandemic. The families must present the letter when they file their 2021 tax returns.
The beneficiaries will have to fill Schedule 8812 and Form 1040. The families who fail to fill out the form will not receive the tax refund. The families should take care of the reconciliation process to avoid delays in the payments.
The families who don’t receive the letter by the end of this month will recheck the tax information. The individuals and families can visit the official IRS CTC update portal to get the necessary information and keep track of future payments.
Filing Of Tax Returns Is Important
Each family should file the tax returns to receive a complete refund of the taxes. The parents of the eligible children will also get the rebate despite their income not being taxable. The families with children from 6-17 received $3,000, while those under six received $3,600 per month from July to December.
The families who did not receive advance payments will get their dues while filing the tax returns this year. The income threshold of the families was a determining parameter in the eligibility. The individuals who face issues due to incomplete or old tax information should check with the IRS or visit their online portal to update it. The IRS will soon announce the opening dates for filing the 2021 tax returns.